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« on: January 17, 2009, 10:27:30 AM »

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San Diego Union-Tribune
by Staff Writer Penni Crabtree, which talks about the impact the recession is having on the restaurant industry in San Diego:
...Mark Mays, president of Alcott Insurance, a North Park insurance brokerage that specializes in the restaurant industry.

Mays, who helps restaurant clients find liability, fire and workers'compensation insurance, said he has a few large restaurant clients who haven't paid their insurance or workers' compensation premiums and had their policies canceled.

The restaurants are violating state law by not carrying workers' comp, and are likely violating leases by not having insurance, but they are cutting corners to try to make ends meet, Mays said.

The number of warning letters from insurance companies that clients are behind on premiums is also rising, Mays said. He received 20 notices in October, 40 in November and another 40 in December.

“That's unusual,” Mays said. “And I've had about half a dozen clients cancel policies. A lot of time we do the dance, they cancel and we get them reinstated, but now people just don't pay.”


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