There are a lot of factors that you consider when you are thinking of opening a new restaurant or bar. There's always the competition, staff needs, financial investment, etc. The one thing furthest from your mind? Your insurance exposures. The last thought you have is whether or not you'll be covered in the event a staff members steals from you. Right? Or maybe what happens if you have equipment breakdown? How do you maintain and still serve your patrons?
That's why you need us! Let us worry about what exposures you might have. We will go over where your risks are and how we can protect you. Here's just a small list of things to think about when it comes to Food & Beverage coverage.
Property Exposures
Fire Risk
Appliances are modern and up to date
UL300 Compliant. This requires:
Fire-extinguishing nozzles in the hood, ducts and above each cooking appliance
Automatic fuel shut-off capabilities for gas and electric power sources
Manual fuel shut off switch for all power sources
Requires a wet-chemical fire extinguisher (K-Type) in a commercial kitchen. These extinguishers use specific agents that separate the fuel from the oxygen and help absorb the fire triangle's heat elements (Fuel, heat, oxygen + chemical reaction)
Grease-soiled linen/rags should be stored in a metal container. They can combust if they are not properly stored in a metal container.
Be aware of NFPA 96 (National Fire Protection Association) minimum requirements for safety guidelines.
Water Damage
Frozen Pipes - If you happen to live in the frozen Tundra, this is a huge exposure that could lead to additional losses.
Check all visible plumbing for leaks and drips
Schedule annual plumbing inspections to catch problems before they create bigger losses
Water back via sewer/drain
Equipment Breakdown
POS systems, refrigeration, HVAC systems to all types of equipment are susceptible to power surges, short circuits and mechanical breakdown. Make sure wiring is up to code and correct amps are being used. Having some type of surge protection is highly recommended. A food spoilage for example could be detrimental to a business. Making sure you are using correct amps, etc., will go a long way to preventing a loss.
Liability Exposures
General Liability
Slips and falls are a huge exposure.
Stairs need to have proper hand rails, proper lighting and are uncluttered of debris that could cause a potential loss
All spills are wiped up immediately
Non-skid or non-slip flooring in vital areas
Well lit corridors and enter ways
Product Liability
Salmonella, E-coli and other food-borne illnesses are always a potential risk
Proper refrigeration
Food storage is critical
Training employees on safe food handling
Have quality suppliers to insure quality products
Liquor Liability
One of the highest potential for loss severity
Overserving and underage serving can result in a catastrophic loss. Especially if the patron that was served is involved in an auto accident, fight or assault
Anyone serving alcohol should be trained to recognize signs of intoxication
Have a plan in place for cutting off intoxicated people
Have cabs or Uber numbers on hand to offer them
Cyber Liability
Threat of cyber attacks and data breach is constantly increasing as we become more and more dependent on technology
Potential gold mine for cyber criminals because of the high volume of credit card transactions and customer information that is stored on line
Digital orders and payments increase the likely hood of an attack
Employment Practices
Employees are interacting with the public
Employees are at risk for harassment or discrimination claims from a patron or supplier
Employees are at risk of discrimination or harassment from management
Crime Liability
Staff handling cash and credit cards has potential to be a employee theft claim
Bookkeepers have access to account information and banking information
Exposure could lead to theft and fraud
As you can see, there are so many exposures you should be aware of when operating your business. And this list is a very small portion of what you should be aware of. Ask your agent! Make sure you are not vulnerable to any of these exposures and that you have protection in place.
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