Program
Overview | Why
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Commercial
General Liability
Additional/Extensions of Coverage we are proposing include:
• Liquor Liability which provides coverage for liquor related losses
• Assault & Battery which is often excluded entirely or limited
• Employee Benefits Liability that provides coverage for the company
in the event an error or omission occurs in providing employee benefits
coverage.
• Non-Owned & Hired Car Auto Liability which provides coverage
for the company when rented vehicles are used, or employees’ vehicles
used in connection with business activities.
• Garage Keepers Legal Liability, which provides coverage for clubs
that operate parking facilities or offer valet parking to their customers.
Deductibles always apply to this class of business. The
minimum deductible is $5,000 per claim, including loss adjustment expenses.
The determination of the appropriate deductible depends on the size of
the club, the amount of sales, loss history and the premium consideration.
The higher the deductible, the lower the premium.
Typical
Exclusions include:
• Employment Related Practices
• Sexual Abuse and Molestation
• Sexually Transmitted Diseases
• Workers Compensation & Employers Liability
• Business Auto
• Aircraft
• Professional Liability
• Medical Payments
• Punitive Damages
• Pollution
• Asbestos
• Fungi & Bacteria
• Lead Contamination
• Medical Payments (without regard to liability)
Premiums
and Audits – All premiums are determined by applying specific
rates to the sales of the club and are written on an “estimated”
basis, subject to audit of the sales at expiration of the policy. The
minimum deposit endorsement applies meaning no return premium given if
the audited sales are less than the estimated sales at policy inception
Minimum Premiums – All policies are subject to
a minimum premium equal to 25% of the annual premium in the event of mid-term
cancellation.,
Non-Admitted Status - All policies are written on a Surplus Lines or Non-Admitted
basis, which means that the policy forms and rates are not subject to
state regulation. This is favorable from an underwriting standpoint, as
it gives the insurance company flexibility in rating and coverage forms.
Most state rating organizations have Adult Clubs classified under the
“Nightclub & Cabaret” class, which historically has very
high rates. This means that an “Admitted” company that is
regulated by the state must use the state published rates. Another consideration
is that the various State Insolvency Funds do not protect policyholders
of Non-Admitted insurance companies if the insurance company becomes insolvent
or bankrupt. Therefore it is extremely important that the Non-Admitted
Insurance Company be financially strong, have a high rating from A.M.
Best, and a proven track record of financial success.
Insurance Company and Rating – We are proposing
the Scottsdale Insurance Company (www.scotsdaleins.com) which has the
highest financial rating of A+XV “Superior” from A.M. Best
(www.ambest.com) which is the recognized insurance industry rating organization
for policyholder services, financial strength and size. Scottsdale has
a long track record of financial success and growth, and is highly regarded
as one the most desirable Surplus Lines Insurance Companies in the U.S.
In addition to Scottsdale’s excellent financial rating, the company
has underwritten adult entertainment risks for years, and has a good understanding
of how the industry operates. Scottsdale has the expertise needed to underwrite
the Program.
Eligibility Requirements – In order to qualify for the Program
there are minimum underwriting requirements as follows:
• For any risk serving alcohol, it is mandatory that all bartenders
and service staff have TIPS/TOPS or equivalent liquor training certification.
• Each club must have a safety/operational manual addressing items
such as: serving of alcohol, handling of intoxicated/underage guests,
monitoring the front door/checking of ID, use of force by doormen and
floor managers, use of alcohol by employees and independent contractors
while on the job and use of and maintenance of incident reports log book
for all incidents.
• All Independent Contractors (Security, Valet Parking, etc. –
excluding performers) must carry GL limits of at least $1 million per
occurrence and provide our insured with a Certificate of Insurance and
Additional Insured status.
• Any club with more than two (2) major liquor violations within
a three (3) year period; or any account whose liquor license has been
revoked, will not be eligible.
• Any club with more than two (2) liquor losses/incidents or two
(2) Assault & Battery losses/incidents within a five (5) year period,
will not be eligible.
11
Broadway,
New York, NY 10004
Call 866. 659. CLUB