Most restaurant owners get into the business because they are skilled in the kitchen or they are good at business. However, very few are insurance experts. Due to their ignorance, they tend to take the minimum coverage for their restaurant. They only get general liability coverage and inventory coverage which is inadequate. Basic restaurant insurance policies do not cover many restaurant exposures.
Below are 5 restaurant exposures that restaurant all owners should consider.
Most restaurants tend to be cash heavy businesses that keep hundreds or thousands of dollars in a safe overnight and are at risk of employee theft of that money. Other than the cash, some fine dining restaurants have memorabilia and artwork that is priceless. Even if you have put in place the best security measures, your restaurant can be a prime target for many criminals.
Equipment Breakdown Exposure
Restaurant equipment is very expensive and prone to breaking down. Equipment can break down as a result of improper maintenance, power surges or other internal issues. Whatever the reason for the breakdown, the cost of replacing the equipment can take a toll on the business. Most restaurant owners choose not to get equipment insurance because they think it is covered under property insurance but that is not always the case.
Employment Practices Liability
Employment Practices Liability is a very important coverage for restaurant owners to consider. Wrongful termination, sexual harassment, discrimination, and other complaints from employees who feel that they have been wronged are not covered by your worker’s compensation or general liability policies. EPLI will also defend you from suits from your customers who claim to have been discriminated against.
Food/product liability exposure
Despite most restaurant owners having strict food handling policies, employees might not be as vigilant with handling the food as expected of them. Hence, having insurance coverage for food contamination and spoilage is not just necessary but also wise. Also, if your area experiences a power outage and your food stock are deemed unsafe and unusable, you will be glad you had food spoilage insurance to cover the loss incurred.
Liquor Liability Restaurant Exposures
If you serve or sell alcohol at your establishment, you should consider getting liquor liability coverage. Tragedy strikes at the most unexpected time and you might find you have been sued for a small error. There are several things you can do to reduce your liquor liability exposure such as checking every client’s I.D. card before serving them alcohol, not serving an intoxicated patron, and having a contract with a taxi company to help customers who have been drinking get home safely. All in all, no matter how careful you are, it helps to have insurance.
Restaurants face unique risks and protecting against financial loss can be a challenge. It helps to partner up with us at, Brashears Insurance because we understand your unique risks. We will tailor make a restaurant insurance package that best suits your risks.