Restaurants--with No Sale of Alcoholic Beverages--without Seating

What Does GL Code 16902 Cover?

ISO GL class code 16902 applies to restaurants that operate without the sale of alcoholic beverages and do not provide seating for customers. This classification primarily covers establishments focused on takeout, delivery, or counter service, where the primary exposure is related to food preparation and off-premises consumption. It distinguishes these operations from full-service restaurants with dining areas and alcohol sales, reflecting a different risk profile.

Who Uses This Class Code?

Businesses falling under this code include fast-food establishments, pizzerias primarily offering takeout and delivery, food trucks, ghost kitchens, and small cafes or delis that only offer counter service without customer seating. These operators focus on quick service and high volume, with minimal on-premises customer interaction.

Common GL Claims for This Class

Common general liability claims for this class include food poisoning or allergic reactions from prepared meals, slip-and-fall incidents by customers picking up orders at the counter, and property damage caused by delivery drivers during their routes.

Coverage Tips for Code 16902

• Ensure your policy includes product liability coverage, as a significant portion of your risk comes from foodborne illness or allergic reactions from off-premises consumption.
• Be mindful of your gross receipts reporting for audit purposes; accurate record-keeping is crucial as this is the basis for premium calculation.
• Implement robust food safety protocols and employee training to mitigate risks associated with food preparation and handling, which can lead to costly claims.
• Verify that any third-party delivery services you utilize carry their own adequate insurance and name your business as an additional insured to protect against vicarious liability.