Escalating liability insurance premiums are the most common concern we hear from our customers at Hospitality Insurance Agency. So while there’s not much we can do to make your concerns go away completely, we’d like to help you understand the two major factors driving premiums up in this market so you can adjust your expectations for your next renewal.
Factor 1:
In December 2011, a major carrier that insures close to 40% of the marketplace decided to exit certain portions of the market. This carrier cited a deterioration in the profitability of the hospitality segment as their reason for leaving the market. This carrier declared the following:

That effective immediately for new business, and effective April 1, 2012 for renewal business (there will be NO “grandfathering” of current risks), they do not wish to insure the following types of business:
• Venues with liquor receipts > 75% of total receipts
• Risks who have filed bankruptcy in the past five (5) years
• Insured whose primary business is a “nightclub” (including Gentlemen’s Clubs and Fraternal Clubs)
• Insureds employing bouncers or security
• Insureds allowing patrons under the age of 21
• Insureds with “mosh” pits or pyrotechnics
• Insureds with a mechanical bull or other riding devices
• Insureds with ANY prior Liquor Liability loss
• Insureds with ANY prior A&B loss
• Insureds with any License revocations or citations
The carrier did cite that they understand that this will put their current hospitality insureds in a difficult position in having to replace coverage but they felt they had no choice based upon the huge amount of liability claims paid out for Assault & Battery, Liquor Liability and Slip & Fall losses that they have incurred.

Factor 2:
The other major carriers in the market, also experiencing these same high levels of claims, have begun to increase premiums across the board to recoup these against these losses. Now once again I hear you: ”We haven’t had any losses at all!” However, the actuarial formulas used by all of the carriers pool together all of the risks in the hospitality marketplace, and they are using that as the basis for their across-the-board rate increases.

Summary:
In summary, the two factors cited above are creating what is called a “hard market.” Pricing is firm and going higher. The market has hardened, and we are warning all of our insureds to expect increases at renewal on their Liability premiums. Zero deductibles are being phased out and replaced with $5,000 minimum deductibles, and the carriers are placing sub-limits on the Assault & Battery (A&B) liabilities as well. If your business has not had prior claims, then there should not be a serious problem obtaining $1MM A&B cover limits at renewals. However, if you have had claims, carriers are moving A&B Limits down to $100k-$300k with $5k-$10k deductibles. As the insurance experts in the hospitality industry, we want to share our forecast for the weather ahead over the next two years: STORMY.

The insurance experts at Hospitality Insurance Agency on your side, and we will continually strive to provide you with the most comprehensive coverages for your premium dollars. If there’s anything we can do to help you better understand Liability premiums or if there are any other concerns you’d like to discuss, please call Pike at 1-800-940-9387 or check out our website at www.HospitalityIA.com.

Next month we plan to bring you the top five actions that you as a hospitality business owner can take to mitigate risks, decrease claims and losses, and, consequently, decrease your insurance premiums.

Until next month,

Pike Barber
Hospitality Insurance Agency

Astrophysicist Stephen Hawking spends a lot of time talking about the universe and what it might all mean but when the former “Newton Chair” holder of Cambridge University isn’t talking to sold out crowds he can be seen spending his time in sex and strip clubs.

The Daily Mail is reporting that the 70-year-old has visited various swinger clubs, sex clubs and strip clubs over the years including a Southern California swingers party which he was brought to by his nurses and assistants.

According to reports he paid for private shows with various naked dancers at the Freedom Acres Club in Devore which he visited on a “handful of occasions.”

According to one source:

“I’ve spoken to him on several occasions, and have shared drinks with people in his group.”

While Cambridge officials deny that Hawking has made “regular” stops at strip and sex clubs they do admit that he visited a club “once a few years ago with friends while on a visit to California.”

Stringfellow’s Gentlemen’s Club in London Owner Peter Stringfellow told the Daily Mail that he actually had a chance to meet Stephen Hawking at his club.

“I remember asking him if he’d like to have a conversation with me about the universe, or if he’d just like to watch the girls. The answer was quite simply: ‘The girls.’ “

So there you have it, when Stephen Hawking’s not busy trying to solve the mystery’s of our universe he’s doing what millions of other men do, he stares at naked women.

Are you surprised to learn that Stephen Hawking acts just like “one of the guys” when he’s not trying to work out the mysteries of the universe?

Our Favorite Radio Personality is Back on the Market single and here at Penthouse we are throwing him the Most legendary Divorce Party EVER!
in the upcoming weeks, The Penthouse Club will be conducting a search for his Dream date to escort him to his Divorce Party.

Do you have what it takes? if you answered yes; join The Penthouse Club in Tampa and Spice Boy Wednesday nights to Qualify for the big Finals for the Win-a-Dream date contest! $250 are up for grabs and a $100 certificate to our dining room. $1,000 grand prize will be awarded to the winner to be chosen on air by Bubba!

Listen to the Bubba the Love Sponge Show on 102.5 The Bone for further info or email the Penthouse Club at info@thepenthouseclubtampa.com

Hospitality Insurance Agency is proud to launch our new blog, the Champagne Room!  You’ll still be able to access all of the content from our old blog, but we’ll soon be bringing you additional content about the hospitality industry and insurance issues that may be affecting you.  Just like your customers receive special attention in the Champagne Room, we’ll be giving you special attention here. We hope that you’ll find our new blog to be a valuable resource and just another reason why Hospitality Insurance Agency is your best resource for bar insurance, nightclub insurance, gentleman’s club/strip club insurance, hotel/motel insurance, and restaurant insurance.  If there’s anything we can do to help you, please don’t hesitate to contact us!

Denver, Colorado – A strip club advertisement was sent to a 13 year olds phone and the father is striking back it is “inappropriate.” Diamonds Cabaret strip club sent a text message to a Matt Warta’s 13 year old son basically stating; would you like to come and celebrate Osama Bin Ladens Death, and that there were free drafts as well as the cover charge. Matt Warta is shocked and ashamed that his son is not protected by these type of messages. He called the strip club but did not get anywhere, the club did agree to take his sons name off of the call list.

What do you think about this!? This13 year old gets a text from a strip club. What 13 year old kid needs a phone? If your dropping your 13 year old off somewhere where you are not going to be, there should be a parent or adult with a phone around. So this 13 year old has a phone with statistics show he probably has access to the internet. I’m thinking that he more than likely signed up to the list hoping to get good picture advertisements of strippers. Being that he is only 13 years old, he forgot his phone down in the kitchen and when the text came across his dad seen it first. Now is blaming the strip club that his kid got the text, when the kid more than likely signed up for the text. He should not have needed a cell phone until he was at least 15 years old. What are your thoughts!?

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In Louisville, KY there is a new strip club ordinance that went into effect about 3 months ago. The ordinance requires that dancers are to be covered up, and it imposes strict rules on the club owners. However, the police of the town have nothing better to do with their time than come up with an undercover investigation. They found semi-nude dancers dancing with peers just inches away, Lap Dances were being advertised 2 for 40 dollars. Customers were tipping the semi-nude dancers, all which breaks the ordinance rules. So the the city said that they are serious about enforcing this rule. Fines could be from $100-1,000 dollars, and the big bad police said that they are not “scured” to shut down any club for excessive fines.

What do you think about this!? It is unbelievable that the police in the town of Louisville, KY have nothing better to do than set-up undercover investigations on strip clubs. I could see if they were major drug operations or something along those lines, but the police are making a big deal over “SEMI-NUDE” dancers getting tipped!!!!! IT’S 2011, strip clubs are not going away!! I went to LOUISVILLE, KY website for wanted Sex Offenders and I found a picture of this man, (WITH MANY MORE), so I thought I would post it for anyone who reads this. Hopefully the Louisville, Kentucky Police Department reads this. Do not worry about the damn strippers getting tipped for being SEMI-NUDE when this man is on the loose!!!! What are your thoughts!?

James E. Gunterman

Address: 3416 Kramers Lane, Apt #21

Date of Birth: 11/8/53

Sex: Male

Aliases: None

Height: 5’11″

Weight: 250

Hair Color: Brown

Eye Color: Brown

Race: Caucasian

Offenses: Sexual Abuse 1st Degree
(19 counts)
Victim less than 14
Failure to Comply with Sex Offender Registry

Sometime it just sounds right! Billy Joel Dwain Ferguson, 26, was caught urinating on the side of a strip club building. When the police tried to put him into the backseat of the car he was reported to be combative. Ferguson was charged with urinating on certain property and injury to city personal property. There was a 2,000 dollar bond and he spent the night in jail. The police said that the estimated damage to the car was $400.00 dollars.

What do you think about this!? This guy went out and got arrested for urinating in a back alley behind a strip club. Then he doesn’t act right when he gets arrested for it. However, I think its a bit ridiculous that you would get arrested, maybe a ticket for $50.00, but getting arrested seems a bit excessive. What are your thoughts!?

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In North Carolina, investigators that are part of the Wilmington Fire Department said that a fire broke out at a Gentlemen’s club early Thursday morning. The said that the fire was intentionally set by somebody and was not an accident. However, the firerighters were able to contain the flames on the scene. The club that was started on fire is called the Private Dancer Gentlemen’s Club, which is in a beach town in North Carolina. No injuries were reported, but there was major damages down to the content and the property. The incident is now considered at criminal investigation, so there is no other details released at this time.

What do you think about this!? The Fire Department said that somebody actually started the fire. There are many suspects that could be involved. Let’s hope that everybody finds hard evidence before making a bunch of arrests. Situations like these can cause major scenes and bad media. Also, another question to ask yourself if you are a club owner is would you be covered if this happened to you!?!?!?! If somebody started your club on fire, or there was a fire by accident would you be insured to handle the situation?? Click the Logo below and get the best coverage on your strip club premiums!!!! What are your thoughts!?

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Near Denver, CO the strip club Fantasy was fined $1,261.00 dollars for violating a state liquor law. According to the newspaper the violation was for a Female Exotic Dancer that performed oral sex on for men and one women in January. Kevin Eardley is the owner of the strip club and told the liquor board that he fired the dancer. He also came up with a policy that the dancer are not allowed to touch the customers. The state liquor law states that it is illegal for employees of a business with a liquor license to engage in or stimulate sex acts in the workplace.

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Are you a club owner that is going to the Gentlemen’s

Club Owners EXPO 2011 in Vegas!? If so, then you better

make sure that you register as early as possible!! For the the

first 30 club owners that register for the EXPO, get a

FREE PASSENGER BADGE!!

Ed Publications is giving one of your best Exotic Entertainers that enters the Bikini Contest a free ticket. The Bikini Contest starts at the Opening Night Party on Monday August 22, 2011. The prize if your entertainer wins is $1,000 dollars!!!!! The party is held at the Mirage Pool. If you would like to register to try and get this badge call Teresa Tearno at 727-726-3592. Click on Ed Publications at the top or “Generation Next” Below for all the information!!!!