January 22, 2020
Commercial liquor hosts are held to a high standard of responsibility for the safety of their patrons. In Canada, a patron who sustained injuries during the process of being forcibly removed from a restaurant can sue the host for Forcible Ejection. Despite this being a common legal issue, many insurance companies have a hidden Forcible Ejection exclusion, or those that do have a very low limit. That is why South Western provides this type of coverage so that brokers can present more options for mitigating exposures.
What Factors Increase the Risk of Unruly Behaviour?
Alcohol consumption always increases the risk of unruly behaviour and injury. In addition to the right coverage, restaurant owners need savvy brokers who can identify the risks that could lead to a patron’s forcible removal.
● Restaurants, bars, pubs, and taverns are at higher risk during popular “drinking days” (e.g. St. Patrick’s Day). These are times when patrons are likely to drink more, and overcrowding and/or entrance obstruction are potential safety issues.
● In commercial districts, patrons may drink at one or several other restaurants in the same night, and may already be inebriated by the time they reach the client’s venue.
● Restaurant owners can be held liable for the conduct of their employees if there is sufficient evidence that the assault occurred within the scope of the employee’s authorized duties. (1)
A Closer Look at What’s Covered
SWG HOST Hospitality Services Insurance is a leading program designed to accommodate most classes of hospitality risks. It covers restaurants, fine dining, pubs, bars, pool & billiard halls, and motel/hotels not exceeding 35 room rentals.
We provide forcible ejection up to policy limits and standalone liability is available. Depending on the town grade, construction, and age of the building, we can also quote up to $2,500,000 property coverages. Liability is acceptable up to $7,000,000 in-house.
Crime Coverages Includes:
● Employee Dishonesty
● Broad Form Money & Securities
● Legal Expense (claims Made Basis)
Commercial General Liability Includes the following highlights:
● Most classes of Hospitality risks
● Bodily injury and property damage
● Forcible ejection up to policy limits
● Tenant’s legal liability
● Non owned automobile – excluded if there is delivery service
● In-house excess up to $5,000,000 limit
● Property includes building & contents
● Business Interruption
● Flood, Earthquake, and Sewer Backup
● Extensions of Coverage – include:
● Personal Property of Officers and Employees
● Any one officer/employee
● Any one occurrence
● Growing Plant, Trees, Shrubs or Flowers in the Open
● Accounts Receivable
● Stock Spoilage/Consequential Loss
● Building By-Laws
● Inflation Protection
● And more
Not available in Quebec. See our websitefor more details.
Content is current as of the date of broadcast and is subject to change without notice.