Businesses in the Food and Beverage Industry are constantly changing to meet the needs of customers. One of the main changes we see is through entertainment offerings. Do you have live bands every Friday and Saturday night or karaoke every Thursday? Are you hosting bar trivia or a DJ on Wednesday to attract more customers during the week?
Some of these changes even vary by the time of year. For instance, a college bar may increase their entertainment offerings when school is in session since more people will be drawn in at that time. Other establishments may try out the newest fad, like we have seen with axe throwing.
While ICC’s appetite includes risks with entertainment, it is important that we rate properly for the type and frequency that it is offered. We consider the type, such as live bands, DJs, and karaoke, and then price for the frequency it is offered. There are even some types of entertainment that we will not find acceptable, like punching bags, axe throwing, and boxing or mixed martial arts.
The agent remains our primary source of information when a new business application is submitted. However, we also incorporate media searches to provide a window into the day-to-day operations of a risk. Social media platforms allow the Underwriter to verify real time information, including type and frequency of entertainment.
Most often, we view social media content directly from the business. At times, customers will share videos of their own experiences, further confirming what is currently being offered. If your business has discontinued certain entertainment, make sure your social media reflects this change.
ICC Underwriters will review social media platforms at time of new business and at renewal. They will update entertainment exposures to ensure pricing remains adequate. It is important that you update your agent any time a major change occurs with your entertainment, so you don’t have a surprising rate change when your policy renews. If you are wondering whether something will be covered or if adding the entertainment at your business is worth the risk, reach out to your agent before offering it to your customers.
