JOHNSTON, R.I. (December 8, 2021) — The employees of Narragansett Bay Insurance Company (NBIC), a wholly-owned subsidiary…
New Model Designed to Help Struggling Restaurant Industry with Cash Flow and Financing
SOUTHBOROUGH, MASS. (March 03, 2021) –
Applying an insurance model prevalent in auto insurance and workers compensation, Hospitality Insurance Group has launched a new program that will give bars, restaurants, and any other eligible liquor liability policyholders more flexibility in how they pay their insurance premiums.
Usage based coverage has been adopted for other insurance products but has never before been applied for liquor liability. In order to offer the cash-strapped bar and restaurant industry an affordable financing option, Hospitality entered into a unique partnership with First Insurance Funding.
Hospitality’s Pay as You Pour program was developed to help businesses improve their cash flow by basing their bimonthly premium payments on how much liquor they sell. Premium payments will be lower when sales are down and, conversely, when sales volume is higher, businesses will be contributing more to premium payments. The program comes as many in the hospitality industry face a winter slowdown in business, particularly amid the ongoing COVID-19 pandemic.
“This program will alleviate the financial burden that occurs when insureds have slow months and money is tight, when sales are good, they will pay a higher premium and will be in a better position to make those payments.” said Sandra Haley, Senior Vice President of Underwriting and Marketing at Hospitality Insurance Group.
To participate, businesses must make a down payment of 10 percent, which is significantly less than the usual 20 to 25 percent deposits required to finance premiums. The lower down payment will aid businesses short on cash due to the COVID-19 pandemic.
“Especially with the COVID slowdowns, people simply don’t have as much cash in their pocket. It’s a benefit for them to be able to finance the premium with only 10% down.” said Mark Trombly, Marketing Manager at Hospitality Insurance Group.
The program is a permanent financing option that will continue to be available to businesses after the COVID-19 pandemic.
Participating businesses must also have an acceptable sales verification system to upload. For those who participate in the program the renewal process will be effortless since last year’s sales information will already have been recorded as part of the program. The bimonthly premium payments for the liquor liability will be calculated by taking the average liquor liability rate which will then be multiplied by how much a bar, restaurant, or other business sells in liquor each month.
“At the end of the year, it all settles out, and they only pay for what they actually sold during the year,” Haley said.
Businesses who want to participate should contact their insurance agent.
For more information, email firstname.lastname@example.org or visit https://hmic.com/
About Hospitality Insurance Group
Hospitality Insurance Group, headquartered in Southborough, Mass., provides commercial property, general liability, liquor liability, and excess policies to owners of establishments that serve or sell liquor, including bars, taverns, restaurants, social clubs, and liquor stores, as well as caterers and other qualified businesses. Hospitality writes insurance in seven states that include Connecticut, Massachusetts, New Hampshire, North Carolina, Pennsylvania, Rhode Island, and Vermont.