Another Reason to Join an Industry
Association
There's a myriad
of reasons to join an industry association:
someone to stand up for businessiness like yours,
insurance discounts, free or discounted server
training, opportunities to network with your
peers, and minor discounts on a host of other
products and services.
Now, the Illinois
Licensed Beverage Association has added something
even sweeter. They've
partnered with a firm called Glacial Energy. Glacial
Energy buys power in bulk at a discounted rate,
then, through partnerships like they've entered
into with the ILBA, sells it back to
businesses.
As members of the
ILBA, we checked in to see what they could do for
us.
Our office's power consumption is pretty
modest compared to even small bars and
restaurants.
We have an annual usage of about 50,000
kilo watt hours (KWH). Going
directly to AmerenIP for our power, our rate was
approximately $0.07764 per KWH, for annual utility
costs of about $3882. However,
buying our energy through Glacial Energy at their
discounted rate of $0.05744 per KWH our annual
utility costs will be $2872. That is a
26% savings that will let us cut over $1000 out of
our budget.
A small bar near
our office also made the switch. They had
an annual usage of nearly 100,000 KWH and were
paying about $7000 a year in utility costs. By taking
advantage of this opportunity they'll be saving
about 21%, nearly $1500.
These savings are
a lot more than just a drop in the bucket, we're
talking some serious savings here. Better
yet, based on what we've heard, these two examples
aren't exceptions to the rule; they seem to be
in-line with what other ILBA members are getting
in savings.
We've talked to other members who have
kicked the tires on this deal. Across the
board, the average annual savings seems to be
around 20%.
One business we heard from is saving almost
$5000 a year by switching. This
entrepreneur's business obviously consumes a lot
of power, but still, that's a hefty savings to his
bottom line.
The best part of
this:
Glacial Energy doesn't require a contract
or any sort of commitment. They
figure that with the savings you get, you'll
probably stay committed long-term. There are
no fees to switch and no interruptions in
service.
Glacial Energy is
currently working on similar deals with natural
gas companies as well. We'll pass
along more info when they're able to offer
discounts on that service as
well.
|
2010 Illinois Dram Shop Liability
Limits
On January 20th of each year the
Illinois Comptroller is required to determine the
liability limits under the Liquor Control Act of
1934 for causes of actions brought under the
Act, in accordance with the consumer price index
change during the preceding 12-month calendar
year.
According to the Bureau of
Labor Statistics, the Consumer Price Index
increased 2.72% during the preceding calendar
year. Based on these new figures, the
liability limits are:
Bodily Injury: $60,247.68 per
injured/damaged person
Property Damage: $60,247.68 per
injured/damaged person
Loss of Society/Loss of Means of
Support: $73,636.05 per person.
For perspective, below are the past
limits.
Bodily Injury
2000: $46,949.92
2001: $48,541.52
2002: $49,293.91
2003: $50,467.11
2004: $51,415.89
2005: $53,092.05
2006: $54,907.80
2007: $56,302.45
2008: $58,599.59
2009: $58,652.33
2010: $60,247.68
Property Damage
2000: $46,949.92
2001: $48,541.52
2002: $49,293.91
2003: $50,467.11
2004: $51,415.89
2005: $53,092.05
2006: $54,907.80
2007: $56,302.45
2008: $58,599.59
2009: $58,652.33
2010: $60,247.68
Loss of Society/Loss of Means of
Support
2000: $57,383.23
2001: $59,328.52
2002: $60,248.12
2003: $61,682.02
2004: $62,841.64
2005: $64,890.28
2006: $67,109.53
2007: $68,814.11
2008: $71,621.72
2009: $71,686.18
2010: $73,636.05
Percent of Change
2001: +3.39%
2002: +1.55%
2003: +2.38%
2004: +1.88%
2005: +3.26%
2006: +3.42%
2007: +2.54%
2008: +4.08%
2009: +0.09%
2010: +2.72%
The numbers speak for themselves.
In the last ten years, Bodily Injury and Property
Damage have risen by $11,706.16, respectively,
while Loss of Society/Loss of Means of Support has
increased by $14,307.53. The lesson we try
to stress to our clients is that the cost of
Liquor Liability claims goes up every year.
If you're still one of those people carrying
$300,000 in liquor liability coverage, you're
playing with fire.
In a one person claim, you're probably safe
with a liability limit like that. But even a
two person claim, with maximum damages awarded per
person for Bodily Injury, Property Damage and
LS/LMS, you could face a potential claim of
$388,262.82 - putting you almost $90,000 out of
pocket without considering whether your policy
limit includes or excludes defense costs.
Even with a $500,000 Liquor Liability limit,
it doesn't take much stretching of the imagination
to envision a potential claim that would exhaust
half a million dollars of coverage.
Increasing damage settlements such as this are
precisely the reason that $1 Million in liquor
liability coverage is becoming the industry
standard. |
Spotlight On: Mine
Subsidence Coverage
This time of year, as the ground thaws from
winter's retreat and softens due
to springtime showers, it's not uncommon to
see a few stories or claims about buildings
damaged by old mines sinking. This process
is called subsidence, and a story we found late
last month about a dam in Pennsylvania piqued our
interest on the subject.
In 2005, a dam at Ryerson Station State Park
in Greene County, Pennsylvania was cracked, making
it dangerously unstable and forcing the 62-acre
Duke Lake to be drained. A study was
conduced and in the report published last month,
it was determined that a nearby mine was
responsible for the shifting of the ground that
made the dam crack.
Most Property insurance - homeowners and
commercial property - excludes mine subsidence as
a covered peril, with the exception being listed
below. But you can choose to "buy-back" this
coverage as an optional endorsement to the
property portion of your policy, regardless of
your state, county, or the history of mining in
your area.
Mine Subsidence coverage differs by
state. In Illinois, a company is required to
offer it if mines existed at one time or another
under one percent or more of the land. 34 counties are affected by
this requirement. Even if you live in one of
the affected counties, you can choose to reject
the coverage.
In Indiana, mine subsidence coverage is not
required to be offered to you in the 26 counties with a record of
mining.
Missouri does not have any requirements about
mine subsidence coverage having to be
offered.
The coverage is relatively inexpensive, with
a cost ranging from just a few dollars a month for
homeowners, to under $200 per year for our average
commercial clients. There typically is not a
lot of claim activity related to mine subsidence,
but the claims that are filed are usually quite
substantial.
Another point to consider when debating mine
subsidence coverage - not all all mines were
mapped, and the accuracy of those maps aren't
ironclad. As the Illinois State Geological
Survey, the organization responsible for
maintaining Illinois' mine system maps,
disclaims:
"Please note the accuracy and
completeness of the mine maps vary, depending on
the availability and quality of source
material. Little or no information is
available for many older mines because mining
activity was not regulated or documented until the
late 1800's. Even then, reporting
requirements were minimal. Also, early mine
maps were often sketched by miners working in the
mine at the time, or were constructed solely from
memory. However, mine maps are a good source
for determining if mines are present in the
general area of your
property." |
Dollars and Sense:
Considering Liquor Liability in
Missouri
Many businessowners we consult with in
Missouri are reluctant to purchase liquor
liability, also known as Dram Shop,
insurance. They cite the price, of course,
but also often point out that there are but few
examples of awards handed out by courts under the
"dram shop law."
Recently, a case involving a St. Louis
restaurant that reached a $2,250,000 settlement
for an auto accident involving an allegedly
intoxicated patron was reported on various news
stations and in the papers.
Clearly, liquor liability is a serious
exposure with potentially large consequences in
Missouri. Its not something you should
ignore because you're not aware of many cases
involving bars or restaurants being found guilty
of serving an intoxicated patron. The law is
such that you, the liquor-serving establishment,
can and will be held liable and there is legal
precedent of large claims. When the victims
of allegedly intoxicated persons sit down to
figure out who they can sue for their damages, who
do you think they lick their chops over more - you
the business with a steady stream of customers
coming and going day after day, or poor little
John or Jane Doe? We've seen it time and
time again, they're going to follow the
money.
The thrust of this article isn't to focus on
the history of dram shop settlements in
Missouri. Let's look past court judgments
for a moment. The biggest cost of liquor
liability claims are the legal fees. Court
fees, filing fees, document fees and of course
attorney fees. Without liquor liability
protection, you have to reach into your pocket
just to defend yourself. That can get
costly, quickly. But with a liquor liability
policy, your insurance company defends you.
And with the right kind of liquor liability
policy, your defense costs are separate of your
policy limit, so even if you have a claim and get
drug into a protracted, costly legal fight, only
to lose the matter, your policy isn't eaten away
by your defense costs. These are the liquor
policies we sell.
If you're a Missouri businessowner with a
liquor exposure, the decision to purchase liquor
liability protection shouldn't come down to
dollars and cents. It should be based on
sense - common sense. You've invested a lot
of time and money in establishing your
business. Don't leave a gaping hole in your
protection of it.
|
Reducing Slip & Fall
Hazards
Looking for ways to cut insurance
costs? Everyone is right now. How
about starting with something you can control,
your employees? Through some relatively
modest investments in employee safety and
stressing safety to your employees, you could
reduce claims from your employees (workers
compensation) and your patrons (general liability)
and, with a couple of claim-free years, lower your
premiums by becoming eligible for a loss-free
discount or two.
Grease and water on the dish room floor or a
mat with an upturned corner are just a few of the
slip and fall hazards that commercial kitchen
employees face every day. But managers and
employees alike can minimize the risk through
vigilance and proper cleaning practices.
OSHA also has standards that employees must meet
in order to protect restaurant employees and
patrons from harm.
Potential Hazards
All restaurant employees face the danger of
slipping and falling. Slips and falls can
result in injury that will result in lost work
hours and can negatively effect the restaurant's
safety reputation. OSHA recognizes the
following conditions as hazards to restaurant
employees that can result in slip and fall
injuries:
- Cluttered and slippery floors from oil,
water or food in the cooking and dishwashing
areas can cause falls.
- Physical obstructions like improperly placed
drain covers are especially hazardous to
kitchen workers.
- Employees that put away new inventory are
subject to fall hazards because they cannot
always see obstructions in their path.
Weather conditions can also play a role for
employees taking items off the delivery truck.
- Servers and bussers also face fall hazards
when carrying trays or stacks of plates around
blind corners or through single entry doors to
the kitchen.
What Employees Can Do to Protect
Themselves
There are several recommendations that
commercial kitchen employees can follow in order
to protect themselves from falling.
- Wear non-slip, waterproof shoes to decrease
the chances of slipping
- Clean up any spill immediately
- Do not run in the restaurant
- Properly store all products and supplies to
eliminate clutter
- Be aware of outside weather conditions and
dress appropriately when unloading supplies
- Apply de-icing products to exterior walkways
and entryways to protect both employees and
customers
- When carrying stacked items, employees
should be able to see over the stack to clearly
navigate to their destination
- Be sure that rugs and mats are in their
proper places and that all corners or edges lay
flat
- Do not overfill bus tubs, since items may
fall out and cause a trip hazard
What Employers Can Do to Protect
Employees
It is the restaurant owner's responsibility
to provide a safe, injury-free environment for
employees and customers. Though accidents do
happen, there are several initiatives many
employers can take in order to reduce the risk of
slip and fall injury in the commercial
kitchen.
- Provide two double swing doors with window
on the kitchen entrances to assure those exiting
and entering the kitchen can see what is on the
other side
- Provide floor or ceiling outlets to plug in
equipment so power cords do not run along
walkways. But make sure floor plugs are
not in areas where water on the floor is common,
since this could cause electrocution
- Stretch or re-lay any carpet that is bulging
or bunched-up to eliminate a tripping hazard
- Use non-slip floor mats or non-skid floor
waxes on surfaces where water or oil may be
spilled
- Provide adequate floor drainage in wet areas
- Place convex mirrors at blind corners
- Provide adequate lighting in all kitchen and
cooking areas so employees can see where they
are going
- Replace any drain covers that are loose or
broken
- Require employees to purchase non-slip
restaurant shoes to assure adequate footing on
wet surfaces
| |
Be sure to add our email address to your
contact book to ensure that you continue receiving
industry updates, informative articles and tasty
tidbits.
Sincerely,
Bret Dixon Insurance
| | |
Don't Forget Our
Personal Lines in
2010! |
|
We offer a full-line of personal lines
coverages for your
home, auto, boats, motorcycles, RVs, and
more. Give us a shot at your next renewal to
see how we compete.
Click here for more
information.
| | |