Every year, thousands of restaurants are hit with lawsuits ranging from $50,000 to several million dollars.
What would you do if you were hit with a liability suit for more than your current restaurant insurance covered?
Thankfully, here at InsuranceHub, we have experience helping to provide affordable:
- Catering Business Insurance
- Coffee Shop Insurance
- Mobile Food Truck Insurance
- Restaurant Insurance (with alcohol)
- Restaurant Insurance (without alcohol)
- Concession Stand Insurance
Here are a few of the reasons why restaurants, catering businesses, coffee houses, and mobile food trucks are sued each year:
- Slips and falls
- Food poisoning (ie: salmonella and E. coli)
- Sexual harassment
- Food allergies
- Nondisclosure of ingredients or calories
- Wage disputes
- Customers finding foreign objects in their food
Restaurant Insurance Information
Types of exposure that restaurants and food establishments need protection from:
Kitchen fires due to grease are one of your biggest property exposures, what with all of the cooking that you do. Some tips to help prevent and lower your damages from a fire are...
- Keep floors, food preparation areas, and cooking areas free of grease.
- Have fire extinguishers on hand.
- Make sure that all grills and deep fryers are working and operational. There should be automatic fire extinguishing protection, hoods, and filters.
- Have vent hoods and filters cleaned and replaced regularly
Equipment breakdown exposures:
Your restaurant requires ovens, stoves, refrigerators, and lots of other equipment. If any of your refrigeration or cooking equipment goes down, your customers might get a bit cranky because it'll take a while for them to get their food. Plus, if your refrigerators and freezers stop working, your food is at risk for spoiling and going bad.
Some of your crime exposures include employee theft, holdups, break-ins, and robberies. Some tips to lower your crime exposures are...
- Before hiring employees, have their backgrounds checked before allowing them to handle money or use the cash register.
- Have video cameras to deter employee theft and hold ups.
- Don't let cash accumulate in the cash drawers.
Inland marine exposures:
Inland marine insurance can protect your restaurant from many different exposures. There are lots of different types of inland marine insurance, but some questions to ask yourself are...
- Do you have paintings, artwork, and statues on loan from local artists?
- Keep copies of all bookkeeping records and computer files off-site.
- Do you offer a coat checking service to your guests? Talk to your agent about a bailees' rider.
Other food service and restaurant exposures:
Premises liability exposures:
Since you welcome guests onto your premises, it's important that you do everything you can to prevent injuries and harm from befalling them. Some tips to reduce your premises liability are...
- Beware of slips resulting from spilled food and drink. Make sure that spills are cleaned immediately.
- Keep bathroom floors clean. Put out "Danger: Wet Floor" signs as needed.
- List all food ingredients so customers with allergies can make informed decisions.
- Make sure all emergency lighting is operational.
- Clean all sidewalks and parking lots of ice, snow, and debris.
- Make sure exterior lighting is sufficient for people to make it safely to their cars.
- Train your employees about how to deal with inebriated and disgruntled guests.
Products liability exposure: The biggest problems are due to food poisoning and allergic reactions.
Your biggest product liability exposures are food poisoning and allergic reactions. To lower the chance of customers getting food poisoning or suffering an allergic reaction at your establishment, you can...
- Make sure all refrigeration equipment is operating at the correct temperature.
- Do not leave food sitting out on counter tops.
- Throw away food that has spoiled or is past the safe use date.
- Post the ingredients of every dish.
Liquor liability exposure:
Serving alcohol presents a number of risks. But there are some things you can do to lower the chances of an alcohol-related incident.
- Train your employees to check photo ID on everyone before serving them alcohol.
- Train your employees to never serve alcohol to an intoxicated patron.
- Offer to call a taxi for guests who are drinking.
Offering valet parking and having your employees run errands in company vehicles are some car-related exposures that your restaurant might have. Ask yourself the following questions...
- Do you offer valet parking services? Talk to your agent about getting a garagekeepers policy.
- Do you outsource valet parking? Make sure they're listed under "additional insureds."
- Do you have employees running errands in company vehicles? Check DMV records first.
Workers' compensation exposures:
Your restaurant has various workers' compensation exposures. To protect your employees and reduce the chances of injury, you can...
- Teach your staff how to carry heavy dishes ergonomically to help them avoid strained backs and wrists.
- Clean up spills immediately to prevent slips and falls.
- Give clear direction. This will lead the fewest injuries. Company incentives to encourage long-term employment are positive signs of management control.
Here is the minimum recommended restaurant insurance coverages:
- Business Owners Policy
- Business Personal Property
- Employee Dishonesty
- Equipment Breakdown
- Money and Securities,
- Business Income with Extra Expense
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Commercial Umbrella Liability
- Hired and Nonownership Auto Liability
- Workers Compensation