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Slip-Resistant Shoes Help Lower Restaurant Insurance Costs

Posted by David Ross on Sat, Jul 04, 2020

slip-resistant shoes can lower restaurant insurance costsIf you want to lower Restaurant Insurance costs, a comprehensive safety plan is essential. A well-designed and enforced safety program helps minimize the number of injuries. This results in fewer insurance claims, which lowers your insurance costs and provides numerous other benefits, such as improved employee morale and productivity.

But where should you begin with a safety program?

According to the Bureau of Labor Statistics, slips, trips, and falls are the third most common type of work-related injury in the US and the second most common fatal work-related injury. While falling from a higher level resulted in more work-related fatalities, injuries caused by falls on the same level occur more often in restaurants and can cause injury. In fact, the BLS reports that half of all falls from the same level ended in more than ten days away from work.

The most common injuries in same-level falls include sprains, strains, dislocations, and tears to the lower extremities, which are the most expensive category of injuries, costing almost $13 million in Workers’ Compensation costs every year.

So, there’s your answer as to where to begin! Start your safety program by minimizing the risk of falls. Here’s information about one simple step – providing slip-resistant shoes - that can help significantly decrease slip, trip, and fall injuries in your restaurant.

The Study

According to the Centers for Disease Control and Prevention (CDC), “Laboratory studies of slip-resistant footwear to reduce slips, trips, and falls have shown promise in reducing slips, but limited field research made it difficult to demonstrate if slip-resistant footwear actually reduced injuries.”

So, researchers at the National Institute for Occupational Safety and Health (NIOSH) evaluated 17,000 food-service workers in 226 school districts across the US to determine the effectiveness of a program that provided highly-rated slip-resistant shoes at no cost to the workers. The researchers wanted to see if this type of program would reduce WC injury claims related to slipping on greasy or wet floors.

Workers in some of the school districts in the study wore 5-star rated slip-resistant shoes that were given to them at no cost, and workers in other districts wore their own slip-resistant shoes. The shoes provided were designed specifically to prevent slips on greasy or wet floors.

The Results

The districts where workers were provided slip-resistant shoes experienced a 67% reduction in claims for slip injuries. The baseline measure was 3.54 slipping injuries per 10,000 months worked, which was reduced to 1.18 slipping injuries per 10,000 months worked during the time when workers wore slip-resistant shoes that were provided at no cost.

The other districts where workers were not given slip-resistant shoes did not experience any decline in slip injuries.

The study also found that – prior to the study - workers over the age of 55 had a higher probability of a slip-related WC claim (4.2 injuries per 10,000 worker months) than workers under the age of 55 (2.3 injuries per 10,000 worker months). Therefore, as the number of workers over the age of 55 remain active in the US workforce, preventing slipping injuries becomes even more vital if businesses want to keep Workers’ Compensation costs down.

The CDC concluded, “The findings from this study provide evidence of the effectiveness of slip-resistant footwear and may assist employers, managers, and workers in their decision on whether to invest time and resources in a slip-resistant footwear program.”

Additional Tips to Lower Your Restaurant Insurance Costs

American Insuring Group specializes in Restaurant Insurance and is focused on providing the best insurance coverage at the best price. Discover more safety tips on our blog and give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online to discover how we can help you save even more on your Restaurant Insurance costs!

Tags: Restaurant Insurance, workers comp costs, Safety Programs, Restaurant Safety, Restaurant Insurance Costs

Third-Party Food Delivery Liability and Restaurant Insurance

Posted by David Ross on Sat, May 23, 2020


COVID19 food delivery restaurant insurance tips for restaurant ownersThird-party food delivery got a serious boost when Pennsylvania Governor Tom Wolf ordered all restaurants and bars to close their dine-in facilities to help stop the spread of COVID-19, while still permitting carry-out, delivery, and drive-through food and beverage service. Many restaurants began offering food delivery through apps such as Grubhub and UberEats. 

It's crucial that restaurants understand potential liability and how Restaurant Insurance can help.

At the end of January 2020 - before the ordered shutdown - Upserve reported that 31% of people in a survey said they use a third-party delivery service at least twice a week. Imagine how that number has skyrocketed in just a few months!

The use of third-party delivery services has allowed many restaurants to continue serving food without investing in a driver or other infrastructure while their dining rooms remain closed. On the other hand, it has also opened restaurants up to potential new liability and legal ramifications.

Here are four questions to ask about potential liability when using a third-party food delivery app.

Who is Liable if a Customer Gets Sick After Eating Your Food That is Delivered by a Third-Party?

It may be impossible to discover where things went wrong. The illness could have been caused by cross-contamination in your kitchen, or it could have been caused by the food sitting in a hot car too long.

Food delivery services do not fall under the Food and Drug Administration’s jurisdiction, so you may find your restaurant being held liable regardless. Before deciding to partner with a third-party delivery app, ask them if their drivers are required to follow any food safety standards - such as hygiene or temperature control – and who will be held liable if there is an illness.

Who is Liable for Issuing Refunds or Other Compensation if There is a Problem With the Food?

Beyond food contamination and illness, many smaller things can go wrong when you hand over your carefully prepared food to a complete stranger. Food can go cold. A pizza could get flipped over in the box, leaving all the cheese stuck to the lid.

You have no control over what happens to the food once it leaves your restaurant; however, it’s still your restaurant’s reputation on the line if your customers are disappointed with the quality of the food. Make sure that you provide the right packaging for the food on your menu and perhaps limit the delivery distance.

Who is Liable if the Delivery Person is in an Automobile Accident While Delivering Your Food?

The food delivery app probably requires that its drivers all have automobile insurance, but don’t assume they do. Ask what insurance policies they require their drivers to have and how they enforce and monitor the requirement.

A driver can present proof of insurance one day and lose it the next day for nonpayment. It may not be a bad idea for you to require proof of insurance from every driver each time they make a pickup at your restaurant.

Who is Liable if the Delivery Service is Not Sanctioned by Your Restaurant and Something Goes Wrong?

Some food delivery brands deliver food from restaurants without permission from the restaurant owners. So it’s crucial that you clearly advertise which third-party delivery services you have partnered with and include a disclaimer about potential liability from unsanctioned services.

How Can I Protect My Restaurant From Liability Issues?

The best way to protect your restaurant from any liability issues is with the right insurance. Talk to an independent insurance agent who specializes in restaurant insurance – like the agents at American Insuring Group – to make sure you get the lowest price for that coverage. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Restaurant Insurance, Commercial Liability Insurance, Restaurant Liability Insurance, Restaurant Insurance Costs

Help for Restaurant Owners During the COVID-19 Pandemic

Posted by David Ross on Thu, May 14, 2020

Help for restaurant owners in addition to insurance savings during the Coronavirus pandemicAs specialists in Restaurant Insurance, we typically focus on safety and other ways to lower insurance costs. This blog is a little different but has the same goal - to help restaurants succeed.  

Few industries have escaped the negative impact of the COVID-19 public health crisis, including the restaurant industry. Toast reports that restaurant sales are down 80% since the restrictions on restaurant operations and the shelter in place mandates went into effect.

As a restaurant owner, you may feel powerless, but it’s important to know that there are steps you can take to help ensure the health and safety of your employees, your customers, and your business.

The CARES Act

On March 27, the US government passed a stimulus bill called the “Coronavirus Aid, Relief, and Economic Security Act” – or CARES Act – in response to the COVID-19 health crisis. Here are some of the provisions of the Act that could be relevant to restaurant owners and employees.

The Paycheck Protection Program provides $349 billion in federally-guaranteed loans to small businesses. The loan can be used to help pay for employee salary or wages, cash tips, group health care benefits, etc.

The Emergency Relief and Taxpayer Protection provides loans, loan guarantees, and other investments for direct lending that meet specific criteria, such as a lack of alternative financing and a business that is a US-domiciled business with most employees located in the US.

The Employee Retention Tax Credit (ERTC) provides a refundable payroll tax credit for half of the wages paid by employers to employees during the crisis. To be eligible, the employer had to fully or partially suspended operations due to the shut-down order and experience a decline of more than 50% in gross receipts.

Businesses can now carry a Net Operating Loss (NOL) from 2018, 2019, or 2020 back five years. Plus, the taxable income limitation is temporarily removed, allowing an NOL to offset income fully.

The federal excise tax is waived on distilled spirits used for or contained in hand sanitizer produced and distributed under FDA guidance throughout 2020.

The tax filing deadline has been extended to July 15, and estimated tax payments can be postponed.

Temporary Policies

Understanding that the COVID-19 pandemic has changed the way restaurants are doing business, the FDA has implemented a few temporary policies that are in effect during the COVID-19 public health emergency.

The FDA is temporarily allowing restaurants to sell certain packaged food that is not labeled for retail sale during the COVID-19 pandemic. An example would be ingredients you purchased that can no longer be used to prepare restaurant food.

Restaurants are permitted to sell packaged food that lacks a nutrition facts label as long as it does not make any nutritional claims but does contain other required information, such as an ingredient statement, net quality of contents, etc.

Because many restaurants have switched to takeout only and may be experiencing disruptions in food supply chains, the FDA is also allowing some flexibility to chain restaurants and similar food establishments that are typically required to provide nutritional information on menus.

Employee and Customer Safety

To ensure the safety of your employees, continue to follow established food-safety protocols and CDC and FDA COVID-19 recommendations, including the following:

  • Regularly disinfect and clean all workspaces and equipment with a disinfectant spray or disposable wipes, focusing on surfaces that are frequently touched.
  • Prescreen employees (take their temperature and assess any symptoms before they start work).
  • Provide appropriate PPE, such as gloves, face masks, etc.
  • Ensure that employees follow proper hand hygiene by frequently washing their hands with soap and water for at least 20 seconds – before, during, and after food prep, after using the bathroom, after blowing their nose, coughing, or sneezing, etc.
  • Practice social distancing.

Tell employees who are sick to stay home. If an ill employee does come to work, immediately send them home, clean and disinfect their workspace, and consider any employees with close contact to that employee as exposed.

Tell employees that if they know they have been exposed to COVID-19 to tell their supervisor and follow CDC-recommended precautions.

How to Save on Insurance During the COVID-19 Pandemic

Every dollar counts right now, so here are a few tips that could help lower your Restaurant Insurance costs during the COVID-19 pandemic. Check with an experienced insurance agent to determine which of these tips apply to your situation.

  • Lower your estimated payroll on your Workers’ Compensation Insurance.
  • Drop Workers’ Compensation insurance altogether. Purchase again when employees are rehired.
  • Lower the estimated sales on your General Liability Insurance.
  • Change your vehicle usage to pleasure use on your Commercial Vehicle Insurance.
  • If you currently have Liquor Liability Insurance and are not serving liquor, remove the insurance from your policy. Purchase again when you begin serving alcohol.
  • Remove Employment Practices (sexual harassment, discrimination, etc.) coverage if your business is closed, and everyone is laid off.
  • Remove all “non-essential” insurances.
  • Ask your insurance company for maximum discounting due to the pandemic.
  • Ask an independent agent to make some price comparisons on your coverage. With insurance sales down everywhere, you may be able to find a lower rate for the same coverage.

Start Saving on Restaurant Insurance Today!

These are just some of the ways to save on Business Insurance during this pandemic. If you're ready to start saving then give one of the independent agents at American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online. We would love to help you save money on your Business Insurance during these uncertain times!

Tags: Restaurant Insurance, Commercial Liability Insurance, Business Interruption Insurance

How to Protect Your Bakery With Restaurant Insurance

Posted by David Ross on Sat, May 02, 2020

bakeries_restaurant_insuranceMichael E. Gerber wrote a book called The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to do About it. In the book, Gerber introduces us to Sarah, a young woman who starts a bakery business to sell the pies that she loves to bake. Sarah is struggling. She’s working twelve hours a day and becoming frustrated and completely burnt out.

Gerber tells her it’s because she’s working “in” her business rather than “on” her business. She’s so busy baking pies, serving customers, cleaning the shop, etc. she doesn’t have time for vital business tasks, such as strategizing, marketing, etc.

The bottom line is that if you aren’t taking time to figure out how to run your business efficiently, how to grow it, and how to protect it, your business will fail. As an insurance broker, American Insuring Group is focused on helping restaurant owners - including bakery shop owners – protect their businesses with the right Restaurant Insurance.

What Types of Restaurant Insurance Does a Bakery Need?

The best way to determine what types of insurance you need is to think about your risks. Go through “what-if” scenarios. For example, what if there’s a fire in my kitchen, and I have to shut down. How will I pay for the repairs? Can I survive with no income while the repairs are made?

What if my delivery truck breaks down? What if… you get the idea. This exercise will help you determine your risks, so you can learn the best way to protect your bakery from those risks.

An experienced insurance agent can help you determine your risks, what you need to protect, and the most economical way to do that. Here is a list of the most common types of restaurant insurance bakeries need.

Commercial General Liability (CGL) Insurance

CGL Insurance helps cover customer injuries that occur at your bakery, customer property damage, and libel or slander lawsuits. For example, a customer trips and falls while picking up his morning bagels and is injured. You may be responsible for paying his medical bills, and there is always the possibility that he will file a lawsuit against you.

Another example would be if someone were to get sick from eating something they purchased at your bakery. Unfortunately, even if the illness was caused by an ingredient that you bought from someone else, most attorneys will name everyone involved (included the baker) in a lawsuit. Most CGL policies include compensation for third-party claims of injury, illness, disease, or death that was caused by food contamination or food borne illness claims.

Commercial Property Insurance

Going back to the “what-if” scenario, if there is a fire in your kitchen, a Commercial Property Insurance policy will help pay for repairs to your equipment and property. Typically, Commercial Property Insurance covers risks such as fire, power outages, theft, etc.

You can expand your coverage to include Business Interruption Insurance that would help pay for lost revenue or sales that would occur while your bakery is closed for repairs.

Business Owner’s Policy (BOP)

A BOP combines CGL and Commercial Property Insurance and helps lower your insurance costs.

Workers’ Compensation Insurance

In Pennsylvania, almost all businesses with one or more employees are required by law to have Workers’ Compensation (WC) Insurance. WC helps pay for medical expenses and lost wages if an employee is injured on the job and protects the employer against accident-related lawsuits by injured employees.

Commercial Vehicle Insurance

If you have a vehicle that you use for business purposes – such as making deliveries, you need Commercial Vehicle Insurance. It covers medical costs and property damage that result in an accident that involves your vehicle.

How Can a Bakery Minimize the Cost of Insurance?

If you’ve decided to work on your business rather than just in your business, you need to take steps to protect your business. The American Insuring Group has agents who specialize in Restaurant Insurance to help you determine your risks and the best way to protect your business. Plus, as independent agents, we compare the cost of your coverage with several insurance companies to ensure you get the best price for that coverage.

Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Restaurant Insurance, Restaurant Insurance Philadelphia PA, Restaurant Insurance Costs

Will a BOP Lower Your Contractor or Restaurant Insurance Costs?

Posted by David Ross on Sun, Mar 01, 2020

Business Owners Policies to Supplement Your Contractor Insurance or Restaurant InsuranceAs a contractor or restaurant owner, you’re probably looking for ways to cut costs and improve your bottom line. A Business Owners Policy – or BOP – is a flexible and affordable way to save on Commercial Insurance, but it isn’t right for every business.

An experienced insurance agent – like the independent agents at American Insuring Group – can help you determine if it’s right for your business.

Here’s what you need to know.

What Is a Business Owners Policy (BOP)?

A BOP combines Commercial General Liability (CGL) Insurance and Property Insurance – two types of insurance most business owners need to protect their business - at a discount.

Commercial General Liability Insurance, which may be required by a client or landlord, typically covers lawsuits that result in bodily injury or property damage that is caused by slip-and-fall accidents, third-party property damage, product liability, advertising injuries, and copyright infringement.

The expense of a lawsuit can have a devastating impact on a small business. According to a U.S. Chamber of Commerce report, legal issues are costing small US businesses more than $100 billion every year. Because small businesses are more likely to settle rather than get tied up in litigation, they are often the target of frivolous lawsuits, which is costing about $35.6 billion in settlements each year.

CGL does not cover employee injuries, which are typically covered by Workers’ Compensation Insurance.

Property Insurance covers damage to your building and its contents due to a covered cause of loss, such as a fire, explosion, storm, theft, or vandalism. Most Property Insurance policies do not cover earthquakes and floods; however, some policies cover a loss of income or an increase in expenses that result from property damage that is covered.  

For example, if a fire in your oven causes you to shut-down for a few days until repairs can be made, Property Insurance may include Business Interruption Insurance to cover the income you would lose by shutting down.

Another example is a fire in a contractor’s office that destroys files or materials required to conduct business.

Do I Qualify For a Business Owners Policy

Although they can save businesses money, BOPs are not right for every business, and not every business will qualify for a BOP. Typically, low-risk small businesses that meet the following criteria will qualify for a BOP:

  • A small workspace
  • Less than $1 million in revenue per year
  • Fewer than 100 employees
  • A low-risk industry
  • A less than 12 months of Business Interruption Insurance requirement

As a contractor, you may think that your business is not a low-risk industry. Heavy construction, along with mid-sized and large construction businesses, may not qualify for a BOP, which is more appropriate for small contractors or subcontractors. However, it’s always a good idea to ask your insurance agent if this would be a good addition to your overall contractors insurance.

Is a BOP Right For My Business?

BOPs typically have a cap on policy limits – the maximum amount the policy will pay in the event of a claim. Make sure your CGL limit is enough to cover the cost of a potential lawsuit and make sure your Property Insurance limit would cover the value of your property.

If a BOP provides enough protection for your business, it could save you money.

What Doesn’t a BOP Cover?

The basic coverage of a BOP may not cover certain circumstances. For example, contractors may discover that equipment that is transported or stored on a job site may not be covered under CGL; that is what Inland Marine Insurance is designed for.

A restaurant owner who serves alcohol may find that a BOP may not cover a lawsuit that arises from an intoxicated person served at your restaurant; that’s what Liquor Liability Insurance for your restaurant covers.  

 

How Else Can I Save on Contractor or Restaurant Insurance?

To save even more on your business insurance costs, work with an independent insurance agent like those at American Insuring Group who 1) specialize in contractor and restaurant insurance, and 2) can compare the price and quality of your coverage among several competing insurance companies.

American Insuring Group has you covered. Give one of our experienced independent agents a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

We serve the greater Philadelphia, Reading, Pittsburgh, Lehigh Valley, Harrisburg, Lancaster, Erie, PA region and beyond.

Tags: Restaurant Insurance, Contractor Insurance, Small Business Insurance, Commercial Insurance

How Can Business Interruption Insurance Save Your Business?

Posted by David Ross on Sun, Dec 29, 2019

Business_Interruption_Insurance (2)Do you have Business Interruption coverage for your business? No? Let me ask you this… What would you do if there was a fire in your building, and you were forced to shut down while repairs were made?

If your business is shut down, you probably won’t have customers. If you don’t have customers, you probably won’t have any income to pay yourself or your employees. According to FEMA, nearly 40% of small businesses never reopen following a disaster.

That’s where Business Interruption Insurance can help.

What is Business Interruption Insurance?

Business Interruption Insurance (Aka Business Income) is typically an endorsement that can be added to most Commercial Property Insurance policies. It protects your business income that is a direct result of a loss, damage, or destruction of your property that is covered by your Commercial Property Insurance.

Additional Coverage to Consider

Extended Period of Indemnity

Some policies include a 30-day extension beyond the standard period of restoration; however, you may need more than the 30-day extension. Sometimes, it takes a while to get a business up and running following an extended closure. Therefore, you may want to consider buying an extended period of indemnity option endorsement, which increases that 30-day extension in multiples of 30, up to 720 days.

Extra Expense Coverage

If your property is damaged, you may incur additional expenses to keep your business running. Those expenses could include the cost of moving to a temporary site, leasing equipment, paying overtime, etc. Extra Expense coverage pays for expenses that are above and beyond your normal operating costs but are required to keep your business running after your property is damaged.

Service Interruption Coverage

One in four companies experience a power outage at least once a month, according to Bloom Energy, and it’s estimated to be costing the U.S. economy $150 billion annually.

If a utility company – such as electrical, gas, water, telephone, etc. – experiences damage to a property that is not on your premises but causes an interruption in your business operations, or an actual financial loss, Service Interruption Coverage may kick in.

Contingent Business Interruption (CBI)

CBI covers your business income loss that is a result of loss, damage, or destruction of properties owned by suppliers of goods and services that you need to run your business. The damage must be the type of damage that your Commercial Property Insurance policy covers.

Leader Property Endorsement

This endorsement helps protect your business if an off-premises facility within a certain distance of your property incurs property damage that affects your business. This endorsement is good for restaurants that rely on the customers coming from another venue, such as a casino, stadium, or amusement park.

Interruption by Civil or Military Authority

If a civil or military authority denies you access to your property, this type of policy may cover lost business sustained during the time you are denied access. This type of thing can happen during a hurricane, winter storm, flood, etc.

 

How to Save Big on Business Interruption Insurance

Sometimes it’s hard to think of every risk that your business may face, and insurance policy verbiage can be complicated. This is why an experienced insurance agent is vital if you want to understand your risks and options and protect your business.

The independent agents at American Insuring Group specialize in Commercial Insurance. They can not only ensure that you have the right coverage they can also ensure that you pay the lowest price for that coverage by shopping among many competing providers for you. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

 

Tags: Restaurant Insurance, Commercial Insurance, commercial property insurance, Utility Service Interruption Insurance, Business Interruption Insurance

What You Need to Know About Restaurant Insurance

Posted by David Ross on Sun, Dec 22, 2019

save_restaurant_insuranceWhen it comes to Restaurant Insurance, there is no one-size-fits-all solution. Every restaurant has different assets that need to be protected, different risk factors, and different types of liability. And every restaurant owner has different levels of comfort when it comes to those risks and liabilities.

Restaurant Insurance can be very complicated if you aren’t familiar with the risks, your different insurance options, and typical exclusions. Here is some basic information about Restaurant Insurance to help ensure that you get the best insurance for your needs.

Insurance Coverage Your Restaurant May Need

With all the different types of insurance coverage available today, including some rather odd ones like chicken insurance and alien abduction insurance (we kid you not!), it’s best to start with the basics and add additional coverage IF you need it. Here are three basic types of coverage every restaurant owner should consider.

Commercial General Liability (CGL) Insurance

CGL protects your business from bodily injury, personal injury, or property damage caused by your restaurant or on your restaurant’s premises. For example, if someone is injured after falling on your property or becomes sick after eating your food, they can sue you. Commercial Liability Insurance will pay for your legal expenses such as attorney fees and judgments against your restaurant. 

It’s important to consider your risks and determine if your CGL policy will cover it or if it is an exclusion. For example, if you serve alcohol to a customer who then causes a car accident upon leaving your restaurant, you could be held liable for any damage or injury caused by the accident. Most CGL policies won’t cover you in that situation, but Liquor Liability Insurance will.

Property Insurance

Property Insurance protects many of your assets, such as your building and your equipment from fire, storm, or theft damage. It may also include Business Interruption Insurance that covers lost income if damage forces you to close your restaurant temporarily.

Workers’ Compensation Insurance

In Pennsylvania, if you have one or more employees – whether they are full- or part-time, you are probably required to carry WC Insurance for each of your employees. WC covers medical expenses and lost wages if your employee is injured on the job. It also protects you against lawsuits filed by an injured worker.

Those are the basic coverages, but depending on your situation, there may be other types of insurance to consider. For example, if you use a vehicle for business, you should have Commercial Auto Insurance for that vehicle, whether it is owned or leased or even if it belongs to an employee.

An insurance agent who specializes in Restaurant Insurance can help you identify any additional risks and determine the best way to cover those risks.

How is the Cost of Your Restaurant Insurance Determined?

Every restaurant is individually underwritten based on the circumstances of its establishment. You will be asked many questions when you apply for insurance, and insurance companies will do some of their own research before quoting you a price. Your costs will be based on how much risk or liability you restaurant poses, the value of what you need to protect, and the level of your coverage.

To determine your risk (how likely you are to make a claim), insurance companies will look at your loss history, years in business, hours of operation, whether or not you sell alcohol and if so, how much, activities within your restaurant, such as entertainment, ID checkers, etc.

To determine the value of what you need to protect, they will look at the size of your property, the volume of your sales and payroll, the type of property, etc.

The level of coverage will be based on several things, including lease requirements, lender requirements, and how comfortable you are with risk.

When you talk to your insurance agent, be open and honest about the operation of your restaurant. Otherwise, you might find yourself in a situation where you don’t have enough coverage or any coverage when you need it.

How to Save Big on Restaurant Insurance

Because American Insuring Group’s agents have experience in Restaurant Insurance, we can help identify risks that are typical for restaurants as well as risks unique to your establishment to ensure that you have the right coverage to protect your assets. As independent agents, we can check with several companies to ensure that you get the best price for that coverage.

Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online and let us show you how we can lower all your Commercial Insurance Costs!

 

Tags: Workers Compensation Insurance, Restaurant Insurance, PA Workers Compensation Insurance, Commercial Liability Insurance, commercial property insurance, Restaurant Insurance Costs

Do You Have the Right Restaurant Insurance Coverage?

Posted by David Ross on Sun, Nov 24, 2019

AIG Cook with questionmarksWhether you are a new restaurant owner or have been in business for decades, Restaurant Insurance can be complicated. You probably have lots of questions, such as what insurance do I really need to protect my business and what insurance can I do without.

There aren’t any cookie-cutter answers to these questions because every restaurant has different types and levels of risks, and every restaurant owner has different levels of risk they are comfortable with.

Here are 7 Tips to Help You Get the Right Insurance for Your Restaurant:  

Understand What Factors Affect Your Insurance Rates:

Many factors go into the cost of your restaurant insurance. Some you have control over and some you do not. Understanding which factors can affect the cost of your insurance allows you to make informed business decisions.

For example, if you’re thinking about serving alcohol at your restaurant, you can go to your insurance provider to determine just how much that decision would increase your premiums. Maybe you determine that the increased revenue will be worth the increase in your insurance premiums, or maybe you determine that it is not. The bottom line is that you made a sound business decision because you had the facts.  

Here are ten factors that can affect the cost of your insurance premiums:

  1. Years in business
  2. Location
  3. The volume of your sales, payroll, and square feet
  4. Type of property
  5. Lease requirements
  6. Loss history
  7. Activities
  8. Hours of operation
  9. The sale of alcohol
  10. Level of coverage

Make Sure Your Restaurant is Properly Classified

Your restaurant’s classification will affect both your Workers’ Comp Insurance as well as your General Liability Insurance costs. If you own a diner that is only open from 6 am to 2 pm, you want to make sure that you are not given the classification of a bar that stays open until 2 am. There are more risks for a bar staying open until 2 am, and you will pay a higher premium due to those risks.

It’s in your best interest to be honest with your insurance agent about the type of restaurant you own. For example, if you neglect to tell him or her that you serve alcohol, and someone who was served alcohol at your restaurant causes an accident, you may not be covered. One nasty lawsuit against your restaurant could easily put you out of business without the proper protection.

Ask About Pay as You Go Workers’ Compensation Insurance

Most businesses in Pennsylvania are required to carry Workers’ Compensation Insurance for their employees. Most insurance carriers require a 25% estimated premium upfront. If you have a lot of employees, that could do some serious damage to your cash flow.

Pay as you go Workers’ Compensation Insurance allows you to pay your premium each month based on your actual payroll rather than an estimate. Pay as you go is particularly helpful for new restaurants that don’t yet know how much their payrolls will be. Pay as you go WC Insurance also eliminates the need for audits.

Don’t Assume That You Do Not Need Commercial Auto Insurance

If you have a vehicle that either you or your employees use for your restaurant, you will need commercial insurance coverage. Even if your employees use their vehicle to run errands like making bank deposits, you may still be held liable if they are in an accident. A non-owned auto policy can help cover your restaurant in that situation.

Consider Cyber Liability Insurance

Just because you are a small business doesn’t mean that you are not at risk for a data breach. In fact, according to Small Biz Trends, 43% of cyber attacks still target small businesses. According to IBM, the average total cost of a data breach in the US is $3.92 million. Of course, this number is skewed due to the really big data breaches like Target experienced, but even having a few of your customers falling victim to a data breach could cost your business thousands of dollars, along with your reputation.

Ask About a Business Owner’s Package (BOP)

A BOP bundles your insurance policies together. Most insurance companies like to bundle your policies because it means more business for them, and bundling policies usually means a discount for you as well.

Bundling with one company also helps ensure that there are no gaps in your coverage, and it could speed up the processing of any claims you have to file.

Understand the Difference Between a Captive Agent and an Independent Agent

A captive agent only represents one company. The agents at the American Insuring Group are all independent agents, which means they can compare the cost of your coverage with several different companies. Often, this means lower premium payments for you.

How to Save Even More on Restaurant Insurance

Perhaps the best way to save on Restaurant Insurance and still ensure that you have enough coverage to protect your restaurant is to work with an insurance agent who is familiar with your industry and its risks, like the independent insurance agents American Insuring Group.

We specialize in Restaurant Insurance and will compare pricing and coverage among lots of insurance companies to find you the very best deal. Don't delay - call us at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Workers Compensation Insurance, Commercial Vehicle Insurance, Restaurant Insurance, Restaurant Insurance Costs

A Clean Kitchen Can Reduce Restaurant Insurance Costs

Posted by David Ross on Mon, Nov 04, 2019

AIG man cleaning kitchen counterIf you are a restaurant owner or manager, you already understand how vital a clean kitchen is to the safety of your customers. But have you ever considered how a clean kitchen can save you money, such as lowering your restaurant insurance and litigation costs?

Unfortunately, with so many other responsibilities, keeping a restaurant kitchen clean can be a real challenge. Having a cleaning and sanitizing process in place (and strictly enforced) can help make the process much easier.

First, we’re going to remind you why a clean kitchen is key to any restaurant's success and then provide some tips to help you create a cleaning and sanitizing process for your restaurant.

4 Reasons to Maintain a Clean Restaurant:

Keep Your Customers Safe

The obvious reason to keep restaurants – from kitchens to dining tables - impeccably clean is to avoid cross-contamination and food-borne pathogens that can make your customers sick. Also, a buildup of grease that is not properly cleaned can cause a fire putting employees, customers, and your bottom line at risk.

Pass Restaurant Health Inspections

Health inspections are real and can occur at any time – typically one to four times a year. Having a process in place to keep your restaurant clean helps ensure that your restaurant passes health inspections and helps you avoid fines (or closure) if you don’t pass inspection.

Two of the most common health code violations are poor kitchen sanitation and cross-contamination that can lead to food illness; therefore, maintaining a clean restaurant at all times should be your goal.

Maintain a Good Reputation

Having a clean restaurant – both front-of-house areas and behind the scenes - is imperative to your restaurant’s reputation. People will not dine at a visibly dirty restaurant (at least not more than once), and having your restaurant shut down because of a health violation doesn’t exactly instill confidence in your customers.

Keep Restaurant Costs Down

A clean restaurant can help minimize the cost of legal fees and medical costs; thereby, helping to lower your restaurant insurance costs. Plus, a sanitized and clean kitchen helps cut down on food waste.

How to Maintain a Clean Restaurant?

One of the biggest challenges when it comes to sanitation and food safety is the control of bacteria, parasites, viruses, toxins, chemicals, and pathogens like Norovirus and Listeria, which can result in food-borne illness.

On average, one in ten people will become ill, and 420,000 will die every year after eating contaminated food, according to the World Health Organization (WHO).

Food contamination can occur at any time during food production, distribution, and preparation. Any surface that touches food must be regularly cleaned and sanitized – including countertops, cutting boards, dishes, utensils, flatware, tables, microwaves, and even high chairs.

Having a cleaning and sanitizing process in writing, training all employees on that process, and enforcing that process are key to a clean restaurant. Here are some tips for developing that process in your restaurants.

Basic Steps to Clean All Surfaces:

  1. Remove debris from the item by scraping or rinsing it.
  2. Remove soil by washing the object in detergent.
  3. Rinse with hot water.
  4. Sanitize with a chemical sanitizer or hot water (180F) to reduce pathogens. Sanitization reduces 99.999% of pathogenic microorganisms.
  5. Air dry. Do not rinse or use a towel to dry it after it has been sanitized.

What Should Be Cleaned and When?

While preparing food, cooks should practice basic food safety procedures, such as switching cutting boards and brushing grills between cooking fish, poultry, and red meat.

Tasks performed after each shift should include tasks such as cleaning cooking equipment; washing utensils, plates, and glassware; and sweeping and mopping the floors.

Daily tasks include cleaning out grease traps and running hood filters through the dishwasher.

Weekly tasks should include emptying, washing, and sanitizing reach-in coolers; cleaning coffee machines; and using drain cleaners on floor drains.

Monthly tasks should include things like cleaning freezers, emptying and sanitizing ice machines, washing walls and ceilings, and wiping down storage areas.

There are also annual tasks (that aren’t exactly cleaning but are important), some of which may require a professional, such as checking the fire suppression system, fire extinguishers, the hoods, and pilot lights on gas equipment.

The Webstaurantstore offers a printable checklist that you can start with, but creating checklists specific to your restaurant ensures that everything is covered.

Want to Save Even More on Your Restaurant Insurance?

American Insuring Group specializes in restaurant insurance and offers an extensive blog that provides information about how you can save on restaurant insurance. Plus, as independent agents, we can compare costs with several companies to ensure that you get the best price.  Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Restaurant Insurance, Small Business Insurance, Commercial Insurance, Restaurant Safety

Valet Service Impacts Restaurant Insurance Costs

Posted by David Ross on Sun, Oct 20, 2019

Restaurant_Insurance_Valet_Parking_300If you’re trying to set your restaurant apart, you may consider offering valet service. This service could make sense if you have limited parking at your restaurant or just want to offer a service that goes above and beyond what is expected.

If you decide that valet service is something that you want to offer your customers, do a little research first to understand your risks and how to protect your restaurant from those risks.

Parking lots and garages may seem like safe places, but it’s that false sense of security that contributes to the fact that one out of every five motor vehicle accidents takes place in a parking lot. Tens of thousands of accidents occur in parking lots and garages every year, resulting in hundreds of deaths and thousands of injuries, along with property damage to vehicles and structures, according to the National Safety Council.

The good news is that the right Restaurant Insurance coverage can help protect your restaurant from liability, injuries, and damage these accidents cause.

Valet Service Options and the Risks

If you decide to hire your own drivers, they become your employees, which means your restaurant is held liable for their actions. Therefore, you would want to make sure that your Commercial Liability Insurance for your restaurant covers any incidents.

The advantage of hiring your own drivers is that you have control over who is hired to drive your customers’ vehicles and how they are trained.

Here Are Three Save Driving Tips to Share With Your Drivers:

  1. Slow down – Don’t drive any faster than 5-10 mph unless there are posted speed limits.

  2. Pay Attention – Pay attention to pavement markings and traffic signs. Use extra caution while backing out of a space. Every year, about 300 deaths and 18,000 injuries are caused by drivers backing out of parking spaces and driveways. Watch for pedestrians and other cars, and take advantage of backup cameras available in most cars today.

  3. Don’t Get Distracted – Don’t text while driving or walking in a parking lot or garage.

The second option is hiring a third-party company, which significantly lowers your risk but does take away your control of the hiring and training of drivers. You would still need insurance to protect your property if a driver causes damage.

Restaurant Insurance Options for Valet Service

Here are some types of insurance you may want to consider if you decide to add valet services for your restaurant:

  • Commercial General Liability (CGL)– CGL should cover damage to customers’ cars caused by your driver.
  • Workers Compensation – State laws require most businesses that have employees to have WC Insurance. It pays medical expenses and lost wages incurred if an employee is injured on the job along with legal costs if an employee sues you over the injury.
  • Employee Dishonesty – This insurance covers lost or stolen items in a customers’ vehicle, which is not covered by CGL.
  • Garage Liability Insurance – This is a type of umbrella policy that adds a layer of protection to your General Liability Insurance and helps protect your business from property damage and bodily injury
  • Garage Keepers Coverage – This insurance covers damage to your customers’ vehicles.

As with any insurance policy, there are exclusions and limitations to these types of insurance. For example, if your driver parks and locks the vehicle properly and it is vandalized, broken into, or receives weather-related damage, your insurance would NOT cover it. The vehicle owner’s insurance should cover in that situation.

A Good Insurance Agent Can Help You With All Your Commercial Insurance Needs

The independent agents at American Insuring Group specialize in commercial insurance, including Restaurant Insurance. Plus, as independent agents, we check with multiple insurance companies to ensure that you get the right coverage at the best price.  Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Restaurant Insurance, Commercial Insurance, Restaurant Insurance Costs