The Iowa Restaurant Association is asking state lawmakers to pass DRAM insurance reform that would make it possible for restaurant and tavern operators to secure better insurance policies to help compensate innocent victims if an intoxicated person causes harm and the restaurant or bar is held partially responsible.
In Iowa this coverage requirement is unique to those who "sell and serve" alcohol such as restaurants and bars. There is no similar requirement for those who "sell" unopened alcohol such as box stores, pharmacies, grocery, and convenience stores.
"We are the only segment of the industry which is held responsible for the behavior of others," said Jessica Dunker, president and chief executive officer of the Iowa Restaurant Association, the group spearheading the proposed changes. "We understand we have a unique relationship with patrons and as such we're willing to carry the extra coverage, but we also have to have access to affordable policies."
According to Ms. Dunker, Iowa ranks 46th in the nation in "insurability" for DRAM. "That's a pretty unattractive marketplace," Ms. Drucker said. She pointed to the rankings from ISO, an organization that provides actuarial and other information about property/casualty insurance risk.
"The way Iowa's laws are written today, it's nearly impossible for them to determine their risk," Ms. Dunker added. "If I was an insurance carrier, I'd think twice about writing DRAM policies in Iowa too."
The association hopes its proposed changes will bring Iowa's DRAM insurance grade in line with surrounding states. "Nearly anything would be better than what we have today," said Ms. Dunker.
Learn more: www.restaurantiowa.com.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].