ProHost Tops Up Wine Profit Coverage for Restaurants

PRODUCT: ProHost USA Restaurant Wine Valuation endorsement

COMPANIES: The endorsement is written on AXA XL paper and the program is administered by ProHost USA.

BEST RATING: A (Excellent), size XV

AVAILABILITY: Coverage is available on an open-brokerage basis.

FOCUS: ProHost writes coverage for a broad range of restaurants on admitted paper countrywide. And with nearly 30 years of experience, the Minneapolis-based restaurant insurance experts boast an extensive array of customizable restaurant, dining, catering and hospitality coverages.

In order to meet the needs of the restaurant industry, ProHost’s services are constantly evolving. Today, consumers are leaving the lower price segments in favor of better-quality wine offerings, according to the State of the Wine Industry 2018 Report from Silicon Valley Bank. Moreover, since 1994, the wine industry has experienced steady growth in terms of increased volume and increasing prices.

For restaurants, that means clients are more likely to spring the cash and pop the cork of a more expensive grape. Restaurants have responded with extensive wine lists, cramming their cellars with rare and expensive vintages from the new and old world alike.

In an industry where there is plenty of competition and many challenges, high-end restauranteurs no longer need the added worry of proper insurance coverage for their well-stocked wine cellar.

ProHost’s new specialized endorsement gives restaurants the “advantage of covering the profit portion of their wine collection,” says Heidi Strommen, president, ProHost USA, Inc.

Because wine markups often sit at two to three times the wholesale cost, wine sales can be a significant source of revenue, especially for higher‐end establishments.

“The wine valuation endorsement is specifically geared to meet the needs of restaurants with high-valued wine collections,” Strommen says. “The longevity of our company’s history, combined with our niche market concentration, has allowed us to innovate specialty programs that keep pace with the changing landscape of the restaurant industry.”

COVERAGE DETAILS: The Restaurant Wine Valuation endorsement values bottled wine at its selling price rather than at replacement cost. As a coverage enhancement to ProHost’s exclusive package programs for restaurants, it can be added to ProHost’s restaurant package policy at no additional premium. ProHost offer a $250,000 limit per location for wine collections.

UNDERWRITING: Application requirements include ACORD forms, ProHost’s restaurant supplemental application, and four years of loss runs. ProHost will also consider new venture restaurants with experienced management. No stock appraisal is necessary.

MINIMUM PREMIUM: $5,000.

TARGET: ProHost writes a broad range of restaurants, from fast casual to fine dining. Clients who will benefit from the endorsement most are higher-end restaurants with extensive wine cellars.

COVERAGE TERRITORY: U.S.

COVERAGE AVAILABILITY: All U.S. states except Alaska.

CONTACT: Heidi Strommen, president; ProHost USA, 4500 Park Glen Road, Suite 410, Minneapolis, MN 55416; 952-922-2404.

Will Jones is IA assistant editor.