Risk Overview
A neighborhood tavern in Michigan with liquor receipts exceeding 60% of total revenue, an older building with limited fire protection, and significant business income limits tied to years of operating history. The bar exposure alone would flag most markets. Combine it with the building’s age and construction, and the risk requires an underwriter with real hospitality experience rather than one pricing it from a distance.
The retail agent brought this account to Conifer’s Food & Beverage program based on their direct relationship with the underwriting team, and the program’s track record with liquor-forward operations. The agent needed a market that understood what they were looking at and could move on it without requiring heavily reduced limits or a modification to their operations in order to fit a generalist appetite.
Exposure Profile
- Full bar operation with liquor receipts exceeding 60% of total revenue
- Older building construction with limited fire protection
- Significant business income exposure tied to long operating history and community dependency
- Liquor liability exposure as a primary coverage consideration
The underwriting focus centered on three intersecting factors: the concentration of liquor liability exposure at 60%+ receipts, the property risk presented by the building’s age and fire protection limitations, and the business income exposure that reflects how embedded this operation is in its local community. Each warranted individual attention. Together, they required a coordinated approach that most markets would not accommodate.
Coverage Structure
Placed under the Food & Beverage program.
Coverage | Limits |
General Liability | $1,000,000 / $2,000,000 |
Liquor Liability | $500,000 / $1,000,000 |
Property – TIV | $690,000 |
Notable Endorsement | Evergreen Property Extension Plus |
Total Premium | $9,700 |
Underwriting Approach
Liquor receipts more than 60% is the kind of exposure that gets a risk declined or restricted in most markets. In our Food & Beverage program, it is a known quantity that the underwriting team evaluates regularly with depth that comes from decades of hospitality experience.
The focus for this opportunity was on confirming that the liability structure was appropriate for the operational profile and that business income limits were sized to account for the tavern’s history and role as an established local operation. The Evergreen Property Extension Plus endorsement broadened the property coverage beyond what is typically provided in policies not specifically designed for this class of business.
Outcome
The retail agent placed admitted coverage for a risk that required underwriting engagement from a program built around hospitality. The insured received coordinated GL, liquor liability, and property coverage with endorsement-enhanced property protection, placed efficiently and without the friction that typically accompanies high-liquor-receipt accounts.
This placement reinforces appetite for neighborhood bars, taverns, and liquor-forward hospitality operations where coverage needs to be built around the actual risk profile rather than trimmed to fit a generalist market’s comfort level.