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By in Latest News Comments Off on Getting To Know PaTaverns: The Role of Members

Getting To Know PaTaverns: The Role of Members

Pennsylvania Tavern Talk, a YouTube channel dedicated to the Keystone State’s family-owned taverns, bars, and licensed restaurants, released S1E4 as part of its playlist series titled Getting To Know PaTaverns.

In this episode, Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association (PLBTA), takes viewers through the role of Members. It can be viewed by clicking here.

“As a Member of our Association, those who join can define their role within membership that best fits their comfort level,” Moran says. “But for sure, being a Member comes with responsibility on behalf of the entire industry.”

Moran explains in this episode that some Members simply want to support the association through their annual dues in order for Pennsylvania’s small business taverns, bars, and licensed restaurants to have a lobbying presence at the state capitol.

Some take on a bigger role by becoming a grassroots activist and making calls and visits to their state senator and state representative in Harrisburg when directed by the PLBTA. Yet, others contribute to TavernPAC. Meanwhile, many wish to exercise their voice and vote as a Member by providing input and feedback to the association’s Board of Directors.

During the show, Moran says some go as far as volunteering to join the association’s Board of Directors when seats become available.

“Ultimately, each individual can define their role as a Member, and we hope that role will be an active participant in the political process on behalf of the industry … Organized Taverns,” Moran says.

The PLBTA is a statewide membership association responsible for organizing small business taverns, bars, and licensed restaurants for political purposes at the state capitol. While in existence since the 1940s, the association reorganized in 2019 and has since been responsible for several industry bills and changes to the liquor code that has impacted Pennsylvania’s bar trade.

Pennsylvania Tavern Talk is a YouTube channel that sheds light on political matters involving the industry at the state capitol and PLBTA news.

Those interested in subscribing to Pennsylvania Tavern Talk can do so by clicking here.

By in Latest News Comments Off on Confessions of an Insurance Rep: What We Look for Before Giving You a Price

Confessions of an Insurance Rep: What We Look for Before Giving You a Price

Avalon Thomas-Roebal

By Avalon Thomas-Roebal
Marketing Representative
Illinois Casualty Company

Illinois Casualty Company (ICC) has become a leading food and beverage carrier within a competitive marketplace since our inception in 1950. Our dedication to the industry has allowed ICC to understand the unique complexities of the niche and how to fine tune our rating structure to maintain profitability. Continued experience allows ICC to identify exposures distinctive to hospitality that other carriers likely do not recognize and has led to the development of a comprehensive rating system.

Some rating factors are quite standard. Other factors, which you may only see with ICC, have been applied because we are truly a specialty carrier. Though we can’t share our recipe for success, we can share how some ingredients may be more impactful than commonly thought. Knowledge of these exposures has allowed ICC to rate risks appropriately and provide consistent pricing to our insureds.

Property coverage premium continues to rise in all areas of insurance. What factors have a bigger impact on food and beverage accounts? Most carriers consider construction type and building age, but ICC also takes into consideration the years in business, onsite laundry facilities, seasonal operations, and security camera usage. These items all have rating relativities that modify property premium.

ICC is best known for our ability to profitably rate for liability coverage, especially liquor liability. Distinctive exposures in this product line may be unfamiliar to general carriers but second nature to those at ICC. For Businessowners Liability, years in business, prior management experience, and hours of operation are common factors, but ICC is not a common carrier. We have learned that the number of pool tables, buffet exposures, self-serve drink stations, cover charges, and trap door exposures also carry weight in determining pricing.

For example, a single pool table in a tavern is more likely to lead to an altercation than multiple pool tables. If you walk into a bar and notice a pool table, where do you see it? Typically, it is placed in a back corner, dimly lit, and commonly by restrooms and in a busy footpath. Those playing pool may encounter passerby bumps, spills, or patrons not respectful to the game environment. When alcohol is involved, or better yet, a $20 bet, these minor bumps and spills have a higher likelihood of becoming arguments. When establishments have multiple pool tables, the space tends to transform into a pool hall mindset with dedicated pool players and a designated playing environment, which in turn leads to more responsible participation.

Further experience in this niche has consistently shown that establishments located outside city limits have higher liability exposures. This is in part due to more patrons leaving by automobile and the establishment typically having lower drink prices, both factors that contribute to having a higher rating relativity. Insureds with buffets and/or self-service drink stations will have a higher probability of slip and falls. When customers serve themselves and spill something on the floor, they typically do not notify staff. If a server spills food or drink on the floor, they know it right away and can address it.

ICC’s Underwriting and Marketing Departments educate our agency partners on many of these exposures, while ICC’s Loss Control Specialists educate our insureds. Unique loss control recommendations based on our years of experience shine through during our inspection process. ICC requires a metal container to hold oily rags due to spontaneous combustion, we consider trap doors an undesirable exposure, and we follow the National Fire Protection Association requirements for fire suppression and hood and duct maintenance.

As an ICC Marketing Representative, I frequently field these common questions, “Why does Underwriting ask so many questions?” or “Why do your Loss Control Reps require additional recommendations?” Those answers are easy. We do so because ICC is a dedicated specialty carrier where we lead in industry knowledge, underwriting skill, and exposure identification, ultimately allowing ICC to provide consistent pricing for our insureds.

The rating factors ICC has developed demonstrate our deep understanding of the niche. We have led the industry in commitment and unparalleled service to hospitality, and our rating system and multifaceted underwriting approach reflects that dedication.

To find an ICC agent in your area, visit www.ilcasco.com/find-an-agent.

The above story was published in the November 2022 edition of Pennsylvania Beverage Media, the official magazine of the Pennsylvania Licensed Beverage and Tavern Association. Illinois Casualty Company is the PLBTA’s exclusive preferred vendor for liquor liability and other business insurance.

 

By in Latest News Comments Off on Survey Results: Small Business Taverns, Licensed Restaurants Severely Damaged Due To Pennsylvania’s COVID-19 Order

Survey Results: Small Business Taverns, Licensed Restaurants Severely Damaged Due To Pennsylvania’s COVID-19 Order

A survey of small business taverns and licensed restaurants indicates Pennsylvania could see a significant loss of locally owned establishments from closings as a result of the Commonwealth’s COVID-19 Orders.

The survey, conducted by the Pennsylvania Licensed Beverage and Tavern Association between August 25 and August 28, 2020, included 10 questions exploring financial difficulties.

Most troubling are indications that only 30 percent of the participating neighborhood-based establishments might survive the crisis. This is consistent with national surveys suggesting a possible loss of 70 percent of establishments.

In the PLBTA survey, participants were asked “Without any change to the Governor’s Order or financial assistance from the state and/or federal government, which best describes the future of your business after September 2020?”

Thirteen percent are already closed. Another five percent indicated they will close within a month, while 29 percent say they will likely close by the end of the year and 23 percent say they will likely close in 2021. Only 30 percent said they would not close.

Major layoffs and furloughs were also identified in the survey, again along the same lines as national studies. On average of those establishments participating in the survey, 13 employees per location lost their jobs as a result of COVID-19 Orders. When extrapolated across the industry, considering small business R and H license locations alone, about 109,200 Pennsylvania jobs were lost.

Financially, July 2020 proved to be troubling. The average establishment completing this survey lost $227,179 in July 2020 compared to July 2019.

Only 29 percent of the survey participants said they have not faced any cash flow problems. That suggests 71 percent have had difficulty paying bills including rent, utilities, and loan repayments.

“These results shouldn’t surprise anyone,” said Chuck Moran, executive director of the PLBTA. “When you’re limited to 25 percent indoor capacity and have seen increased expenses along with other difficulties due to state orders, you can expect a serious crisis to develop. This industry can’t sustain itself under these conditions. Changes in state restrictions along with survival and recovery financial packages are needed.”

The survey also explored other business-related difficulties including food and beer deliveries as well as supply deliveries for items such as paper products and cleaning items.

Of those participating in the survey, 89 percent were small business, single-location establishments, while eight percent were small businesses with more than one location. All own either an “R” or “H” liquor license. Three percent were clubs with club liquor licenses. No national or regional chains participated in the survey.

A total of 1,234 invitations to take the survey were sent statewide. There were 100 businesses that completed the survey during the three days. As a result, this survey has a 10% margin of error with a 95% confidence level when considering small business R and H licensees in Pennsylvania.

Working members of the media may request a copy of the results by emailing pataverns@pataverns.com. Please include your name and media affiliation.

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About the Pennsylvania Licensed Beverage and Tavern Association
The Pennsylvania Licensed Beverage and Tavern Association is a statewide association based in Harrisburg, representing small business taverns and licensed restaurants in the Commonwealth of Pennsylvania. The Association formed in 1941, reorganized in 2019, and today advocates for best practices and rights within the industry as well as best experiences for patrons.