Thousands of restaurants are hit with lawsuits ranging from $50,000 to several million dollars annually.
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
- Non-disclosure 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. 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: If any of your refrigeration or cooking equipment goes down, your customers will have to wait too long to eat. They may leave bad reviews on sites like Yelp and Urbanspoon.
- 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:
- Do you have paintings, artwork, and statues that showcase local artists on loan?
- 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:
- Beware of slips resulting from spilled food and drink. Have spills 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.
- Have you trained your employees about how to deal with inebriated and disgruntled guests yet?
Products liability exposure: The biggest problems are due to food poisoning and allergic reactions.
- Please post ingredients of every dish.
- 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.
Liquor liability exposure:
- 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.
- Do you offer valet parking services? Talk to your agent about getting a garage keepers policy.
- Do you outsource valet parking? Make sure they're listed under "additional insureds."
- Do you have employees running errands in company vehicles? Please check DMV records first.
Workers' compensation exposures:
- Strained backs and wrists from carrying heavy dishes from the kitchen to the customers' tables.
- Teach your staff how to do this ergonomically.
- Clean up spills immediately to prevent slips and falls.
- Clear direction 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