Risk Management Solutions for Restaurant Owners

Restaurants are more than just food. They bring opportunities to connect and bond over new and shared experiences. Being a restaurant owner comes with many great joys and rewards, but also offers its own set of surprises and risks along the way. With our restaurant insurance policies, comprehensive and industry-specific coverage can be tailored to your needs so you can keep serving it up your way, every day.

Protection for restaurants is centered around keeping your business going no matter what. Some of the essential coverages specific to restaurants are:

  • Business Income
  • Contamination Coverage
  • Employment Practices Liability
  • Employee Theft
  • General Liability
  • Liquor Liability
  • Spoilage

Liability Coverage for Restaurants

Operating a restaurant comes with its fair share of risks. With staff, contamination risks, and customer concerns, there are many hazards that restaurant owners need to prepare for. General Liability is a must-have for any restaurant since most of their service is provided in-house and customers are coming and going from the establishment. If one of your patrons is hurt while they are dining with you, General Liability will cover their medical expenses and also associated legal expenses if the claim turns into a lawsuit against the restaurant.

Unfortunately, General Liability coverage does not extend to foodborne illnesses from undercooked or contaminated food products, so it is important to opt for additional protection through Contamination coverage. This coverage protects your restaurant by covering the expenses associated with a contamination incident that causes harm to a customer. Contamination coverage will pay for the customer's medical bills, your legal costs in a lawsuit, time and pay to remove contaminated items, and the expense to rebuild the brand after bad publicity. Even if you adhere to appropriate practices with cooking, food-handling, and storage, it is best practice to carry Contamination coverage so you aren't left with unexpected expenses when an incident occurs.

It takes a team to successfully run a restaurant, including cooks, waiters, hosts, and cleaning staff. You want to make sure they have a safe and supportive work environment that gives them pride and confidence as a part of your business. Even with your best efforts, problems in the workplace can still happen and cause issues for your employees. Employment Practices Liability ensures that in the event of an employment-related claim, your restaurant is protected. This can include situations such as sexual harrassment, wrongful termination, wage and hour disputes, or discrimination, which often result in a lawsuit against you or your business. By carrying Employment Practices Liability, you can have the necessary coverage to pay for legal expenses and a settlement if the negligence is deemed true in court.

Many restaurants see the opportunity for increased profit by serving alcohol. While it may be a great additional revenue stream, serving liquor comes with a unique set of risks and challenges. A patron could be accidentally overserved or choose to make poor decisions while under the influence of alcohol. While staff training and strict rule enforcement can help mitigate these occurrences, you cannot completely eliminate this risk from your business. Liquor Liability protects your restaurant in the event a patron is injured, causes damage to others, or hurts someone else after being served alcohol in your restaurant. No matter the situation, Liquor Liability is essential for any restaurant serving alcohol so you can be properly covered in case of a serious problem.

Product Protection for Restaurants

In order to make all of your menu items, you likely have a decent stock of ingredients on hand. If your cooler, fridge, or freezer fails, all of that inventory will spoil if repairs take too long or a replacement is needed. Spoilage coverage can help prevent high costs out of pocket in the event your equipment stops working, whether due to wear and tear, loss of power, or a covered loss. This coverage won't pay to replace the broken equipment or to repair any malfunctioning equipment, but it will pay for the loss of inventory so you can easily replace them and get your kitchen back in order.

Every restaurant relies on tools and equipment to make a variety of dishes and treats. You want to make sure your property is covered in the event an employee decides to steal anything from the kitchen or restaurant. Employee Theft coverage reimburses you as the restaurant owner for any items that are stolen by your staff. Often this is a crime of opportunity rather than premeditated thought, so even the most efficient and seemingly trustworthy teams are still susceptible to this occurrence. It is highly recommended that every restaurant owner carry Employee Theft coverage just in case an opportunity presents itself that an employee simply cannot resist.

Want to learn more? Our team of commercial insurance agents is ready to answer your questions and find the best restaurant insurance package for your business.