Running a restaurant can be a lucrative business option when done right. However, there is a lot of risk associated with a restaurant. Protecting your business, yourself, your employees, and your patrons is critical. Below, you will find the top liabilities for running a restaurant (and how insurance helps).
Top Liabilities for Running a Restaurant (And How Insurance Helps)
Avoid the common issues that impact restaurants by protecting yourself. Consider the following liabilities and how insurance can help protect you and your business.
Alcohol-Related Incidents:
Restaurants that serve alcohol are at risk for alcohol-related incidents. This is because customers who consume alcohol can become intoxicated. This can lead to accidents and fights, both of which can have serious legal consequences. Injuries on the premises and property damage can lead to lawsuits against the restaurant. Liquor liability insurance is necessary as it can help reduce your risk of legal and financial harm. Not only can restaurant and bar insurance protect your business and your finances it can also ensure your credibility and reputation within the community.
Property Damage:
Accidents can happen anywhere, including at your restaurant. Property damage is a significant liability for restaurants. Things like fires, floods, and equipment issues can be expensive. Insurance is necessary to ensure that damage to the building, furnishings, and equipment is covered. Property insurance can cover some of the costs in the event of an incident. Even the most careful and judicious restaurant owners invest in insurance to have peace of mind and reduce their potential risk of loss. Contact Safecal insurance services to determine what protection you need.
Slip and Fall Accidents:
Restaurants are often busy and the likelihood that something spills is high. Wet floors, debris, and uneven surfaces create hazards that can result in accidents. This can impact your patrons or employees, so it’s important to protect your business. General liability coverage is a common solution to this problem. Depending on your plan and provider, this type of insurance often covers some or all of the medical expenses, legal fees, and settlements. As with property damage, it’s important to have coverage to protect your credibility and reputation in the community.
Cyber Liability Issues:
The increasing reliance on tech and other types of software in restaurants has increased the risk of cyber crimes. Cyber crimes are extremely dangerous as they can put your restaurant and customers’ information at risk. Failing to address internal and external digital security can place your business at risk. It’s helpful to consider cyber liability insurance. This can help provide peace of mind and protect your business. Depending on your specific plan and provider, it can cover costs associated with data breaches, including legal fees and regulatory fines. Assess your restaurant’s risk when it comes to cyber issues to determine how much coverage you should have.
Employment Practices:
No matter how good of an owner you are, employment practice issues can arise. This includes things like discrimination, wrongful termination, wage disputes, and even sexual harassment. This type of legal battle can be costly and take up a lot of your time. Employment practices liability coverage can provide protection for employment practice issues. This may include covering some or all of your legal costs, settlements, or judgments related to employment disputes. This is beneficial in protecting both your finances and your reputation.
Automobile Incidents:
Restaurants often have automobiles as a part of the business. Whether it’s for delivery or running business-related errands, accidents can occur. Accidents that occur during the course of business or when using company vehicles can place the restaurant at risk. This is because accidents can lead to property damage, injuries, and other legal claims. Protecting your business is key, so it is imperative to have commercial auto insurance. There should also be additional training and background checks done on those who drive a company vehicle. Protecting your business is key when it comes to auto accidents due to the severity of damage that could occur.