As a restaurant owner, you have to deal with different rights and responsibilities on a regular basis. Managing a restaurant can be unpredictable on a daily basis. Navigating potential restaurant liability issues is especially important if you have a small business. One major liability dispute could ruin your entire business. While purchasing insurance is a legal requirement, there are a few situations where you may be left vulnerable if you don't have enough insurance coverage in place. Here's a look at some key liability situations that restaurant owners should be concerned about.
Perhaps your restaurant is located in a tropical climate with lots of storms and other types of severe weather. Natural disasters such as hurricanes and tornadoes should be on your radar. A natural disaster has the ability to destroy your restaurant completely. You may be forced to shut down permanently if you don't have the financial resources in place. Trying to cover repair and replacement costs, make payroll, and other obligations can be overwhelming. Luckily, business interruption insurance protects you in this situation.
Business interruption insurance covers your business in the aftermath of a natural disaster. You'll recoup lost income, allowing you to make payroll, pay property costs, and other important functions. Business interruption insurance also covers you if you need to switch locations temporarily until your property is restored.
One of the most popular consumer trends in the last decade is the rise of delivery services. Restaurants are seemingly forced to create their own delivery service or risk falling behind the competition. As a result, delivery errors have become one of the most common restaurant liability issues over the last few years. There are multiple risks involved with performing delivery services.
As a restaurant owner, it's recommended that you look over your liability insurance to see if you are covered if one of your delivery drivers is involved in an auto accident on the job. Without the proper protection in place, you could be on the hook for potential legal fees, medical bills, and repair costs associated with the accident. Purchasing commercial auto insurance may be your best option.
Offering alcohol at your restaurant can help you attract more clients and increase your revenue. However, there are significant risks involved with serving alcohol to patrons. Consider a situation where you served a patron one drink too many, and now they are intoxicated. Your restaurant will be held responsible if they get into a fight and injure another patron or cause property damage.
This is a potential financial disaster unless you have enough insurance in place to protect your business. It's recommended that you train all of your employees to notice potential signs of an intoxicated patron.
One of the most common restaurant liability issues is potential food safety problems. Perhaps one of your dishes makes multiple customers sick. In addition to dealing with a potential lawsuit, you'll also have to deal with a damaged reputation. Preparing food that makes people sick is an easy way to lose customers. It's recommended that you hire quality staff to help prepare food.
A liability dispute is bound to occur at some point due to the high traffic at most restaurants. It's recommended that your employees undergo extensive training to prevent common errors. The team here at GrayStone Insurance Group will help you find the necessary coverage to protect your business. Contact us today to protect your restaurant business.
