The Insurance Family Blog

(Please also see Hobby or Business – Part One.)

Most individuals use their homeowner or residential insurance policy to handle their hobby activities as a collector or enthusiast. A homeowner (HO) policy usually includes a definition of “business” and some are so broad that nearly any activity qualifies as a business. In such instances, a hobbyist or enthusiast should consider whether separate business insurance is necessary.

(Please also see our blog post Part 2 for this same topic.)

Did you know that your hobby may significantly affect your personal insurance needs? Hobbies often require a large investment in tangible property and may even create some legal responsibility to other persons or their property. 

Garage operations have hybrid coverage needs:  there’s a blur and overlap between the general liability for the operations and the automobile liability exposures. A general liability policy does not provide enough coverage and a commercial auto policy provides too much. Fortunately there is a way to properly handle this need.

Restaurants, auto repair shops, real estate offices and nearly all other businesses have signs that tell their customers their name, address, hours of operation and so on. Signs may be simple or complex and many businesses typically use lighted signs. The Sign policy created by Insurance Services Office is available to insure against the loss or destruction of signs, including fluorescent, neon, automatic or mechanical sign. Coverage also extends to lamps. However, fixed, non-lighted signs (such as billboards) are not eligible under a sign policy, even if they are illuminated by separate electric lights.

Which Homeowners Policy is Right for Me?

Does your restaurant or food services business use independent contractors for delivery services to customers?  It’s a wonderful way to serve customers and grow your sales – but its also a risky operational exposure and needs to be managed properly.  At Sutherland-Scherff we specialize in restaurants and have the experience to help you build a solid risk management program for delivery services.

Hiring and firing decisions are legal minefields that are best navigated by the use of Employment Practices Liability Insurance (EPLI). 

Does your restaurant or food services business use independent contractors for delivery services to customers?  It’s a wonderful way to serve customers and grow your sales – but its also a risky operational exposure and needs to be managed properly.  At Sutherland-Scherff we specialize in restaurants and have the experience to help you build a solid risk management program for delivery services.

A commercial property insurance policy can usually be depended upon to handle direct loss to structures, equipment and related property that are owned by a restaurant or other food service business.  However, what happens when weather conditions take a turn for the worse and cause indirect damage by knocking out utility services to your establishment?  Examples of losses include damage by heat-induced transformer breakdowns; or broken power lines, including compressors, motors and switches, which could result in food spoilage.

Recently a national restaurant chain was hit with a lawsuit from the U.S. EEOC alleging that the chain’s hiring practices discriminated against older workers.  At Sutherland-Scherff we specialize in restaurants and take a wide view of the risks facing your business.