If you are a restaurant owner or considering becoming one, you need to understand the many risks associated with the restaurant industry. Restaurants face some unique risks and will need the right type of business insurance to protect your business. Some obvious insurance needs would include coverage for the building itself, liability, workman’s compensation, and business personal property, but what about some of the other coverages you may need? In order to adequately protect your restaurant business, you need to recognize some risks you may not have considered. Read on to learn about some common restaurant risks you could encounter, but may have not considered.
Unique Restaurant Risks You Could Face Without Proper Insurance Protection
Fire- A fire can be disastrous to your business. Imagine if a fire totally destroyed your entire business, which means it will need to be rebuilt. If your business is unable to operate and produce revenue because of this fire loss, you can consider business interruption insurance which will help to pay monthly operating expenses and lost income until you can reopen the restaurant.
Food Spoilage- If you experience a compete power outage which results in food contamination and spoilage, you will be faced with the cost to replace all that was spoiled.
Food Contamination- Imagine serving customers contaminated food and many people suffer illness as a result. This could not only damage your business reputation, but you may encounter a shutdown, incur the medial expenses of your ill customers, and lose money as a result. Plus, you will be faced with the cleaning and sanitiaon expenses of equipment associated with the contamination.
Slip and Fall- Imagine one of your loyal patrons slips and falls due to a slick floor and suffers a broken leg. There was a spill that had not been cleaned up yet and now you are faced with significant injuries to a customer, medical expenses, and not to mention a potential lawsuit. Having the right type of liability insurance and limits is essential.
Intoxication- If your restaurant serves alcohol, you need to recognize the risk of a customer being served alcohol and then leaving your establishment and having an accident. This could fall back on you, as the restaurant owner and you could be faced with a lawsuit.
Employee Accident- You send one of your employees to deliver some food and he/she causes an accident that injures several people. If you don’t have commercial/business insurance, you could be faced with some serious financial setbacks.
Data Breach- Imagine a hacker accessing all your important, valuable data along with customers’ credit card numbers. Without the right type of coverage protection, you could be faced with a business shutdown.
These are just some of the potential risks associated with restaurant operation and ownership; however, there are other available coverages you may want to consider. Contact us at Burkett & Associates to discuss all your Alabama restaurant insurance needs and we can customize your insurance protection. Don’t wait! Call us today at 256-704-7400.
