Owning a restaurant isn’t easy, and with all the potential liabilities associated with ownership, it’s important to make sure you have the proper insurance. Here are most common restaurant liabilities and how you can protect yourself and your business.
Food Liabilities
Food contamination and spoilage are something no restaurant owner wants to deal with, but unfortunately, it does happen. Sick customers could lead to serious legal action in retaliation, and spoilage can cause your restaurant to lose a significant amount of income. Restaurant Insurance from our insurance agency can help keep you protected from financial loss caused by food contamination or spoilage.
Employee Liabilities
Like any type of business, if you have employees, there’s a risk of injury on the job. Restaurants can be particularly dangerous due to sharp cooking utensils, spills, and fire from stove tops or ovens. If one or more employees are injured on the job, you become liable. That’s where a Workers Compensation Insurance Policy comes into play. It covers expenses accrued from lost wages and medical bills, and protects you from serious restaurant liabilities.
Additionally, employees also pose a risk to your restaurant if you don’t have an Employment Practices Liability Insurance Policy in place. This ensures that your restaurant has a proper work procedure in place, and in the unfortunate case of harassment, slander, workplace violence, or discrimination, you’re protected from the legal fees associated with these types of claims.
Liquor Liabilities
If your restaurant has a liquor permit and alcohol is served on the premises, then you may be in for a surprise. Even if you can legally serve alcohol, it comes with a serious risk. Customers can become intoxicated and cause physical damage to your property, themselves, your employees, and even other customers. That damage could lead to a financial burden that could shut down your restaurant for good, so don’t take a chance without the proper coverage. Similar to food liabilities, liquor liabilities can be covered under a Restaurant Insurance Policy.
Commercial Auto Liabilities
Do you offer your customers the convenience of delivery? If so, you’ll need to have the proper commercial auto insurance policy in place.
Whether your employees make deliveries using their own personal vehicle or a company owned one, an accident can occur to your employee or the vehicle on the job. Therefore, it’s important to have the proper coverage. Otherwise, you may face a huge financial loss.
Cyber Liabilities
Like most modern establishments, chances are your restaurant takes credit and debit cards, and while it may be convenient for your wait staff and customers, it opens up a huge door for restaurant liabilities because transitions are processed over a computer. Moreover, if a cyber criminal were to gain access to any of your customers’ personal information, you would be liable and potentially face legal action.
Small businesses aren’t the only victims of cyber crime either, in fact businesses from large medical corporations to even larger retailers have faced cyber crime, resulting in millions of lost revenue and stolen personal information. Therefore, it’s pretty important to make sure your restaurant is protected in the event something unfortunate like this happens to you.
As a small, independent business, we understand all of the hard work that goes into maintaining a business, and with common restaurant liabilities posing threats to owners across the country it’s important to protect yourself. Don’t let your restaurant business fold under, contact the insurance experts at Paradiso Insurance today by clicking the button below!
