3 Facts About Restaurant Insurance

• • • In Pennsylvania, "any establishment or licensed individual who gives alcohol to a visibly intoxicated person can be legally held responsible for injuries and damages that person might cause." Typically, CGL doesn't cover this type of liability; however, Liquor Liability insurance does cover claims involving alcohol.CGL is also not designed to cover employee injuries.
      
      
    • In Pennsylvania, Workers' Compensation (WC) insurance is mandatory for most employers. WC covers medical expenses and lost wages for employees injured on the job and limits employees' ability to sue your business for negligence related to the injury. Employers who do not have workers' compensation coverage may be subject to lawsuits by employees and criminal prosecution by the commonwealth.
      
      
    • Recently, restaurants have been hit hard by data breaches. According to QSR, "Cyber criminals have found a rather easy and profitable target within the restaurant food chain vertical. With point-of-sale systems distributed across hundreds, if not thousands, of locations—these attackers find it all too easy to penetrate and maintain a presence, harvesting customer PII and credit card data." Furthermore, according to Bluefin, the average cost of a data breach in 2019 was $1.99 million. And typically, CGL has limited or no coverage for data breaches, which is why Cyber Insurance is crucial.

It's also important to remember that the limit (the most an insurance company will pay if a claim is filed) can vary significantly. An experienced insurance agent can help you determine the appropriate limit for your needs. 

Insurance Covers the Food You Prepare and Serve.

Restaurants face a unique risk – food contamination and food poisoning. While smart restaurant owners do everything possible to minimize the risk of food contamination, it is still a risk. According to the Centers for Disease Control and Prevention (CDC), approximately one in six Americans (48 million people) gets sick, 128,000 are hospitalized, and 3,000 die of food-borne diseases every year.

Despite your best efforts, food can be mishandled or improperly stored before reaching your restaurant. As a result, you might unknowingly serve contaminated food to your customers, causing food poisoning. Food contamination coverage can help reimburse you for expenses, such as loss of income due to a shutdown, advertising to help your business restore its reputation, etc.

You could also experience an extended power outage and lose everything in your freezer. Food spoilage coverage - which typically covers risks such as prolonged power outages, equipment breakdown, etc. - can help reimburse you for the cost of lost food.

There are Ways to Save on Restaurant Insurance Costs,

The good news is that there are plenty of ways you can reduce the cost of your insurance without lowering your coverage. Here are eight tips:

• • • • Focus on Safety
      • Improve Security
      • Hire Wisely
      • Pay Upfront
      • Increase Your Deductible
      • Carry the Right Coverage
      • Bundle your policies
      • Review Your Policies Annually

Final Tip to Save on Restaurant Insurance Costs – Work with an Independent Agent!

As independent agents, the agents at the American Insuring Group compare the cost of your coverage with many insurance carriers to ensure that you get the best price.

So, give us a call at (800) 947-1270 or (610) 775-3848, or connect with us online.