Are New York restaurants overpaying for their insurance?
5 Ways Restaurants Overpay for Insurance
1. Your business is not rated properly
2. Your insurance is not reviewed annually
3. Your carrier does not have current information to determine premium
4. The food to liquor sales percentage is not calculated correctly
5. Your broker just rubber stamps your renewal each year
When we look at general liability insurance, the restaurant is often overpaying for their insurance because they are not rated properly. If they are not doing the premium audits that are required every year, the insurance carrier may increase their premium because they don’t know what specific numbers are.
If I see that a restaurant’s premiums are based on a much higher revenue than actual revenue, we make sure that gets adjusted. Another cause of overpaying premium is food to liquor sales are not calculated correctly.
The higher the percentage of liquor sales, the higher the cost of insurance. If your restaurant revenue is derived more from food than from liquor, then your premium is going to be less than a venue that’s primarily liquor sales. We make sure that those numbers are accurate as far as revenue and percentage of food to liquor sales to make sure that you are properly rated, and your premiums reflect that.
If you want to make sure you have an insurance broker that makes sure you don’t overpay, give us a call and we would be happy to evaluate your restaurant. Click Here to schedule a meeting directly.