Liquor Liability Information
Deductibles or SIRs
There are no deductibles of SIRs. The coverage provided is first dollar.
Policies are generally written on an annual basis, but a short-term policy period is usually acceptable. We prefer our policy term to be concurrent with the account’s General Liability policy period; however, this is not mandatory. No policy period at the time of binding will be written for a term in excess of one year.
General Liability Requirement
We require that every account we write carry General Liability coverage with limits at least equal to our Liquor Liability limit. In order for us to bind coverage, we must be given the General Liability carrier’s name, limit and policy period.
New Business and Renewal Submissions (Except Special Events)
If a submission is received on a fully completed Centrex Liquor/General Liability Application, we usually do not have to ask for additional information. If the Centrex App is not fully completed, we may have to ask for some additional information.
If a submission is received on a Liquor Liability Application other than a Centrex Liquor/General Liability App (i.e., USLI, Scottsdale, LSI/CNA, Acceptance, Lexington, etc.), we will accept the submission but we will usually have to ask for some additional information.
Centrex must receive a fully completed and signed Centrex Liquor/General Liability Application within 15 days of binding on a risk.
Where appropriate, a Centrex Hall Rental/Caterers Supplement or a Centrex Multi-Location Supplement (for multi-location store risks such as convenience stores, grocery stores, liquor stores, etc.) should be included with the new business or renewal submission.
Special Event Submissions
If a Special Event submission is received on a fully completed Centrex Special Event Liquor Liability Application, we typically do not have to ask for additional information. If the Centrex Special Event App is not fully completed, we may have to ask for some additional information
If a Special Event submission is received on a USLI Main Event Liquor Liability Application, whether fully completed or not, we will accept the submission but we will usually have to ask for some additional information.
If a Special Event submission is received on other than one of the above applications, we usually decline the submission because of an unacceptable application.
Centrex must receive a fully completed and signed Centrex Special Event Liquor Liability Application within 15 days of binding on a risk.
Please note that our service is significantly improved if a submission includes the proposed effective date. Submissions without proposed effective dates are considered to be “No Date” submissions and are handled less expeditiously than submissions with proposed effective dates.
All applications and supplements should be legible and completed in full. Except for multi-location store risks where a Multi-Location Supplement can be used in conjunction with one Liquor Liability Application, a separate application is required for each location to be insured. For example, if the risk is a ten-location restaurant chain, a separate Liquor Liability Application is required for each location.
For submissions on risks (other than bars, country clubs, hotels, and restaurants), that have catering and/or hall rental operations (i.e., caterers, banquet halls, clubs with hall rental operations, etc.), a Centrex Hall Rental/Caterers Supplement is required.
Centrex will entertain submissions received by (1) e-mail, (2) facsimile, (3) mail, or (4) electronic submission from the online application completion functionality.
Centrex quotations are valid for 45 days from the date that the Centrex Underwriter quoted the risk. Any request to bind coverage after this 45-day period is subject to re-quotation at the Centrex Underwriter’s discretion. The Centrex Underwriter will provide a written quotation or declination on each risk submitted.
Clearance/Reservation of Accounts
A new account will generally be reserved for the first Producer who provides a substantially complete submission to Centrex. However, upon request, we may reserve a risk for 10 to 15 days. Duplicate quotes will NOT be given to other Producers.
Renewals will only be quoted for the Producer who placed the expiring risk with Centrex.
We will honor Broker of Record Letters but only for new business and renewals. On in force policies, we do not accept BORs. We will always give the holding Producer an opportunity to provide a rescinding Broker of Record Letter.
If Centrex determines that a Producer appears to be only blocking Centrex as a market, we reserve the right to make an exception to the above guidelines.
Rating, Minimum Premiums and Audits
The Centrex Underwriter will individually rate each risk. Except for special event risks, the final quote will always include a rate per $100 of alcohol sales, which will be subject to a minimum and deposit premium equal to the amount of the quoted premium. The quote is also subject to a Minimum Earned Premium of 25% (higher in some cases) of the advance premium if the insured cancels the policy for any reason. The Minimum Earned Premium will be specified in the quotation.
With respect to all bound accounts, generally each designated Insured Premises will be inspected within approximately 60 days after effective date. Centrex will arrange all inspections and the Producer will have no involvement in or incur any expenses in connection therewith.
We reserve the right to take appropriate action if the inspection report differs materially from the information provided in the application. We strongly recommend that you advise your retail agents that each bound account will be inspected.
Policy or Inspection Fee
In addition to the premium, there is usually a Policy Fee (in some jurisdictions, this Fee is called an Inspection Fee or an Engineering/Audit Fee) of approximately $150 per location for each account bound, with the exception of certain classes of multi-location store risks where only a representative sample of the locations must be inspected. The Policy Fee is not subject to prorating in the event of cancellation. The Policy Fee is used by Centrex to offset the expenses involved in inspecting and auditing each risk. The Centrex Underwriter will specify the Policy Fee at the time of quotation on each risk.
Binding of Business
No risk is bound, whether quoted by Centrex or not, until actually bound by a Centrex Underwriter. A formal confirmation of binding will be issued. Generally, there is no backdating of binders. Once an account is bound with Centrex, the account is subject to the Minimum Earned Premium in the event of cancellation by the insured thereafter. No flat cancellations are permitted unless the producer advised Centrex on or before the inception date bound by Centrex.
Payment is by Centrex’s monthly statement and must be received by Centrex within 30 days after the close of the month in which the coverage was effective, irrespective of whether the policy was issued or not and/or whether or not the producer has collected the premium.
Multi-state risks are not included in one quotation and are not written on one policy. A separate quotation is provided for all locations situated in each state. If coverage is bound, a separate policy will be issued for all locations situated in one state. For example, if the risk is a 10-location restaurant chain with 6 locations in Tennessee and 4 locations in Georgia, two quotations will be provided, one quotation for the Tennessee locations and one quotation for the Georgia locations. Similarly, one policy would be issued covering all of the Tennessee locations and a separate policy would be issued covering all of the Georgia locations. A separate surplus lines filing would have to be made in each of the two states.
Surplus Lines Filings
The insurer is an approved non-admitted carrier in all of the states included in this program, except for New York where it is an admitted carrier that operates in the New York Free Trade Zone for Liquor Liability. It is the responsibility of the Producer to comply with the surplus lines law of each state in which the Producer writes business with Centrex. Such Producer’s responsibility includes the filing of affidavits and the collection and payment of surplus lines premium taxes, except on risks located in the State of New York.
The state in which the designated Insured Premises is located will be the surplus lines state in which the Producer must file the surplus lines affidavit and pay the surplus lines premium tax, except for the State of New York. The binder issued by Centrex will confirm the surplus lines state and the surplus lines premium will be reported accordingly to the insurance carrier.
It is the Producer’s responsibility to maintain renewal lists and to issue renewal solicitation letters to their retail agent sub-producers since Centrex does not transact business directly with such sub-producers.
The Producer should report all Liquor Liability claims or incidents that may give rise to a Liquor Liability directly to Centrex as soon as is reasonably possible. Lawsuit papers should also be forwarded to Centrex immediately due to the time constraints involved in replying to the lawsuit.