Bar/Tavern Example
Example Company: Charleston Bar & Tavern
- Gross Sales: $1,200,000
- 55% Alcohol Sales
- Closes at 1:00AM
- Has Live Music, Karaoke Night & Trivia
- 0 Insurance claims in last 5 years
- 10 Years of Operations
- Active and Engaged Ownership
First Year Premium
(Paid Monthly)
$
0
Profit Participation Example:
Ragnar Program Annual Premiums Collected:
$10,000,000
Total Claims Paid:
$3,000,000
Administration Expenses:
$1,470,000
***IBR Estimate:
$2,000,000
Underwriting Profit:
$3,530,000
Excess Reserve:
$1,500,000
Return to Policy Holders:
$1,530,000 (Premium Credit)
$500,000 (Dividend)
Charleston Bar & Tavern Participation:
2.77% ($27,103/$10,000,000)
Premium Credit:
$4,238
Dividend (Assumes 350 Members)
$1,428
Net Insurance Cost: $22,037
*Illustration Only. Profits are not guaranteed and are dependent on underwriting profitability of the program.
Actual results will vary. Dividend and Premium Credit are determined by board of directors.
***IBR-Incurred But Not Realized claims.