What it does
BP 07 78 is the ISO restaurant class endorsement. ISO describes it as modifying Section I – Property and Section II – Liability to include specialized coverages tailored to restaurant risks. Selections and limits go on the Restaurants Supplemental Schedule, BP DS 03.
Who needs it
Restaurants that fit ISO's BOP rules, which vary by type: limited cooking (up to 7,500 square feet, 75 seats, beer and wine no more than 25% of sales), quick service (7,500 square feet, 150 seats, beer and wine up to 25%), full service (7,500 square feet, 150 seats, alcohol up to 50%), and specialty types such as fine dining (alcohol up to 75%), brew pubs and wine bars.
Key provisions
- The 04 07 edition, for example, added Section I additional coverages for reward payments, brands and labels, ordinance or law for equipment (including refrigerant reclaim and non-CFC retrofit costs), lock replacement and spoilage of perishable stock.
- A companion endorsement, Restaurants – Loss or Damage to Customers' Autos (Legal Liability Coverage) (BP 07 79), covers valet or parking exposures.
- Alaska and New York use state versions.
Quoting and selling notes
- Confirm cooking type, seats, square footage and liquor sales percentage – they decide eligibility and class.
- Add liquor liability (BP 04 89 or an exclusion amendment) when alcohol is served; the base form excludes it for insureds in the alcohol business.
- Package with spoilage (BP 04 15), food contamination (BP 04 31), utility services (BP 04 57) and a hood suppression protective safeguard (BP 04 30).
