Owning and operating a restaurant can be exhilarating due to the fast past environment, delicious menu options, and the satisfaction of your customers when dining; however, there are some common challenges/risks that are prevalent in the restaurant industry. Unforeseen accidents can and do happen and without adequate training and preparation, accidents can quickly turn into insurance nightmares for restaurants like yours. Read on to learn the common insurance risks for restaurants and how to avoid them.
Below Are Typical Restaurant Insurance Risks and Tips to Prevent Them, but Not Limited to:
Running a restaurant means being prepared to face unique challenges and risks inherent in the industry.
Slip and Fall- This is one of the most common scenarios that could end up costly to restaurants. A customer slips on the slippery floor and incurs injuries and medical expenses. Now you are faced with a liability claim, not to mention the possibility of a costly lawsuit. Uneven surfaces, spills, and slick floors can lead to slip and fall incidents. Below are some ways to mitigate the likelihood of this happening:
- Communicate with your local Alabama independent insurance agent- Make sure you have adequate general liability insurance limits/coverage to protect your restaurant. Staying in touch with your insurance agent can ensure the right amount of protection you need.
- Conduct regular inspections- Performing regular checks on your flooring, walkways, rugs, and carpet can allow you to assess and address any issues that may result in hazardous conditions.
- Provide routine employee training- Each employee should be trained on accident prevention, safe cleaning procedures, and the effectiveness of cleaning spills immediately and using the right signage to alert anyone around the spill.
Fire- Property damage resulting from a kitchen fire can lead to catastrophic losses in your restaurant. Whether it’s due to electrical issues, greasy stove tops and ovens, or unattended stove tops, fire can quickly spread. You can mitigate fire risks by:
- Install proper fire equipment- Routinely inspect all fire extinguishers or fire suppression equipment so that when needed it’s ready to go.
- Enforce regular cleaning- By doing this you are ensuring the kitchen doesn’t have grease buildup, dirty filters, and equipment. The removal of grease is key to reducing the likelihood of a fire.
- Ensure adequate property coverage- If a fire ensues at your property, you need to make sure you have adequate insurance coverage to protect your business.
- Provide employee training- Train your staff on proper cleaning techniques, proper equipment usage, and routinely perform fire safety drills so that if a fire does happen, your employees will know how to act appropriately and quickly.
Foodborne Illness- This can lead to serious issues, not only financial, but to the detriment of your business reputation. To prevent food poisoning outbreaks, follow these measures:
- Effectively train employees- Employees must be trained on proper food handling, adequate food temperatures, proper food storage, and strict hygiene practices. These methods should not only be trained, but strictly enforced.
- Utilize reputable suppliers- If you use reputable suppliers, you can ensure your food supplies and ingredients are fresh and have been inspected with strict food safety criteria.
- Consider product liability insurance- This type of insurance protection can safeguard your investment in case of a foodborne illness outbreak.
Workplace Injuries- Your employees can suffer injuries at your restaurant due to varying hazards. Your staff could suffer a back injury due to lifting heavy supplies and food or sustain injuries from sharp objects. To mitigate the risks of workplace injuries, follow these guidelines:
- Conduct regular training- Your employees should be trained on potential risks of injury at the workplace and the proper steps to follow should an injury occur.
- Utilize safety equipment- Staff should follow safety protocol enforced at the workplace such as wearing proper safety gear, gloves, and anything else that could prevent an injury.
- Ensure adequate Workers’ compensation insurance- You must maintain this type of insurance to protect your workers and business.
Mechanical Equipment Failure- If you experience an equipment breakdown, it could lead to some serious financial challenges. Disruption of business operations can be costly when machinery or equipment breaks down. To prevent this, follow these tips:
- Consider business interruption coverage- This will cover lost income during the time you had to suspend your business operations until the equipment is back in working order.
- Schedule regular maintenance- Doing this can ensure your equipment is working properly and if something is not working correctly, it can be addressed before it becomes a bigger issue.
- Have a backup plan- Having backup equipment in place is key to minimizing business interruptions.
Burkett & Associates understands the unique risks the restaurant industry is faced with, and we are here to assist you with the unique Alabama insurance needs for your investment. Contact us today at 256-704-7400 to assess your risks and acquire the right type of insurance protection you need at a budget you can afford. Don’t wait! Call today.
