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We Will Customize A Restaurant Insurance Program To Suit Your Business

Services & Coverages We Offer The Restaurant / Food Service Industry

 Restaurant Insurance Coverage Program Highlights

Loss Prevention & Risk Control  Services

Participants in the our Risk Management Hospitality Programs have access to a variety of risk control tools. Our resources include:

Expert Consultants

Our insurance companies and affiliated risk management & managing general agencies partners , offer experienced risk control consultants to provide hazard assessment surveys, consult with us & our agencies Hospitality Program members, and provide a variety of other services.

 Technical Bulletins

 Technical bulletins are an excellent resource that provides 1-4 pages of technically accurate and useful information for the busy general manager or director of safety & security.

Training / Management Guides

To assist in critical areas, including slip-trip & falls, pool safety, fleet safety, and crisis management, we have developed comprehensive guides to aid in training and program development.

For a helpful overview of the tools risk control NSU offers you to help reduce claims frequency and severity, please see the below linked PDF NSU brochure:

  Risk Control Services:
Protecting Your Guests – Preserving Your Bottom Line

Insurance Service Office (ISO) SAMPLE Policy Forms

Note: These Are Sample Policy Forms That Represent Insurance Industry Standardized Commercial Lines Policies.

Coverage proposals presented to you by our Agency may differ; as each insurer represented may offer modified coverage by endorsement or have filed it's own unique policy forms with the Texas Department Of Insurance. Please carefully read any carrier prepared proposal presented to you and where necessary request a copy of each insurance company policy form or endorsement presented; so that you may compare any differences in coverage offered.

Introduction

Businessowners Insurance  Policies help businesses, including farms and ranches, pay to repair or replace buildings, associated structures, and contents damaged by fire, storms, theft, and other events outlined in the policy.

This publication provides general information about the kinds of commercial property coverage that are available in Texas. It can help you evaluate different commercial property policies, understand how rates are determined, and ask the right questions when shopping for insurance. You should review your policy carefully to understand your specific coverage.

Overview

Business owners who either own or lease their buildings may purchase commercial property insurance. It’s important for a tenant business to understand that the building owner’s insurance policy will generally only cover the building or structure, not the contents of the building belonging to the tenant. Tenants should purchase their own policies to insure their on-premises property, such as machinery, furniture, and merchandise. An insurance company will evaluate factors such as a structure’s location and construction materials to determine the likelihood of a property loss. The cost of tenant coverage will generally be significantly less than for owned property coverage because the policy will only apply to the leaseholder’s on-premises property and not the building.

Typically, businesses operating on multiple premises are covered by a single policy. In certain instances, such as when two business locations serve different functions and have different risk profiles, separate policies may be needed. This may be the case when a business insures both an office location and a factory, for example.

A commercial property policy may pay based on either the “actual cash value” or “replacement value” of a loss. An actual cash value policy will pay only the amount of the property’s worth at the time of the loss  Worth is determined by the value of the property minus depreciation due to age and normal wear and tear. A replacement value policy will pay to purchase new property of like kind and quality after a loss. In general, a replacement value policy better ensures that a business can fully recover after a significant loss. Replacement value policies are typically more expensive than actual cash value coverage because the policy limits should reflect the cost to replace damaged property with new property.

Almost all policies have a “deductible,” which is an amount the business must pay out of pocket toward the cost of a claim before the insurance company will pay. Generally, the higher a policy’s deductible, the lower its premium will be because the policyholder is accepting a greater share of the cost of any eventual claims. Most policies will also include a “policy limit,” which is a maximum amount the insurer will pay toward any covered loss.

Insurers use a process called “underwriting” to evaluate the likelihood that a given policyholder will file a claim for a loss. The greater the likelihood, the higher the premium will be. If an insurer determines that a business poses too great a risk of a loss, it may decline to issue a policy entirely. If your business is declined for coverage, keep shopping; companies have their own criteria for determining whether to issue coverage and the rate to charge. If one company turns you down or is too expensive, another may be willing to issue coverage or offer a lower premium. There may also be certain steps your business can take to lower its risk and either qualify for coverage or get a lower rate.

Different types of commercial property policies protect against different risks, or “perils.” It’s important to understand which types of losses a policy does and does not cover. A commercial property policy will almost never cover any loss that is either not specifically included in the policy language or is specifically excluded. Therefore, be sure you read a policy carefully before you purchase it. You may need to buy certain specialized policies, such as flood, windstorm, or crime coverage to be protected from those particular losses.

Commercial property insurance is not standardized in Texas. Insurance companies must comply with minimum requirements but have a great deal of flexibility to develop their own policies.  As a result, the coverage provided by one insurer’s policy may differ substantially from that of another. When shopping for commercial property insurance, be sure to evaluate the costs and coverages of the policies you’re considering.

Common Commercial Property Coverages

Commercial property policies in Texas generally fall into one of three categories:

Additional coverages

Many business owners buy additional coverages. Some are available as separate policies, and others are available as endorsements, or “riders,” that enhance or amend a policy’s base coverage. Generally, adding endorsements to a policy will increase your premium. Ask your agent about these additional coverages:

Coverage against Crime

There are several types of policies that can protect a business from losses resulting from crime. Policies may be issued on a “loss sustained” or “discovery” basis. Loss sustained coverage pays for losses that occur during the policy period, while discovery coverage pays for losses that occur at any time. Both types require that losses be discovered during the policy period or extended reporting period. Common crime coverages include:

Commercial Multi-Peril Policies

Commercial multi-peril (CMP) policies combine one or more coverage forms, such as commercial property, general liability, inland marine, crime, or commercial auto, in a single policy. A business owner could add other types of coverage to ensure full protection within the convenience of a single policy.

Business owner programs (BOPS) are a common form of commercial multi-peril policy. BOP policies are tailored to the needs of small-business owners and combine property and liability coverage in one policy.

Flood insurance

Some companies may include flood coverage in their commercial property policies for areas with a low flood risk. However, most flood insurance in the United States is administered by the National Flood Insurance Program (NFIP).

To qualify for NFIP coverage, a business must be located within an NFIP-participating community. These communities have adopted federal building and floodplain management programs aimed at reducing the likelihood of future flood damage. “Special Flood Hazard Areas” are high-risk areas within NFIP communities that are a more likely flood risk. The NFIP requires all structures within these areas to have flood insurance. Because 25 percent of all floods occur in areas designated as low-to-moderate risk, even businesses outside hazard areas could benefit from flood policies.

Flood insurance is purchased through designated private insurance agents.. To get a quick quote click here call 1-800-361-8734.

Windstorm and Hail insurance along the Texas coast

Insurance companies usually exclude windstorm protection from commercial property policies for businesses located in one of Texas’ 14 coastal counties or within certain areas of Harris County. Property owners in these areas will have to buy windstorm coverage through the Texas Windstorm Insurance Association (TWIA).

TWIA is a “pool” of all property and casualty insurance companies authorized to write coverage in Texas. The insurers share the claims risk for structures located in areas with a high risk of windstorms. Buildings in these areas constructed, repaired, or remodeled prior to January 1, 1988, are automatically eligible for TWIA coverage. Those constructed, repaired, or remodeled after that date are required to pass a state inspection and receive a Certificate of Compliance, Form WPI-8, before windstorm and hail insurance coverage can be issued through TWIA.

If a business notifies its local Windstorm Inspection Field Office before beginning construction or repairs, a TDI inspector may be able to perform the inspection free of charge. The inspection will be scheduled for sometime during the course of the work. If the business requests a windstorm inspection after construction or repair work has started, the inspection must be performed, for a fee, by a Texas-licensed professional engineer approved by the Commissioner of Insurance. A list of professional engineers approved to do windstorm inspections is available on the TDI website and is also available at local TDI Windstorm Inspection Field Offices.

How Commercial Property Rates are Determined

Fire risk is typically the primary factor that determines a policy’s premium. Accordingly, a business with neat, orderly grounds and good fire protection will likely have a lower premium than a business with debris piled next to buildings and little or no fire protection. The type of business also is an important factor. For example, an explosives factory would almost certainly be deemed a higher fire risk than a travel agency.

Fire risk is assessed according to a formula to determine the structure’s “fire rating.” The complex formula weighs many factors to determine the fire rating, which largely determines the property’s premium rate.

The fire rating is determined through a physical inspection of the property by a state-licensed fire inspector. Fire inspectors are typically contracted by insurance companies to perform inspections as part of the underwriting process. Inspectors are required to use a standard rating system to determine fire ratings. The five criteria used are:

To learn the fire ratings of the individual structures on your business’ premises, ask your insurance agent. Your agent can access a statewide database of the ratings for all commercial properties. If you disagree with the rating assessed for any building your business owns or leases, first try to work with your agent, insurance company, and the inspector. If you are still dissatisfied, contact TDI’s Inspections and Fire Safety Office, the state’s final arbiter of disputed commercial property ratings

TDI Inspections and Fire Safety Office
PO Box 149104
Austin, TX 78714-9104
512-322 2259

Shopping for Commercial Property Insurance

One of the most effective ways to save on commercial property insurance is to begin shopping for coverage before you build, purchase, or lease a business property. Shopping in advance can help you understand exactly how a building’s characteristics will impact your premium.

Purchasing a commercial multi-peril policy can be another way to save. CMP policies combine multiple coverage forms into a single policy, typically for a lower premium than purchasing the coverage forms individually.

The following additional tips can also help you save money or avoid other pitfalls when buying a commercial property policy:

Help us prevent insurance fraud. To report suspected fraud, call our toll-free Fraud Hot Line

1-888-327-8818

To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hot Line

1-877-4FIRE45 (434-7345)

Don’t Be Caught Without Windstorm Insurance Coverage! - After the recent catastrophic hurricane seasons and with many people still trying to put their homes and lives back together, is your home covered for hurricane or other windstorm damage so you won’t be the next victim? If you live in one of the Texas' coastal counties, then you know how devastating and costly a storm can be. Don’t let an unexpected storm, like Rita, cost you. With the latest and most effective wind resistant construction, you will have a stronger structure and a better opportunity to obtain windstorm and hail insurance coverage through the Texas Windstorm Insurance Association or the voluntary market.