Like any other businesses, restaurants require business insurance coverage tailored to cater to the perils affecting them. Restaurants face dangers such as kitchen fires, food poisoning claims, and bodily injuries. Those that serve alcoholic drinks face even more risks. The right restaurant insurance policy is necessary to protect against financial losses that may originate from such perils. While some precautions may enhance safety in your establishment, you can never be immune to disasters. For this reason, shield your business finances by having the proper coverage. Here are four reasons to carry a restaurant insurance policy.
Kitchen Accidents Happen All the Time
About 60 percent of house fires emanate from the kitchen. Worse still, nearly 500 people lose their lives yearly to kitchen fires. Also, more than 350,000 people are injured by chef’s knives every year. These are shocking statistics surrounding home kitchen accidents. The case is worse for commercial kitchens considering more activities happen there. Accidents can result in both property damage and bodily injuries. Therefore, as you incorporate measures to prevent kitchen accidents, prepare for the unforeseen by carrying the right restaurant insurance policy.
Cyberattacks Are on the Rise
Any business that stores data is at risk of cyberattacks. It is riskier for enterprises that handle third-party sensitive data such as financial and residential information. As a restaurant owner, there’s no doubt you will have details such as clients’ names, mobile phone numbers, and financial data based on the transactions that took place. Cybercriminals are constantly looking for such information since it’s in demand on the black market. It means you also need to protect your business against it, which will save you a lot of trouble.
Food Poisoning Cases Are Common
Don’t be surprised if a client returns two days later with food poisoning claims. Provided you sell food, expect complaints involving food poisoning. Since such complaints are inevitable, you should also prepare accordingly. Remember, clients will sue you, not because you’re guilty of their claims, but because they think you are. So, you should always have a defense plan in place. You will have spent a lot on defense when the court finds you innocent. Therefore, ensure you carry enough restaurant liability insurance to prepare for such adequately.
Employees Are at Risk
As mentioned earlier, kitchen accidents are common in the U.S. It’s not surprising that in 2019 alone, about 93,800 workers in full-service restaurants sustained bodily injuries. In case such eventualities happen in your establishment, you will likely receive lawsuits and compensation claims from affected employees. Without the right insurance coverage, you will likely jeopardize your business finances, which is why you should cover your establishment, including your staff, accordingly. Remember, employees, require workers’ compensation insurance, a policy that pays for lost wages and treatment expenses in case of a workplace injury. Also, remember to create awareness of ways to enhance safety at your establishment. It will help lower your restaurant insurance costs.