The majority of restaurants run on thin profit margins, particularly those that have yet to become firmly established, and this causes some restaurant owners to skimp on restaurant insurance policies. However, not carrying enough coverage often results in restaurants being forced to close their doors as a result of not having the available resources necessary to carry them through high-risk situations in stride — and the liability issues restaurants face. Following are just five of the many liability issues restaurants face that can cost you your business if you fail to carry adequate insurance.
Although most people associate DUI-related liability with bars and nightclubs, they also affect establishments that simply serve beer and wine with meals. Make sure that all servers are trained in responsible alcohol serving, including how to recognize the symptoms of intoxication. A good restaurant insurance policy that includes liquor liability is a must for any business that sells or serves alcohol.
Food Safety Issues
The last thing any restaurant wants is for customers to come down with foodborne illnesses as a result of eating its food, but this is a significant risk that all establishments face. Naturally, you understand the importance of having a well-trained staff as a line of defense against this scenario, but a good insurance policy can save the day if something slips through the cracks.
Natural disasters seem to be on the rise these days, and they can have a serious impact on your restaurant. Not only will you lose business if you need to close while certain repairs are performed, but you’ll also be out-of-pocket for the cost of those repairs as well as the expenses involved in replacements for items that can’t be fixed.
Accidents Involving Employees
Restaurant work is physical work — employees are constantly in motion, they’re dealing with hot food items, hot stoves, and carrying heavy loads. In a busy restaurant, the pace can be incredibly fast during the dinner rush, and accidents tend to happen more in rushed environments. Be sure to provide your staff with ongoing safety training that emphasizes the importance of remaining aware and alert while on the job and making the best safety practices a priority.
And make sure your businesses is equipped with a comprehensive workers compensation insurance policy just in case.
A growing number of liability issues restaurants face surround offering delivery to meet consumer demand; while you may be missing out if you don’t get on this particular bandwagon, there are certain risks involved. Make sure that your business insurance policy includes on-road liability so that you’re covered in the event that any of your delivery drivers become involved in an accident.
Please don’t hesitate to reach out to us at your convenience for more information on how having the right insurance policy can help keep your restaurant on the track to success.