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Your Restaurant Needs Employment Practices Liability Insurance

Posted by David Ross on Sun, Jul 09, 2017

The EOC looks at nearly 90,000 Employment Practices Liability Insurance (EPLI) claims every year, and the average cost of each case is $450,000.

Restaurant owners should consider Employment Practices Liability Insurance (EPLI) for restaurants in Philadelphia, Reading, Lancaster, Allentown, Harrisburg, Pittsburgh, Erie, York, PA and beyond.If you own a restaurant, you’ve probably worked hard to build strong relationships with your staff and create an environment conducive to teamwork. If you’re lucky, you’ve found the magical formula that balances friendliness with professionalism, and you’re proudly watching as your well-oiled team creates and delivers delicious food to your customers. You and your staff may even feel like a big happy family.

But even happy families disagree and face irreconcilable differences. It happens all the time. Sometimes they can work through it, and sometimes they can’t. The same is true for employees.

Employment Issues Are 30% of Civil Litigations

The Equal Opportunity Commission (EOC) reports that employment issues make up 30% of all civil litigations in the U.S., which makes the likelihood of an employment claim against an employer higher than a property or general liability claim. And employment practices liability risks can begin the moment you interview someone.

Employment litigation claims can have a severe financial impact on a restaurant, even forcing them out of business if they do not have adequate insurance.  According to the Society for Human Resource Management, 67% of all employment cases that go to litigation result in a judgment for the plaintiff.

Larger companies tend to protect themselves against employment claims with employee policies and procedures and EPLI, but many small restaurant owners do not, and 41% of all EPLI claims are made against employers with only 15 to 100 employees.

Common EPLI Issues For Restaurants

Common issues for which a good EPLI policy can help protect your restaurant include:

  • Sexual harassment
  • Discrimination in hiring practices
  • Wrongful termination
  • Defamation of character
  • Emotional distress
  • Invasion of privacy
  • Failure to promote

How to Protect Your Restaurant From Employment Practices Liability Risk

  • Research employment laws that apply to your business.
  • Create an employee handbook with detailed policies and procedures that guide you through hiring, disciplining, and terminating employees. Include policies and procedures regarding attendance, discipline, and complaints; an employment-at-will statement and an equal employment opportunity statement.
  • Create job descriptions for each position that clearly defines the skills and performance expected from someone hired for that position.
  • Include an equal employment opportunity statement and an employee-at-will statement on your job
  • Conduct background checks on candidates.
  • Conduct and document periodic performance reviews of all employees.
  • Create a zero-tolerance policy regarding discrimination, substance abuse, and harassment.
  • Conduct an insurance review with your insurance agent to ensure that you have adequate EPLI

What You Should Know About Employment Practices Liability Insurance

The cost of EPLI coverage is determined by factors such as the number of employees you have, the percentage of employee turnover, and if you have established practices and procedures in place. EPLI may be offered as an endorsement to your Business Owner’s Policy, General Liability Policy, or as a stand-alone policy. It usually covers the cost of defending your restaurant against the charges and any damages you are ordered to pay.

Contact Us for a Free Insurance Review

Contact us for a free EPLI reviewDon't take chances with your restaurant business - you've worked too hard to get to where you are today. Be sure you are properly covered for every liability.

For a FREE REVIEW of your liability insurance, contact American Insuring Group online or call us (800) 947-1270 or (610) 775-3848.

Tags: Restaurant Insurance, Commercial Liability Insurance, Restaurant Insurance Pittsburgh PA, EPLI, Employment Practices Liability Insurance

Food Product Recalls and Restaurant Insurance Solutions

Posted by David Ross on Tue, Oct 13, 2015

Restaurant-Insurance-Food-RecallsHaving the right type of restaurant insurance coverage is key to protecting your business in the event of a food recall. That's because food recalls have become a major concern for restaurant owners and others in the food businesses in recent years.

The number of recalls has nearly doubled since 2002, costing many of these affected businesses more than $10 million for each incident, with some going as high as $100 million. Most of that money is spent on product disposal costs, business interruptions, and customer reimbursements. And those figures do not include the reputational damage that lowers profits for food producers.

A 2013 report by the U.S. Department of Agriculture indicated that nearly nine million people were sickened by contaminated food that year, costing the U.S. public health system a stunning $15 billion in hospitalization costs and lost wages.

Food recalls are triggered for several reasons, nearly half of which are for microbiological contamination. Another 25% come from incorrect or missing labelling. Defective packaging, physical and chemical contamination, and unapproved ingredients round out the list. 

Food Product Recalls and Restaurants

As a restaurant owner, it’s imperative that you keep on top of all food recall information – from both the FDA and the USDA. You can do that by regularly checking www.foodsafety.gov. You can also get recall information sent right to your email inbox or by uploading an app.

If you discover that there is a recall on a product that you serve, check to see if the items you have in stock are part of that recall. Then, find out the reason for the recall. As we mentioned, food can be recalled for everything from microbiological contamination to inaccurate ingredient labeling. If you do have recalled product, identify and separate those products. Finally, contact the manufacturer to determine whether to return or throw away the recalled product and to ask for a refund.

Restaurant insurance is a vital component of risk management

Contaminated foods can have a devastating effect on a food manufacturer or restaurant’s reputation. Also, consumers who have been poisoned by contaminated food can file claims for financial compensation. All of this points to restaurant insurance as a means of mitigating the financial impact of a recall. There are several possible solutions:

Product Liability Insurance provides compensation of justified third-party claims and defense costs for injury caused by a contaminated food product.

Product Recall Insurance reimburses expenses for the recall of any food product that was accidentally contaminated or labelled incorrectly and resulted in sickness, disease or death. It covers the company’s expenses related to the recall such as notification, testing, disposal, product replacement, and reimbursement of the purchase price.

Contaminated Product Insurance pays expenses that are associated with accidental contamination, malicious contamination, or product extortion demands. Specific losses that are covered include recall expenses, pre-incident consulting, post-incident crisis management, third-party expenses, loss of gross profit, and rehabilitation expenses.

Get the Right Restaurant Insurance for Your Peace of Mind 

Each of these types of insurance addresses a specific need. Click here to contact us or give us a call at (800) 947-1270 or (610) 775-3848 to find the right insurance solution for your company based on your risk exposure and the level of protection that you need.

Tags: Restaurant Insurance, Restaurant Insurance Philadelphia PA, Restaurant Insurance Allentown PA, Restaurant Insurance Pittsburgh PA, Restuarant Insurance Harrisburg PA, Restaurant Insurance Reading PA