Restaurants
Restaurants offer a variety of services, from serving a full menu of food items to providing entertainment and special events. Ensuring the safety and smooth operation of your restaurant is crucial, and having the right insurance coverage can protect your business from potential risks.
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Coverage Options
Property Exposures
The primary concerns in a restaurant are from cooking, electrical wiring, and refrigeration units. The production of grease-laden vapours increases the risk of fire. All grills and deep fat fryers should have automatic fire extinguishing protection, hoods, and filters. The kitchen must be kept clean and grease-free to prevent the spread of fire. Refrigeration units using ammonia must have proper containment measures to prevent explosions. Spoilage exposure is high, with even minor incidents potentially resulting in the loss of fresh and frozen goods.
Equipment Breakdown Exposures
The operations are highly dependent on refrigeration and cooking equipment. Any breakdown can lead to significant operational and financial losses.
Crime Exposures
Employee dishonesty and theft of money and securities are significant risks. Conduct criminal background checks on employees handling money. Implement strict cash management procedures, including regular deposits and limiting cash accumulation.
Inland Marine Exposures
These include accounts receivables, computers for tracking inventories and payrolls, and valuable papers and records. Duplicates of all records should be stored off-site. Restaurants may also have a bailees exposure from offering coat check services or storing entertainers’ property.
Occupiers’ Liability Exposures
Public access to the premises increases the risk of slips and falls, especially with servers carrying trays of food and beverages. Ensure quick cleanup of spills, prominently mark uneven surfaces, and provide lighted emergency exits. Monitor food quality to prevent allergic reactions and food poisoning.
Products Liability Exposure
Maintain strict quality control of food received, post ingredient lists, and ensure proper storage temperatures to minimize the risk of food poisoning and allergic reactions.
Liquor Liability Exposure
Compliance with provincial and federal regulations is crucial. Implement procedures to check IDs and monitor patrons to prevent underage drinking and over-serving. Train employees to recognize intoxication and handle such situations appropriately.
Automobile Exposure
If the restaurant offers valet parking, purchase garage keepers coverage for damage to customers’ vehicles. Ensure that employees running errands have valid licenses and clean driving records.
Workers Compensation Exposures
Employees face risks of slips, falls, cuts, burns, and lifting injuries. Proper training and safety procedures can reduce these risks. Encourage long-term employment with company incentives to improve overall safety and management control.
KRGinsure: Your Coverage Expert
At KRGinsure, we understand the unique challenges faced by restaurant owners. Our dedicated brokers are here to help you design a tailored insurance program that meets the specific needs of your business. We provide expert advice on risk management and ensure that you have the right coverage in place to protect your operations. Contact KRGinsure today to learn more about our comprehensive restaurant insurance solutions and how we can help safeguard your business.