Rainbow Launches Standalone Liability Coverage to Tackle Hospitality Insurance Gaps

Quick Summary

Rainbow has launched a standalone liability coverage solution for the hospitality sector, specifically targeting food and beverage establishments. This product addresses placement challenges by bundling general liability, liquor liability, EPL, and cyber coverage into a single policy, particularly in states where property insurance capacity is currently constrained.

How Does Standalone Liability Coverage Solve Hospitality Placement Gaps?

Rainbow addresses the complex liability exposures inherent in the food and beverage industry by decoupling liability from property coverage. This is particularly vital in "dislocated" markets like Florida and South Carolina, where constrained property capacity often prevents agents from securing comprehensive Business Owners Policies (BOP). By offering a standalone liability solution, Rainbow allows agents to secure essential protections even when the physical property environment is problematic.

• Bundled Protection: Combines General Liability, Liquor Liability, EPL, and Cyber.
• Broad Geographic Reach: Available in over 20 states, including California and Texas.
• High-Capacity Paper: Written on Sierra Specialty Insurance Company (AM Best A- rated).

What Specific Benefits Does This Offer Multi-Location Franchisees?

For fast food franchisees and quick-service restaurant operators, managing multiple locations requires a bespoke coverage approach. Rainbow’s new product is designed to handle multi-location account opportunities with ease, providing a streamlined digital quote-to-bind experience. This flexibility is essential in a softening rate environment where specialized underwriting can differentiate a risk and secure better terms for large-scale hospitality operations.

• Millions in Premium: Already generated significant volume since the recent soft launch.
• Market Coverage: Rainbow now serves 42 states, covering 80% of U.S. food & beverage sites.
• Specialized Underwriting: Focuses on the unique risks of late-night hours and older buildings.

"Hospitality accounts often carry liability exposures that go well beyond general liability, and this creates placement challenges for agents," said Bill Deemer, Head of Insurance at Rainbow. "By bundling GL with liquor liability, EPL, and cyber into a single liability-only product, we're giving our agents a flexible solution — one they've been asking for and can’t easily find elsewhere — especially in areas where the property environment is problematic. Available for single or multi-location accounts, it gives agents of all sizes more reasons to bring that business to the underwriters at Rainbow first."

FF NEWS TAKE:

Rainbow’s move into standalone liability coverage definitely moves the needle for the insurtech space. By focusing on the hospitality sector's pain points—specifically the decoupling of liability from volatile property markets—they are providing a surgical solution to a systemic problem. This demonstrates a sophisticated understanding of E&S market dynamics, proving that Rainbow is more than just a digital interface; they are a specialized underwriting powerhouse.