After a quick search, they narrowed their options down purchased the first policy offered to them; a basic Business Owner’s Policy (BOP) with a $2M limit, which included commercial general liability insurance (CGL), commercial property insurance and business interruption insurance.
They had also been offered a restaurant insurance package from another company but felt the cost was too high, and the additional coverages were irrelevant to their business.
After a successful opening season, Marley’s Bar & Grill became a home away from home. After being in business for a year, they finally felt themselves being able to relax and enjoy their new role as restaurant owners. Until a quiet Tuesday morning in the fall of 2014 when Mark arrived at the restaurant to find the front windows shattered and recently installed CCTV cameras ripped from the walls.
After calling the police, Mark called his insurance company and got to work taking pictures of the damage and creating a list of what was missing from the restaurant so that he could file a claim. In the process, he discovered that Sue’s wedding ring, which she had left by the sink, had been stolen, as well as the $3000 left in the cash register overnight.
When Bad Insurance Happens To Good People
What they hoped would be a seamless claims process turned became an unsettling ordeal. To begin with, Mark and Sue did not have glass coverage, which is oftentimes included as a rider in a comprehensive commercial property insurance policy. Instead, they had assumed that because they rented the space, it was the property owner’s responsibility to ensure they had the additional coverage required to protect the building.
In their hurry to insure their restaurant in time for patio season; they had not confirmed with their landlord who was responsible for additional coverages. This miscommunication led to Mark and Sue spending $8,000 to replace the glass panels and sliding doors.