French King Restaurant had been in business for over 30 years when a fire destroyed it. First, its Kidde dry chemical fire suppression system failed to function. Then its insurance policy failed to function. Interstate Fire and Casualty declared that French King failed to maintain its protective safeguards as policy conditions required.

French King argued that the policy conditions were ambiguous and that the loss should be covered.

The court agreed that the term was ambiguous but still denied coverage.

Click here to see why.

French King knew that its Kidde system was not functioning properly and had received letters about it from both Kidde and the city building inspector. Two exclusions eliminated coverage in addition to the protective safeguards condition. While French King was not covered, because of the lack of protective safeguards, it still continued to pay premiums

Going bare for certain coverages may be a wise decision for the client who wants to save money but only after it determines and examines the options and their potential consequences.

Click here to review an emarketing article you might want to consider sharing with your clients who are interested in reducing coverage.

After a significant loss like French King sustained, neighbors often pay more attention to their own insurance coverage. This could be an excellent time to contact them and offer your expert advice and counsel.

Click here for a letter you might consider sending.

The “How to Insure” training courses in Producer Online can get you started. Becoming an expert in insuring restaurants takes years but you will never be one if you don’t start. It is a very interesting industry with a significant premium base. The “How to Insure” Restaurants course can get you started but only you can decide how far you want to go.

Click here for instructions in signing up for your "How to Insure" course..