5 Most Frequently Seen Restaurant Business Insurance Claims and Solutions to Prevent Them

The restaurant business is exposed to several unique risks. Having comprehensive specialized restaurant insurance coverage protects you from extensive losses and keeps you financially secure in the event of damage or loss to your restaurant from a wide range of potential risk factors.

In this blog, we will discuss the top five business risks that lead to maximum insurance claims and also how to effectively secure your restaurant from these risks.

5 Most Frequent Insurance Claims in the Restaurant Business

Kitchen Fires

With over 7000 fires in eating and drinking establishments across the country, including restaurants, annually, kitchen fires are a major cause of concern. Cooking equipment tops the list of causes of kitchen fires, but there are other reasons, too, such as the build-up of grease, improper storage of materials, and faulty wiring, among others.

However, there are steps that you can take to prevent the occurrence of kitchen fires and minimize the damage in the event of a fire.

• Follow NFPA regulations for ventilation control when designing your kitchen.
• Regular maintenance and servicing of cooking equipment and electrical and ventilation systems.
• Install an automatic fire suppression system.
• Keep fire extinguishers within reach.
• Train kitchen and cleaning staff to follow fire-prevention guidelines.
• Install central station alarms.
• Have an evacuation plan ready.

Slip and Fall Injuries

Each day a restaurant sees dozens of customers, which makes it a hotspot for injuries caused by slips and falls. For restaurant workers too, who are always on the move taking orders, preparing dishes, serving customers, and cleaning, slip, and fall incidents are frequent.

To prevent such injuries from occurring in your restaurant, you can do the following:

• Keep the work areas clean.
• Place warning signs for wet and slippery floors.
• Use non-slip mats for slippery surfaces.
• Keep the walkways well-lit and clutter-free.

Workplace Injuries

With the physically demanding and high-pressure work conditions, workplace injuries are a common occurrence in the restaurant business. Nearly 93,800 cases of nonfatal injuries and illnesses to workers in full-service restaurants were reported in 2019. The most common injuries are:

• Cuts and lacerations
• Sprains, strains, and tears
• Soreness, pain
• Burns

To reduce cases of workplace injuries, you must provide your workers with the following:

• Training to perform tasks faster and with efficiency without getting hurt.
• Proper safety equipment such as cut-resistant gloves, oven mitts, and splatter shields.
• Minimize the need for intensive manual labor.
• Rotate the allotted tasks to reduce repetitive use injuries.
• Keep away hot scalding liquids and food.

Foodborne Illnesses

Food poisoning incidents can tarnish your restaurant’s reputation as well as attract lawsuits from unhappy customers. You must take all necessary steps to avoid it from happening.

• Ensure maximum hygiene and sanitary conditions
• Cook food thoroughly
• Don’t cross-contaminate
• Refrigerate promptly

Mechanical Equipment Failure

Equipment malfunctioning leads to not only a severe inconvenience but also extensive losses. To ensure that such situations do not arise, you must do the following:

• Regular cleaning
• Maintenance and servicing
• Repairs and replacements at the earliest
• Train staff about proper handling of equipment

Get Customized Restaurant Coverage with GrayStone Insurance Group

At GrayStone Insurance Group, we offer optimum insurance solutions with custom-made coverages to restaurants across Texas and New York. Contact us today to protect your restaurant business against various claims.