Restaurant Insurance Coverages

December 29, 2019

I find that so many of our Restauranteurs are frustrated with the insurance confusion inherant to your industry. Consistently with both Franchised Operations and Independents, your insurance agent needs to be an expert in Restaurant Insurance. The insurance needs for food service are different from any other industries.

I find that many Operators have a good understanding of covering the basics on the property and liability insurance. Unfortunately, however, there are situations where coverage can be a concern. There are certain coverages needed to be verified in your current Food Service Insurance Program. Here are some examples of claims we've seen and how we can protect you so you can focus on your operations:

  • A customer getting sick over a meal and claiming it was your restaurant that made them ill. A properly structured General Liability policy can address this.
  • Your server incorrectly said there were no nuts in a dish and the customer had an allergic reaction.
  • If someone has too much to drink and is injured or causes damage or industry, it might be alleged to be your fault. Liquor Liability can be provided to cover this.
  • The dishwasher is sent to Publix when your kitchen ran out of corn starch. If that employee is in an accident, there might be a claim filed against YOU. This can be covered by endorsement on your Liability policy.
  • An electrical surge destroys your kitchen's ventilation system and now needs to be replaced. Mechanical Breakdown coverage can be part of your Program to cover this.
  • After a Florida windstorm forces you to close for a few days, the loss of revenue can be huge. This can best be addressed with Business Income Insurance.
  • One of the guys in the back of the house makes sexual advances towards the hostess. She gets upset and wants to sue YOU. Employment Practices Liability is designed for protection against this.
  • A fire from the fryer causes damage to some adjacent refrigeration. The seafood in the cooler spoils as a result. Spoilage coverage is needed.

These are just a few of the scenarios that I think Florida's Food & Beverage owners need to examine on their insurance policy. If we can help, please let me know.