• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

what insurance is needed during a fire claim for business

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

#1
CA

we temp shutdown our bar after a fire, and our insurance is up for renewal renewal. the renewal is during a fire claim and I am asked to buy new insurance which is the same as the insurance coverage prior to the fire.

what do I really need? I heard we dont need business income and barely any property. what about general liability? liquor lialbity is very pricy and we won't be operating for a while.


GENERAL LIABILITY -
General Aggregate $
Each Occurrence $
Products & Completed Operations $
Personal & Advertising Injury $
Damage to Premises Rented to You $
Medical Expense
Liquor Liability - Each Claim/Aggregate Limit
$ Assault & Battery Liability
$ Deductible $

PROPERTY -

Business Personal Property - Theft Excluded $
Business Income $
Tenant Glass $
Deductible
 


quincy

Senior Member
#2
Who told you that you needed the same coverage that you had prior to the fire?

Was your bar fire caused by a wildfire?
 
Last edited:
#3
my broker came back and said I should have it. kinda strange when I dont have much.

nope not wildfire, different time and area. thanks
 

quincy

Senior Member
#4
Thank you for answering my questions.

How long do you expect to be shutdown?

Have you discussed the need/reasons for full coverage with your agent? I can see areas where coverage might not be necessary.

We have, as a note, a member who was an insurance adjuster who can probably provide you with what is necessary and what might not be. You might want to wait for a reply from "adjusterjack."
 
Last edited:
#5
my broker came back and said I should have it. kinda strange when I dont have much.
I would also like an answer to how long you expect to be shut down. But for the moment let's assume a couple of months. If that's the case I agree with your broker that you should renew the existing policy as is.

1 - Continuity. Being underwritten for a new policy after a fire claim could subject you to a new set of standards and higher rates.
2 - Buying individual coverages temporarily is likely not to be cost effective.
3 - Being without some of the coverages could be problematic if something else happens while you are shut down.
4 - You could ask that the company suspend the liquor liability coverage during the period of shutdown if that's the most expensive part of your policy. You can even do that now for a break between now and the end of the policy year. But I suggest two things. A - The underwriter's written agreement that the coverage will be reinstated at the appropriate time. Don't rely on anything the agent "tells" you. B - Check with the liquor license board to make sure your liquor license remains in effect while the liquor liability coverage is suspended.

If only a couple of months then picking and choosing isn't going to make much difference in the premiums. It's also better to have the coverage and not need it than to need it and not have it.

I may have different ideas with the answers to the following:

What is the exact date of your renewal?

How long do you expect to be shut down? And why?
 
#6
Im tossing out some thoughts to consider.

If there is anything left to insure, property wise, if you drop property coverage, should something happen to the remaining property, then of course you wouldn’t have any insurance to cover that.

You have liability concerns as long as you own the property. They would be different due to not operating but you still have general premises liability concerns to protect yourself from. Who knows who may wander into the property and get injured.

I haven’t looked but I suspect your insurance required by the state involved with the liquor license will need to be in force unless the license is suspended. An active license generally means a right to sell so there is a liability there. A liquor license can (in some states and depending on different types of licenses) allow you to sell regardless of a situation such as yours. If your license allows you to set up a tent and serve, (whether it be at the site of the bar or at other venues such as a wedding reception), I suspect the liquor liability insurance would need to be maintained.

If the state requires you to maintain insurance, you might look into a temp suspension of the license to avoid this cost.
 
Sponsored Ad

Top