ISO Expands Market-Segments Insurance Program with Specialized Coverages for Restaurants and Supermarkets

NEW YORK, Oct. 30, 2000 — Insurance Services Office, Inc. (ISO) has expanded its Market Segments insurance line by adding Restaurants and Supermarkets to the program.

The two new ISO specialty-insurance products provide enhanced property and liability coverages for Restaurants and Supermarkets as well as optional endorsements for additional coverage. Coverages for restaurant and supermarket risks are currently provided through commercial package policies or monoline policies.

The ISO Market Segments line of business, launched last year with Auto Service Risks, is advisory in nature and offers "wrap-around" endorsements that modify one or more of ISO's monoline coverage forms — the basis for specific, specialized coverage of niche-market businesses. The ISO Market Segments line incorporates in one endorsement the main coverages these risks typically require, while offering additional coverages through optional endorsements.

ISO has filed the policy forms, rules and loss costs for both the Restaurants and Supermarkets programs for approval with insurance regulators in 47 jurisdictions, with a May 1, 2001, effective date.

The Restaurant program's coverage is tailored to a wide range of restaurant risks, from the smaller shops — for example, coffee shops and delis — to family-style restaurants to upscale, fine-dining establishments. The Supermarket program is designed for stores that primarily sell grocery products and occupy a total area of 3,000 square feet or more, with $500,000 or more in annual sales.

"ISO developed specialized coverages for restaurant and supermarket establishments, so insurers that are growing by targeting high-potential market niches can adopt our 'ready-to-use' programs," said Domenick J. Yezzi, Jr., ISO's vice president - specialty commercial lines. "We want to make it even easier and more convenient for insurers to focus on what they do best — provide their customers with more value-added products."

Common Property and Liability Coverage Enhancements

The mandatory wrap-around endorsements for both the Restaurants and Supermarkets programs modify the ISO Commercial Property Building and Personal Property and Commercial General Liability Coverage Forms as well as the Causes of Loss - Special Form. Common to both programs are enhancements to the following property coverages:

  • Debris removal;
  • Fire department service charge;
  • Money and securities;
  • Fire extinguisher systems expense;
  • Reward payment;
  • Money orders and counterfeit paper currency;
  • Forgery or alteration;
  • Outdoor signs;
  • Employee dishonesty;
  • Brands and labels;
  • Ordinance or law (equipment coverage);
  • Lock replacement due to theft or other loss to keys;
  • Food contamination;
  • Personal effects and property of others;
  • Valuable papers and records;
  • Accounts receivable;
  • Property off premises; and
  • Outdoor property.

A basic coverage limit is provided for each category. Optional higher limits are also available for many of these.

The liability component of each program provides errors and omissions coverage for failure to deliver or misdelivery of items, with an annual aggregate limit of $10,000, subject to a $250 per-loss deductible. Also common to both programs is coverage to indemnify restaurants and supermarkets against liability for expenses for the withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of items sold. The indemnity coverage limit for each program is $25,000 for any annual period, with a $250 per-loss deductible.

Both ISO programs provide additional coverage through three optional endorsements: mechanical breakdown; hired auto and non-owned auto liability insurance; and loss or damage to customers' automobiles. The supermarkets program offers a fourth optional endorsement for extortion coverage.

For more information on pricing and participation in ISO's Restaurant and Supermarkets Market Segments programs, call ISO Customer Service toll-free at 800-888-4476, or by e-mail at

Release: Immediate

Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500 /

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