If you own a restaurant, your business may face lawsuits due to customer injuries, food-related illnesses, or negligence. One of the ways to protect your business from financial losses is by taking sufficient insurance coverage to protect you from the various risks involved with owning a restaurant. Here are some tips for managing risks with restaurant insurance:
Get Sufficient Coverage
Since you will serve customers, you need insurance with a general liability policy. This coverage may help you pay for third-party lawsuits if a customer gets injured or property gets destroyed. If you serve alcohol in your restaurant, liquor liability insurance protects you against alcohol-related incidents such as physical harm and property destruction. With sufficient restaurant insurance, your package includes workers’ compensation and reimburses your staff when injuries or illnesses occur. This type of coverage also comes with property insurance, which helps you repair or replace different items that were stolen or damaged.
Assess and Reduce Possible Risks
To avoid liability for issues affecting customers and staff, assess risks and reduce them before they cause serious problems. Some potential hazards include wet or greasy floors that cause people to slip and fall injuries. To prevent this danger, non-slip mats can be placed near sinks or fryers, and spills should be cleaned immediately. Make sure to store food at the right temperatures to avoid food contamination. Fire risks within your restaurant can be prevented by routinely cleaning grease traps and ventilation systems and keeping it organized.
Train Staff on Safety Practices
For restaurants that serve alcohol, owners can train staff to identify signs of an intoxicated customer and avoid offering them more drinks. Employees could be taught how to lift correctly or use equipment to transport heavy supplies to avoid injury at work. Educating employees to check that cameras and alarms function well to prevent theft and vandalism. In the kitchen, staff should be trained to recognize signs of electrical problems like overheating outlets, which helps prevent fires. Chefs can also be shown how to use fire extinguishers in case a fire breaks out while they’re cooking.
Update Your Policy When Changes Occur
When there’s a gap in your policy, you will be responsible for different expenses and legal costs. To prevent this financial risk, ask an experienced agent to update your coverage if you add new services or staff. You can also consult your provider to change your policy if you buy new equipment or introduce meals like seafood that pose risks. If you have experienced past claims, you can adjust your insurance so that it compensates customers or staff sufficiently. In many states, requirements change over time, so having a relevant policy helps you maintain your license.
Buy a Reliable Restaurant Insurance
As a restaurant owner, you can help keep your finances and business interests in order by training staff regularly and implementing safety practices. An agent can assess your business’s risks and recommend the right policy to get sufficient insurance. For more information about restaurant insurance, call a trusted insurer today.
