Business income losses can be confusing and crippling times for insureds, especially when trying to get a business back up and running. ICC recognizes that tips are a large component to a bar or restaurant worker’s income. If an insured can verify monetary tips during the investigation portion of a business income claim, these tips are considered verifiable income and can be claimed as a portion of the loss.
Recently, ICC received a property claim where an electrical fire caused the tenant, our insured, to close for two months. Along with property damage from the fire, the insured suffered a significant business income loss.
Due to the fine-dining nature of this insured, most customers paid and tipped by card, which showed on the receipt. Having the tips written on the receipt was beneficial because the insured was able to provide this information to ICC and include the tips as a source of verifiable income under ordinary payroll expenses.
Without this documentation, the insured would not have been able to collect as much during final recovery. This is another example of ICC’s expertise in the hospitality industry and the actions we take to protect and service our insureds at claim time.
Ask your agent for more information about this value-added coverage from ICC. Not insured with ICC? Contact an agent in your area by using our Find an Agent search.
