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You operate a restaurant in the st ate a restaurant in the state of Virginia. The restaurant offers a diverse menu of locally sources pes.

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You operate a restaurant in the st ate a restaurant in the state of Virginia. The restaurant offers a diverse menu of locally sources pes. The food industry has awarded our restaurant with many culinary achievement awards ars. In addition to fine food, vour facilities include an upscale sports bar which serves alcoholic stages in a bar/lounge environment. You employ a head chef and six other food preparation start. Your locati our location employs wait staff, dishwashers, hostesses and hosts, and managers. Operations include deep fat frying, cooking over open flames with woks cooking over open flames with woks and saut pans. Your kitchen is equipped with proper Ansul fire suppression systems over all active cooking surfaces. You also have a walk in freezer and a walk in refrigerator. Fresh fruit, vegetables, meat and seafood are received weekly. You also have banquet and event facilities that you rent for events such as business meetings, weddings, parties and celebrations. You provide food and alcoholic beverages for these events. The only food you do not produce in house are bakery goods that you purchase from a local supplier. Janitorial services are provided by a vendor who does that work at night while your facilities are closed. Cash receipts are taken to the bank once per week at each location and stored in a safe and the manager's office between deposits. Revenue $1,800,000 Building $650,000 Business Personal Property Furniture, Fixtures Raw Material, Stock Equipment and supplies Finished product/Inventory Other $500,000 $120,000 $250,000 SO 2015 Masonry Year Built Construction Protection Class Private Protection Occupancy Adjacent Adjoining wiring/plumbing update ansul, sprink, alarm, fire ext. restaurant w/o dance floor retail shopping and gas station None 2015 3. The actual values of Building and Business Personal Property are listed on the case overview, but instead of buying this amount your policy only covers: $400,000 Building $500,000 Business Personal Property There is an 80% coinsurance Clause and a $1,000 per occurrence deductible Please calculate the amount of coinsurance penalty (if any) that would apply to a $5,000 covered loss to Business Personal Property. Show how you calculated this: 5. Using the Income Statement included in your case please calculate the amount of Business Income and Extra Expense coverage you recommend should be included on the insurance policy. Specifically, how much of what coverage would you recommend, and why. What coinsurance percentage would you use (explain)? What assumptions and unknowns exist and what do you think should be done given that you don't/won't have all of these facts at the time decisions are made. Note: you don't have hard data - what I am looking for is your thought processes and your estimates of what you think a reasonable response may be. You operate a restaurant in the st ate a restaurant in the state of Virginia. The restaurant offers a diverse menu of locally sources pes. The food industry has awarded our restaurant with many culinary achievement awards ars. In addition to fine food, vour facilities include an upscale sports bar which serves alcoholic stages in a bar/lounge environment. You employ a head chef and six other food preparation start. Your locati our location employs wait staff, dishwashers, hostesses and hosts, and managers. Operations include deep fat frying, cooking over open flames with woks cooking over open flames with woks and saut pans. Your kitchen is equipped with proper Ansul fire suppression systems over all active cooking surfaces. You also have a walk in freezer and a walk in refrigerator. Fresh fruit, vegetables, meat and seafood are received weekly. You also have banquet and event facilities that you rent for events such as business meetings, weddings, parties and celebrations. You provide food and alcoholic beverages for these events. The only food you do not produce in house are bakery goods that you purchase from a local supplier. Janitorial services are provided by a vendor who does that work at night while your facilities are closed. Cash receipts are taken to the bank once per week at each location and stored in a safe and the manager's office between deposits. Revenue $1,800,000 Building $650,000 Business Personal Property Furniture, Fixtures Raw Material, Stock Equipment and supplies Finished product/Inventory Other $500,000 $120,000 $250,000 SO 2015 Masonry Year Built Construction Protection Class Private Protection Occupancy Adjacent Adjoining wiring/plumbing update ansul, sprink, alarm, fire ext. restaurant w/o dance floor retail shopping and gas station None 2015 3. The actual values of Building and Business Personal Property are listed on the case overview, but instead of buying this amount your policy only covers: $400,000 Building $500,000 Business Personal Property There is an 80% coinsurance Clause and a $1,000 per occurrence deductible Please calculate the amount of coinsurance penalty (if any) that would apply to a $5,000 covered loss to Business Personal Property. Show how you calculated this: 5. Using the Income Statement included in your case please calculate the amount of Business Income and Extra Expense coverage you recommend should be included on the insurance policy. Specifically, how much of what coverage would you recommend, and why. What coinsurance percentage would you use (explain)? What assumptions and unknowns exist and what do you think should be done given that you don't/won't have all of these facts at the time decisions are made. Note: you don't have hard data - what I am looking for is your thought processes and your estimates of what you think a reasonable response may be

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