Insurance, especially in the hospitality industry, is a necessity today. No matter how small you think your restaurant is, it is exposed to a multitude of risks that could wipe you out of business in an instant. It is important to understand what risks your restaurant is exposed to in order to be able to protect yourself against losses.
Here are 5 important factors to put to mind when looking for an insurance cover for your restaurant;
i) Food poisoning
Your restaurant will always strive to ensure food safety through proper handling and by ensuring that you avoid spoilage and cross-contamination. An occasional slip by a not-so-vigilant employee could result in food poisoning for your patrons. Extended power outages could also result in food spoilage. This is why it is important to consider taking up an insurance cover for food contamination.
ii) Fire Safety
This is an absolute necessity if alcohol is on the menu in your restaurant. You never know when a drunk will start a fight and cause bodily harm or damage to the property. Such fights can result in lawsuits against your restaurant. It is, however, important to keep in mind that it is illegal to sell alcohol to minors and such claims won’t be taken up by your insurance. Be keen to also observe local laws regarding the sale of alcohol.
iii) Equipment Breakdown
Equipment will at times break down, whether from power surges, mechanical failure or irregular maintenance. Such breakdowns can be costly to the business without a proper insurance cover. Such a breakdown can result in loss of income and extra costs in replacing equipment. When looking for Restaurant Insurance, it is important to get a cover that protects you in the event of the breakdown of equipment.
iv) Theft and fraud by employees
Internal theft by employees is one of the biggest challenges players in the hospitality industry face today. You are bound to experience some form of theft or fraud by your employees. Sometimes the theft is minor that you can let it go with a warning, but at times it so big it results in the restaurant experiencing huge losses in income. Whether it is theft of cash, foodstuffs or the assets owned by the restaurant, you need to be adequately prepared for when it happens by getting the right cover.
v) Insurance cover for Liquor Liability
There are safety requirements, such as fire fighting equipment and training, that you will need to fulfil before getting a licence to operate your restaurant. This is aimed at reducing the risk of fires occurring and the severity of them should they occur. In as much as you may feel this is enough, you may still need to get a cover for the property against fire. There is also the risk of fire from an arson attack.
Getting the right insurance policy for your restaurant is not an easy task and you shouldn’t hurry it. Shop around and if need be, take different insurance policies for different risks. It might seem expensive, but losing all your investment to a simple risk that could have been covered will be more painful.