Inviting the public into your business comes with a wide range of risks, but those risks multiply further when you're making money by feeding those guests. Running a restaurant requires a complete suite of different types of liability business insurance.
Before you open your doors up to customers and potential lawsuits, put these four tips to good use to make the most of the insurance coverage for your business:
Order a Food Contamination Rider
Don't stop your liability coverage at slips and falls - ask your insurer for an additional rider that specifically protects you from food poisoning claims. Even if you practice the best safety procedures and have never had a complaint, it only takes one accident or malicious diner to ruin your reputation. This coverage should include the costs of investigation to prove or disprove the claim and financial reimbursement to the affected customer.
Ask for Medical Documentation
No amount of insurance can protect you if an employee takes admits guilt and takes responsibility for a food poisoning accusation when a customer drops in or calls on the phone. Before making any claims or giving money to an angry guest, ask them to provide documentation from a doctor that has examined them. If there's no proof they were even sick with a case of food poisoning, you won't need to take the case to your insurance company.
Outsource the Valet
Offering valet services adds a level of luxury to your restaurant, yet it also comes with a whole new set of insurance expenses and complications. Hiring a separate company to provide valet professionals is a smart way to save money because the contractor will carry their own insurance. You won't end up hiring more employees to cover the parking lot either, reducing your human resources management burden.
Splurge on Liquor Liability Coverage
You need to do a little more preparation before putting that hard-earned liquor license to good use. Even if you're only allowed to serve beer and wine, take out an insurance policy for liquor liability specifically. This coverage should include payments for damage caused by intoxicated patrons and accidents they get into after leaving your establishment.
Getting enough insurance coverage is tricky when you're running a restaurant. In addition to all the different types of liability protection, you also need worker's compensation, general risk insurance, and business interruption plans. Work with an insurance agent well-versed in the world of business coverage to get everything you need from a single source.Share