The restaurant industry’s projected sales for 2019 is $863 billion, according to the National Restaurant Association. As one of the most lucrative business types in the world, owning and operating a restaurant can bring about many rewards. It can also be quite risky if you do not establish the proper safeguards to protect your investment from common restaurant liabilities & risks.
Common Restaurant Liabilities
No matter how cautious you are, there is always a chance that a problem could arise unexpectedly. Knowing what restaurant liabilities you face and how to guard against them can help prevent your business from suffering the repercussions of these risks.
Injuries Between Patrons or Self-Injury
Injuries in your restaurant or on the premises can occur for a wide range of reasons. A customer may slip and fall on ice in your parking lot. A spilled drink that is not cleaned up fast enough could result in self-injury. Multiple patrons can also become injured in one fell swoop. If two or more patrons start an argument that becomes physical, minor to severe injuries could result and your venue may be liable for any damages.
Restaurant equipment and other commercial property is far from cheap. When an incident occurs that causes damage to your property, you do not want the bill coming out of your own pocket. When running any type of business, there is also a risk that a piece of a customer’s property could end up getting damaged. Having restaurant insurance can help ensure that you do not have to deal with the financial consequences involved in repairing or replacing damaged property. Property damage coverage typically covers a wide range of items, ranging from televisions to outdoor signage.
One of the most common risks associated with restaurants relates to food safety. According to the Centers for Disease Control, an estimated 48 million people become ill each year due to foodborne illnesses, and approximately 3,000 die. A good percentage of these cases have been linked to food contamination or spoilage in restaurants. Food spoilage is not always a careless act. In some instances, a power outage or mechanical failure can cause food to spoil unknowingly. However, having the right insurance policy allows restaurant owners to handle this type of situation in a safe manner that does not put customers or the establishment at risk.
When it comes to operating a restaurant, your reputation is everything. No one wants to eat at a restaurant that is known for their bad food, poor service, rude employees, or unhygienic dining room. When your business develops a bad reputation and more and more people hear about it, your restaurant will no doubt suffer. Business will start to slow down and without a steady income coming in, your restaurant will likely have to close down. Restaurant insurance can help protect businesses against reputational damage to prevent rumors and hear-say from ruining everything you have worked so hard for.
While serving alcohol in your restaurant can attract a whole new audience, it can also backfire. When patrons become too intoxicated in your restaurant, you risk problems such as fights, drunk driving, and property damage. While bartenders can be effective in limiting alcohol consumption, it is not always easy to determine if a patron is truly drunk until it is too late. Restaurants that serve alcohol to intoxicated patrons are at risk for certain legal and civil charges. However, having a restaurant insurance policy that covers these unique risks can reduce the likelihood of financial or legal struggles due to an intoxicated patron.
Importance of Restaurant Insurance
When you own a restaurant, disaster could strike at any time and without warning. While there is no way to always prevent problems from occurring, you can be protected when these common restaurant liabilities appear. Restaurants typically carry insurance to help mitigate the risks of unforeseen injuries or damages and to help keep costs associated with these risks low. Companies that forego business insurance often regret their decision down the line when a situation occurs that puts them in financial danger or forces them to close up shop. Restaurant insurance is an affordable way to maintain peace of mind.
Contact MFE Insurance About Acquiring Restaurant Insurance
As you build your business, you do not want anything to get in the way, especially a minor incident which could have major ramifications. If you are not sure what type of restaurant insurance policies are right for your establishment, a licensed insurance agent can guide you in the right direction. For more information about restaurant insurance or to acquire a policy, call the restaurant insurance brokers at MFE Insurance.