Real-World Scenario: Restaurant BOP Rating

This comprehensive walkthrough demonstrates how to configure and rate a Business Owners Policy (BOP) for a restaurant using the tiger Rating Engine. We’ll follow the complete process from initial setup to final premium calculation.

The Business Case

Client Profile

Screenshot Placeholder: Client information card showing “Mario’s Italian Bistro” with photo of restaurant exterior, address, and business details

Mario’s Italian Bistro needs insurance coverage:

Business Information:
├── Name: Mario's Italian Bistro
├── Type: Full-service restaurant with bar
├── Location: 1234 Main Street, Chicago, IL 60601
├── Territory: 001 (Downtown Metro)
└── Established: 2018

Physical Details:
├── Building Value: $1,250,000
├── Contents/Equipment: $350,000
├── Square Footage: 4,500 sq ft
├── Seating Capacity: 120
├── Kitchen Equipment: Commercial grade
└── Building Class: B (Joisted Masonry)

Operations:
├── Annual Revenue: $2,500,000
├── Employees: 25 (10 FT, 15 PT)
├── Hours: 11 AM - 11 PM Daily
├── Alcohol Sales: 30% of revenue
├── Delivery: Third-party only
└── Special Features: Outdoor seating, live music weekends

Coverage Requirements

The restaurant needs:

Part 1: Product Configuration

Step 1: Create Restaurant BOP Product

Screenshot Placeholder: Product creation form filled with “RESTAURANT_BOP” code and “Restaurant Business Owners Policy” name

Navigate to Admin → Products → Add Product:

Product Details:
├── Product Code: RESTAURANT_BOP
├── Product Name: Restaurant Business Owners Policy
├── Description: Comprehensive coverage for restaurants including
│                property, liability, and industry-specific coverages
├── Effective Date: 2025-01-01
├── End Date: [Leave blank]
└── ☑ Is Active

Click Save and continue editing

Step 2: Define Rating Factors

Screenshot Placeholder: Rating factors list showing all restaurant-specific factors with their types and validation rules

Create these rating factors:

Property Factors:

1. building_value
   ├── Type: Decimal
   ├── Required: Yes
   ├── Min: 100,000
   └── Max: 10,000,000

2. contents_value
   ├── Type: Decimal
   ├── Required: Yes
   ├── Min: 25,000
   └── Max: 2,000,000

3. building_class
   ├── Type: Choice
   ├── Options: A, B, C, D, E
   └── Required: Yes

Business Factors:

4. annual_revenue
   ├── Type: Decimal
   ├── Required: Yes
   ├── Min: 100,000
   └── Max: 25,000,000

5. seating_capacity
   ├── Type: Integer
   ├── Required: Yes
   ├── Min: 10
   └── Max: 500

6. cuisine_type
   ├── Type: Choice
   ├── Options: Italian, American, Asian, Mexican, Fine Dining, Fast Casual
   └── Required: Yes

Risk Factors:

7. serves_alcohol
   ├── Type: Boolean
   └── Required: Yes

8. alcohol_sales_percentage
   ├── Type: Decimal
   ├── Required: If serves_alcohol = True
   ├── Min: 0
   └── Max: 100

9. has_deep_fryer
   ├── Type: Boolean
   └── Required: Yes

10. has_hood_system
    ├── Type: Boolean
    └── Required: Yes

Step 3: Create Rating Tables

Table 1: Base Property Rates

First, create the table structure:

Screenshot Placeholder: Django admin “Add rating table” form showing Table Code: RESTAURANT_BASE_PROP, Table Name: Restaurant Base Property Rates, Product: RESTAURANT_BOP selected

1. Navigate to Admin → Rating Tables → Add Rating Table

2. Enter table details:

   Table Code: RESTAURANT_BASE_PROP
   Table Name: Restaurant Base Property Rates
   Description: Base property rates per $100 by territory and cuisine type
   Product: RESTAURANT_BOP
   Dimensions: territory, cuisine_type
   

3. Click Save and continue editing

Now add the rate values. You have three options:

Option A: Use Auto-Generate Permutations (Recommended)

Screenshot Placeholder: Auto-generate dialog with Territory checkboxes (001, 002, 003), Cuisine Type checkboxes (Italian, American, Asian, Mexican), Default Rate: 0.75, and “Generate” button

1. Click Generate Permutations button

2. Select dimension values: - Territory: ☑ 001 ☑ 002 ☑ 003 - Cuisine Type: ☑ Italian ☑ American ☑ Asian ☑ Mexican

3. Set default rate: 0.75

4. Click Generate (creates 12 value records)

5. Edit individual values as needed

Option B: Add Individual Values

Screenshot Placeholder: “Add rating table value” form with Table: RESTAURANT_BASE_PROP, Territory dropdown: 001, Cuisine Type dropdown: Italian, Rate Value: 0.85, Effective Date: 2025-01-01

For each combination, click Add Rating Table Value and enter:

Example entries (Base Property Rates per $100):

Territory: 001, Cuisine: Italian  → Rate: 0.85
Territory: 001, Cuisine: American → Rate: 0.75
Territory: 001, Cuisine: Asian    → Rate: 0.95
Territory: 001, Cuisine: Mexican  → Rate: 0.80

Territory: 002, Cuisine: Italian  → Rate: 0.70
Territory: 002, Cuisine: American → Rate: 0.65
Territory: 002, Cuisine: Asian    → Rate: 0.80
Territory: 002, Cuisine: Mexican  → Rate: 0.70

Territory: 003, Cuisine: Italian  → Rate: 0.60
Territory: 003, Cuisine: American → Rate: 0.55
Territory: 003, Cuisine: Asian    → Rate: 0.70
Territory: 003, Cuisine: Mexican  → Rate: 0.60

Option C: Bulk Import via CSV

Screenshot Placeholder: Import dialog with “Choose File” button, selected file “restaurant_base_rates.csv”, preview showing first few rows, and “Import” button

1. Create CSV file with this format:

   table_code,territory,cuisine_type,rate_value,effective_date
   RESTAURANT_BASE_PROP,001,Italian,0.85,2025-01-01
   RESTAURANT_BASE_PROP,001,American,0.75,2025-01-01
   RESTAURANT_BASE_PROP,001,Asian,0.95,2025-01-01
   RESTAURANT_BASE_PROP,001,Mexican,0.80,2025-01-01
   RESTAURANT_BASE_PROP,002,Italian,0.70,2025-01-01
   RESTAURANT_BASE_PROP,002,American,0.65,2025-01-01
   RESTAURANT_BASE_PROP,002,Asian,0.80,2025-01-01
   RESTAURANT_BASE_PROP,002,Mexican,0.70,2025-01-01
   RESTAURANT_BASE_PROP,003,Italian,0.60,2025-01-01
   RESTAURANT_BASE_PROP,003,American,0.55,2025-01-01
   RESTAURANT_BASE_PROP,003,Asian,0.70,2025-01-01
   RESTAURANT_BASE_PROP,003,Mexican,0.60,2025-01-01
   

2. Click Import CSV and upload file

Table 2: Liability Rates

Create table RESTAURANT_GL_RATES:

Screenshot Placeholder: Django admin form for RESTAURANT_GL_RATES with dimensions seating_range and alcohol_category

1. Create the table structure:

   Table Code: RESTAURANT_GL_RATES
   Table Name: Restaurant GL Rates
   Description: General liability rates per $1,000 revenue
   Dimensions: seating_range, alcohol_category
   

2. Add values (using any method above):

   GL Rates per $1,000 Revenue:
   
   Seating: 1-50,   Alcohol: None     → Rate: 5.50
   Seating: 1-50,   Alcohol: Under30  → Rate: 7.25
   Seating: 1-50,   Alcohol: Over30   → Rate: 9.50
   
   Seating: 51-100, Alcohol: None     → Rate: 6.00
   Seating: 51-100, Alcohol: Under30  → Rate: 8.00
   Seating: 51-100, Alcohol: Over30   → Rate: 10.50
   
   Seating: 101-200, Alcohol: None    → Rate: 6.75
   Seating: 101-200, Alcohol: Under30 → Rate: 9.00
   Seating: 101-200, Alcohol: Over30  → Rate: 12.00
   

Table 3: Equipment Factors

Create table RESTAURANT_EQUIP_FACTORS:

Screenshot Placeholder: Django admin form for RESTAURANT_EQUIP_FACTORS with dimension equipment_type

1. Create the table:

   Table Code: RESTAURANT_EQUIP_FACTORS
   Table Name: Restaurant Equipment Factors
   Description: Risk factors for kitchen equipment
   Dimensions: equipment_type
   

2. Add factor values:

   Equipment Risk Factors:
   
   Equipment Type: deep_fryer_yes  → Factor: 1.15
   Equipment Type: deep_fryer_no   → Factor: 1.00
   Equipment Type: hood_system_yes → Factor: 0.95
   Equipment Type: hood_system_no  → Factor: 1.20
   

Viewing Table Values

Screenshot Placeholder: Django admin list view showing Rating Table Values with columns for Table, Dimensions (as JSON), Rate Value, Effective Date, with filter sidebar

After entering all values, you can view and manage them:

1. Go to Admin → Rating Table Values

2. Filter by table name to see all values

3. Use inline editing to adjust rates

4. Export to CSV for documentation

Step 4: Create Formulas

Screenshot Placeholder: Formula list showing execution order, formula names, types, and status

Create calculation formulas in order:

Formula 1: Lookup Base Property Rate

Type: Table Lookup
Table: RESTAURANT_BASE_PROP
Dimensions: territory, cuisine_type
Result Variable: base_prop_rate
Execution Order: 1

Formula 2: Calculate Building Premium

Type: Python Expression
Expression: (building_value / 100) * base_prop_rate * building_class_factor
Result Variable: building_premium
Execution Order: 2

Formula 3: Calculate Contents Premium

Type: Python Expression
Expression: (contents_value / 100) * base_prop_rate * 0.8
Result Variable: contents_premium
Execution Order: 3

Formula 4: Lookup GL Rate

Type: Table Lookup
Table: RESTAURANT_GL_RATES
Dimensions: seating_range, alcohol_category
Result Variable: gl_rate
Execution Order: 4

Formula 5: Calculate GL Premium

Type: Python Expression
Expression: (annual_revenue / 1000) * gl_rate
Result Variable: gl_premium
Execution Order: 5

Formula 6: Apply Equipment Factors

Type: Factor Multiply
Factors: building_premium, deep_fryer_factor, hood_system_factor
Result Variable: adjusted_building_premium
Execution Order: 6

Formula 7: Calculate Total Premium

Type: Python Expression
Expression: adjusted_building_premium + contents_premium + gl_premium +
            liquor_premium + business_income_premium
Result Variable: total_premium
Execution Order: 10

Part 2: Performing the Rating

Step 1: Access the Calculator

Screenshot Placeholder: Calculator page with “RESTAURANT_BOP” selected in product dropdown

1. Navigate to Calculator from main menu

2. Select RESTAURANT_BOP from product dropdown

3. Set Effective Date to today’s date

Step 2: Enter Basic Information

Screenshot Placeholder: Basic information section with fields filled for Mario’s Italian Bistro

Fill in basic details:

Policy Information:
├── Effective Date: 2025-02-01
├── External Reference: QUOTE-2025-MAR-001
└── Insured Name: Mario's Italian Bistro

Location:
├── Address: 1234 Main Street
├── City: Chicago
├── State: IL
├── ZIP: 60601
└── Territory: 001 [Auto-populated]

Step 3: Enter Property Values

Screenshot Placeholder: Property section showing building value $1,250,000, contents $350,000, with total insurable value displayed

Enter property information:

Property Values:
├── Building Value: $1,250,000
├── Contents Value: $350,000
├── Building Class: B - Joisted Masonry
├── Year Built: 1995
├── Last Renovation: 2018
└── Square Footage: 4,500

Total Insurable Value: $1,600,000

Step 4: Enter Business Operations

Screenshot Placeholder: Operations section with revenue, employees, seating capacity, and cuisine type fields

Provide operational details:

Business Operations:
├── Annual Revenue: $2,500,000
├── Cuisine Type: Italian
├── Seating Capacity: 120
├── Number of Employees: 25
├── Years in Business: 6
└── Hours per Week: 77

Step 5: Enter Risk Characteristics

Screenshot Placeholder: Risk factors section with checkboxes and percentage fields for alcohol, equipment, and safety features

Specify risk factors:

Alcohol Service:
├── ☑ Serves Alcohol
├── Alcohol Sales %: 30%
└── ☑ Has Liquor License

Kitchen Equipment:
├── ☑ Has Deep Fryer
├── ☑ Has Hood System
├── ☑ Ansul System Installed
└── Last Inspection: 2024-11-01

Safety Features:
├── ☑ Sprinkler System
├── ☑ Security Cameras
├── ☑ Slip-Resistant Floors
└── ☐ 24-Hour Security

Step 6: Select Coverage Limits

Screenshot Placeholder: Coverage limits section with dropdown selections for each coverage type

Choose coverage limits:

Coverage Limits:
├── General Liability:
│   ├── Per Occurrence: $2,000,000
│   └── Aggregate: $4,000,000
├── Property Coverage:
│   └── Limit: $1,600,000 (TIV)
├── Business Income:
│   └── Limit: $500,000 (12 months)
├── Liquor Liability:
│   └── Limit: $1,000,000
├── Equipment Breakdown:
│   └── Limit: $100,000
└── Food Contamination:
    └── Limit: $50,000

Step 7: Select Deductibles

Screenshot Placeholder: Deductible options with premium impact shown for each choice

Choose deductible amounts:

Deductibles:
├── Property Deductible: $2,500
│   └── Premium Impact: -$425
├── GL Deductible: $1,000
│   └── Premium Impact: -$150
└── Equipment Breakdown: $1,000
    └── Premium Impact: Standard

Step 8: Calculate Premium

Screenshot Placeholder: Large blue “Calculate Premium” button with restaurant icon

Click Calculate Premium to generate quote.

Step 9: Review Results

Screenshot Placeholder: Results panel showing total annual premium $18,750 with breakdown by coverage

View calculated premiums:

Premium Summary:
├── Property Premium:
│   ├── Building: $8,925
│   └── Contents: $1,890
├── General Liability: $4,500
├── Liquor Liability: $1,850
├── Business Income: $925
├── Equipment Breakdown: $450
├── Food Contamination: $210
└── TOTAL ANNUAL PREMIUM: $18,750

Payment Options:
├── Annual: $18,750 (Save $450)
├── Semi-Annual: $9,600 × 2 = $19,200
├── Quarterly: $4,850 × 4 = $19,400
└── Monthly: $1,650 × 12 = $19,800

Part 3: Understanding the Calculation

Calculation Breakdown

Screenshot Placeholder: Expandable calculation steps showing each formula execution with inputs and outputs

Review how premium was calculated:

Step 1: Base Property Rate Lookup

Table: RESTAURANT_BASE_PROP
Lookup: Territory=001, Cuisine=Italian
Result: 0.85 per $100

Step 2: Building Premium

Formula: (building_value / 100) * base_rate * class_factor
Values: (1,250,000 / 100) * 0.85 * 0.84
Result: $8,925

Step 3: Contents Premium

Formula: (contents_value / 100) * base_rate * 0.8
Values: (350,000 / 100) * 0.85 * 0.8 * 0.84
Result: $1,890

Step 4: GL Rate Lookup

Table: RESTAURANT_GL_RATES
Lookup: Seating=101-200, Alcohol=<30%
Result: 9.00 per $1,000 revenue

Step 5: GL Premium

Formula: (annual_revenue / 1000) * gl_rate * territory_factor
Values: (2,500,000 / 1000) * 9.00 * 0.80
Result: $4,500

Risk Factors Applied

Screenshot Placeholder: Visual showing how each risk factor modified the premium with green decreases and red increases

Modifiers applied:

Risk Factor Impact

Factor	Modifier	Impact
Deep Fryer	+15%	+$1,339
Hood System	-5%	-$446
Sprinkler System	-10%	-$893
Building Class B	-16%	-$1,700
Territory 001	+20%	+$1,800

Part 4: Quote Management

Saving the Quote

Screenshot Placeholder: Save dialog with quote name, expiration date, and notes fields

Save for future reference:

1. Click Save Quote

2. Enter details:

   Quote Details:
   ├── Quote Name: Mario's Italian Bistro - Feb 2025
   ├── Valid Until: 2025-03-01
   ├── Status: Pending
   └── Notes: Includes liquor liability, 30% alcohol sales
   

3. Click Save

Generating Quote Document

Screenshot Placeholder: Professional quote document with company logo, client info, coverage summary, and premium breakdown

Create professional quote:

1. Click Generate Quote PDF

2. Select template: Restaurant BOP Standard

3. Add optional items: * ☑ Include payment options * ☑ Show coverage descriptions * ☑ Add terms and conditions

4. Click Generate

Comparing Options

Screenshot Placeholder: Side-by-side comparison of three deductible options showing premium differences

Compare different scenarios:

Part 5: Advanced Features

Risk Improvement Scenarios

Screenshot Placeholder: What-if analysis showing premium impact of various safety improvements

Test improvement impacts:

Improvement Scenarios:
├── Remove Deep Fryer:
│   └── Premium Reduction: -$1,339 (-7.1%)
├── Reduce Alcohol Sales to 20%:
│   └── Premium Reduction: -$925 (-4.9%)
├── Install Central Alarm:
│   └── Premium Reduction: -$562 (-3.0%)
└── All Improvements Combined:
    └── Total Reduction: -$2,826 (-15.1%)
    └── New Premium: $15,924

Multi-Location Restaurant Chain

Screenshot Placeholder: Multi-location grid showing 5 restaurant locations with individual and total premiums

For restaurant chains:

1. Click Add Location

2. Enter each location’s details

3. System calculates: * Individual location premiums * Multi-location credits * Total package premium

Bundle with Other Coverages

Screenshot Placeholder: Bundle builder showing BOP plus Commercial Auto, Umbrella, and Cyber coverage options

Add additional coverages:

Bundle Options

Coverage	Details	Premium
Commercial Auto	3 vehicles, $1M liability	+$4,200
Umbrella	$5M excess liability	+$2,800
Cyber Liability	$1M limit, data breach	+$1,500
Bundle Discount | 10% on additional coverages		-$850

Part 6: Audit and Compliance

Audit Trail

Screenshot Placeholder: Audit log showing timestamp, user, action, and values for each step of the calculation

System maintains complete audit trail:

Audit Log:
├── 2025-02-01 09:15:23 - User: john.smith
│   └── Action: Initiated quote QUOTE-2025-MAR-001
├── 2025-02-01 09:15:24 - System:
│   └── Loaded RESTAURANT_BOP v2025.1
├── 2025-02-01 09:16:45 - User: john.smith
│   └── Entered property values: Building=$1,250,000
├── 2025-02-01 09:18:12 - System:
│   └── Executed 10 formulas successfully
└── 2025-02-01 09:18:13 - System:
    └── Generated premium: $18,750

Compliance Checks

Screenshot Placeholder: Compliance dashboard showing checkmarks for regulatory requirements

System verifies:

• State Filing: Rate filing approved

• Coverage Minimums: Meets state requirements

• Underwriting Rules: All guidelines satisfied

• Documentation: Complete file generated

Regulatory Reporting

Screenshot Placeholder: Report generation screen with options for state reports, statistical plans, and bureau submissions

Generate required reports:

1. Statistical Plan submission

2. Rate adequacy analysis

3. Loss ratio reports

4. Territory analysis

Summary and Best Practices

Key Takeaways

From this restaurant BOP example:

1. Comprehensive Configuration: Products require multiple components working together

2. Industry-Specific Factors: Restaurants have unique rating considerations

3. Risk-Based Pricing: Premiums reflect actual risk characteristics

4. Flexibility: System handles complex multi-factor calculations

5. Transparency: Complete audit trail for compliance

Best Practices

Common Pitfalls

Avoid these mistakes:

• Undervaluing Property: Use replacement cost, not market value

• Missing Liquor Exposure: Always ask about alcohol sales

• Ignoring Equipment: Kitchen equipment drives many claims

• Forgetting Business Income: Critical for restaurant survival

• Skipping Safety Credits: Document all safety features

Quick Reference Card

Screenshot Placeholder: One-page reference card with key factors, typical limits, common endorsements, and red flags

Essential restaurant rating factors:

RESTAURANT BOP CHECKLIST
========================
Required Information:
☐ Building and contents values
☐ Annual revenue
☐ Seating capacity
☐ Cuisine type
☐ Alcohol sales percentage
☐ Kitchen equipment details
☐ Safety features

Common Endorsements:
☐ Outdoor seating coverage
☐ Live entertainment liability
☐ Delivery coverage
☐ Seasonal adjustment
☐ Vacant building (if applicable)

Red Flags:
⚠ No hood cleaning records
⚠ Prior food poisoning claims
⚠ High employee turnover
⚠ Cash business >50%
⚠ No written safety procedures

Next Steps

After completing this scenario:

• Try Different Industries: Product Configuration

• Automate with API: API Integration

• Advanced Features: Performing Calculations

• System Administration: tiger Rating Engine User Guide

Tip

Practice with different restaurant types (fast food, fine dining, catering) to understand how factors affect premiums.

Note

This scenario used actual rating logic. Your production rates and factors may differ based on your company’s underwriting guidelines.