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Restaurant Insurance is designed to help protect you as an owner, your business, and your employees in the event of an unforeseen circumstance, such as an employee injury, lawsuit, kitchen fire, etc. But have you thought about how you would protect your business, employees, and family if something were to happen to you and you were no longer able to run the business?

Most small businesses – including restaurants - rely on their owner (or another key person) to keep the business running. If that person is disabled or dies, there could be severe consequences to the business, employees, and the owner's family. Here is how the right insurance can help prevent that from happening.

Personal Life Insurance

Personal life Insurance for business owners is particularly important since you may not have employee benefits such as group life insurance, a retirement account, etc. Personal life insurance for business owners helps your family survive financially if something happens to you. It covers costs such as income replacement, credit card debt, college tuition for your children, mortgage, etc.

When determining how much coverage you need, don't forget to consider any loans you took out to start or grow your business, especially if you used personal property – such as your home – as collateral. Those loan payments don't go away if you die; they become your family's responsibility.

The types of personal life insurance available are term life insurance, universal life insurance, or whole life insurance.

Term Life Insurance is the most popular type of policy. Rates are usually guaranteed for a certain period of years (i.e., for a term). People typically purchase term insurance as a way of obtaining cheap life insurance coverage for their families in case they pass away unexpectedly.

Whole Life Insurance provides coverage for your entire life. This form of life insurance generally has a guaranteed premium for life that does not increase as you age. Whole life insurance is more expensive than term life insurance, but unlike term life insurance, it builds cash value through dividends and interest.

Universal Life Insurance is a hybrid of term life insurance and whole life insurance. Typically, premiums stay level, and dividends or interest are earned on the cash value in the policy. This type of life insurance policy is usually suited for someone who wants a level premium for life but is willing to give up certain guarantees to achieve a lower insurance cost.

Buy-Sell Agreement and Life Insurance for Co-Owners

A buy-sell agreement (aka buyout agreement) is defined as "a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business or chooses to leave the business." It's often thought of as a pre-nuptial agreement between business partners or shareholders. Most business-succession specialists and financial planners recommend adding life insurance (earmarked as money to pay for a buyout) to simplify the process.

Key Person Insurance

Entrepreneur defines Key Person Insurance as "Life insurance on a key employee, partner or proprietor on whom the continued successful operation of a business depends. The business is the beneficiary under the policy." Key people are individuals who are crucial to your business – the people whose "absence would sink the company."

This type of life insurance can help cover expenses such as business loans, the cost of replacing you (or the key person), severance for employees if the business is forced to close, and buying back the key person's shares in the company.

How to Find Affordable Insurance

The right insurance will protect all of your stakeholders - your business, employees, customers, partners, etc. – and your family if the unthinkable happens. Still, you don't want to pay more than necessary for that protection. Fortunately, American Insuring Group provides quality restaurant insurance at affordable prices. Our independent agents shop the market to find you the best insurance to meet your needs at a great price.

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

Restaurant Insurance can be complicated; however, the right insurance can protect you, your restaurant, and your employees. You don't want any gaps in coverage, but you also don't want to pay more than you need. Unfortunately, seven common restaurant insurance myths often cause one or both of these to happen. 

7 Common Restaurant Insurance Myths

MYTH 1: A general liability policy or umbrella policy will cover me.

FACT: General liability insurance helps protect your business "premises" from exposure (risk), such as trip and fall hazards. However, it does not protect your business if you serve too much alcohol and an injury occurs, an employee gets hurt, or your catering van is totaled. 

Commercial Umbrella Insurance offers additional coverage on liability claims on your existing insurance policies. If a claim exceeds your policy's limit, it provides a buffer or safety net. It does not provide primary liability coverage. It only goes into effect when a claim exceeds the policy's limits. 

MYTH 2: I'll be paying for coverage I don't need.

FACT: Restaurant Insurance should not be one-size-fits-all because every restaurant is unique. American Insuring Group specializes in Restaurant Insurance, so we know what questions to ask you to ensure that your risks are covered without having the insurance coverage you don't need. 

MYTH 3: I don't need Workers' Compensation Insurance.

FACT: Most states, including PA, require employers to carry WC for their employees. The PA Department of Labor & Industry states, "Workers' compensation coverage is mandatory for most employers under Pennsylvania law. Employers who do not have workers' compensation coverage may be subject to lawsuits by employees and to criminal prosecution by the commonwealth." This includes both full and part-time employees, even if they are family members. There are very few exceptions.

MYTH 4: You can skip commercial auto insurance.

FACT: This is true only if you or your employees NEVER use a vehicle for business. However, your personal auto insurance will probably not cover injuries or damage if a vehicle (owned by the business, you, or someone else) is being used for business purposes.

MYTH 5: Only big restaurant chains get sued.

FACT: According to the Zebra, 36% to 53% of small businesses are sued annually, and the average liability suit costs at least $54,000. Furthermore, SCORE reports, "The financial hits of litigation can be far more damaging to small businesses than to large ones, which often staff in-house legal counsel and devote a portion of their budget to legal defense."

MYTH 6: Small restaurants are safe from cyber-attacks.

FACT: Forbes reports that 43% of cyber-attacks are targeted at small businesses. "If you're still in denial about the chances of your small business becoming a victim, 61% of all SMBs [small to medium-sized businesses] have reported at least one cyber-attack during the previous year," Forbes states. "Despite the staggering numbers, 91% of small businesses haven't purchased cyber liability insurance. This truly reflects how unaware and unprepared small business owners are to deal with security breaches." 

MYTH 7: Restaurant insurance is too expensive.

FACT: The right insurance policy protects your business, provides peace of mind, and can be extremely affordable. Without insurance, one significant accident or lawsuit could put your restaurant out of business, making insurance a smart investment. 

How to Lower Restaurant Insurance Costs

Understanding Restaurant Insurance is the best way to ensure you have the right insurance without gaps or paying for coverage you don't need. As Restaurant Insurance specialists, the American Insuring Group can help. Plus, as independent agents, we compare the cost of your coverage among many insurance companies to help you get the right coverage at a great price!

So give us a call at (800) 947-1270 or (610) 775-3848, or connect with us online to start saving on Restaurant Insurance today.

COVID has undoubtedly brought the importance of health and safety to the forefront of every restauranteur’s mind. The good news is that creating a safer restaurant has many benefits for restaurant owners and managers, including lower Restaurant Insurance costs. 

That’s why we often discuss tips to keep restaurant employees safe, such as proper training and appropriate PPE, in this blog. However, prioritizing customer safety is just as crucial to the health and well-being of your restaurant. A sick or injured customer can increase your Restaurant Insurance costs and affect your restaurant’s reputation and bottom line. 

Here are some important tips for keeping your customers safe and your restaurant prospering. 

It’s that time of year – Christmas parties, New Year’s Eve, the Super Bowl, followed quickly by St. Patrick’s Day. It’s a busy time for restaurants, and it’s also a time when Restaurant Insurance is more crucial than ever! And if you serve alcohol, Liquor Liability Insurance should be part of your insurance portfolio, especially if your business operates in one of the thirty-five states with dram shop liability statutes – such as Pennsylvania, New York, and New Jersey. 

What is the Dram Shop Liability Statue?

“Every day, 29 people in the United States die in motor vehicle crashes that involve an alcohol-impaired driver,” according to the Centers for Disease Control and Prevention (CDC). “This is one death every 50 minutes. The annual cost of alcohol-related crashes totals more than $44 billion.” 

In an attempt to prevent drunk drivers from hitting the roads, many states have increased DUI penalties, raised sales taxes on beer and liquor, and/or tried lowering the legal drinking age. Thirty-five states and the District of Columbia have also instituted dram shop liability laws that allow individuals who are hurt by drunk drivers to sue the bar or restaurant that served the alcohol to the drunk driver. 

Justice Guardians describe Pennsylvania’s dram shop liquor liability as follows: “Under the state’s Liquor Code, any licensed establishment that sells alcohol to a visibly intoxicated patron can be held liable for injuries caused by that patron after they leave the premises.” Those injuries can be caused by fights, falls, car accidents, etc. Justice Guardian also states, “Courts in the state [PA] have almost unanimously considered this liability to be ‘negligence per se.’ That means victims probably won’t have to prove the vendor was negligent in any way other than serving alcohol to a visibly-intoxicated patron.” 

How Can You Lower Liquor Liability?

Prepare for larger crowds

If you expect larger than normal crowds – like on Superbowl Sunday – have extra servers and bartenders working to help track alcohol consumption and consider hiring security to control unruly or intoxicated customers.

Establish a Policy Regarding Liquor Service

Have a written policy that clearly states you have zero tolerance for serving minors and directions on how and when to refuse service. You should also have an incident reporting system in place.

Be Prepared to Refuse Service

Your servers have the right to refuse alcohol to anyone who appears intoxicated. And yes, we realize that the more drinks you sell, the more you make, but is it worth the hassle of a lawsuit or a hit to your restaurant or bar’s reputation?

Card Everyone

If caught serving alcohol to minors, you will lose your liquor license, so ensure that your servers card everyone.

Train Your Staff

Staff should know and understand your liquor service policy, know how to measure alcohol correctly, so they don’t over-serve a customer, and be able to identify the signs of intoxication.

Provide Water

Medical News Today states, “When a person hydrates by drinking plenty of water, it can give their liver time to metabolize the alcohol in their body, as well as spacing out the alcoholic drinks they consume.” Therefore, providing water, even if they don’t ask, can help minimize the risk of intoxication.

Serve Food

Medical News Today also states that eating before drinking can slow the processing of alcohol, and eating while drinking may help customers drink slower. You may consider keeping pretzels or chips out for customers to snack on or offering discounted food specials.

Provide Alternative Transportation

You never want to let an intoxicated person behind the wheel of a car. At the very least, you can display the phone numbers of transportation services available or try to partner with Lyft or Uber to offer discount rides. You may even want to call a taxi for an intoxicated customer. It’s a small price to pay for the safety of your customers and the public (not to mention the cost of a lawsuit).

Purchase Liquor Liability Insurance

Suppose, despite all of your best efforts, you get sued for serving alcohol to someone who has caused damage or injury. In that case, Liquor Liability Insurance is your safety net (and may be required by your state or financial institution if you serve alcohol). Liquor Liability Insurance typically covers legal costs, settlements or judgments, repair costs, and medical bills. 

How to Save on Liquor Liability Insurance

The agents at American Insuring Group specialize in Restaurant Insurance, so they understand your unique challenges and can help protect your business with the right insurance coverage. As independent agents, we compare rates among multiple insurance carriers to ensure you pay the lowest premium for Liquor Liability Insurance and all your commercial insurance needs.

Contact us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Injuries within your restaurant can significantly increase the cost of Restaurant Insurance and other costs, damage your restaurant’s reputation, lower productivity, and more. Therefore, understanding and minimizing the risk of injuries is crucial to business success. One of the most significant risks restaurants encounter is falls. 

According to ISSA, “More than 3 million food service employees and over 1 million guests are injured annually as a result of restaurant slips and falls.” They also report that “slips and falls are the greatest source of general liability insurance claims within the restaurant industry.” 

You may not be able to avoid all slips and falls in your restaurant, but there are steps you can take to minimize the risk. 

1. Install high-traction, slip-resistant flooring. You can confirm slip resistance with a coefficient of friction (COF) audit.
2. Immediately clean up spills, pick items off the floor, and keep walkways clear of clutter.
3. Use maintenance and floor cleaning products with slip-resistant characteristics compatible with your flooring surfaces. Check out the National Floor Safety Institute (NFSI).
4. Pay special attention to permanently installed features, such as carpets and mats. They need to be properly maintained and cleaned to avoid trip hazards. NFSI-certified mats are an excellent investment.
5. Conduct and document regular hazard inspections. Regularly walk around your restaurant looking for hazards, such as wet floors, uneven surfaces, and blocked or dimly lit areas. Document the hazard, when it appeared, and what you did to eliminate it. Documenting this information helps provide proof that you are serious about maintaining your property and keeping it safe for employees and customers.
6. If you discover a hazard that can’t be fixed immediately, alert employees and visitors to the danger with warning signs.
7. Install a surveillance system to monitor for situations that may pose a risk. Cameras can also record accidents to help expedite the resolution of any claims and minimize the risk of false claims.
8. Train employees on established safety procedures, cleaning operations, and inspection procedures. Train workers to apply floor cleaning and maintenance products following the manufacturer’s recommendations. Keep records of all employee training, including individuals trained, subject matter covered, training materials, and the date of the training.
9. Require slip-resistant shoes. A Centers for Disease Control and Prevention(CDC) study 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.” 

IIf – despite all your best efforts – an injury does occur, immediately ensure that the injured person receives appropriate medical attention, complete an incident report, and notify your insurance company as soon as possible. 

Lower Your Restaurant Insurance Costs!

The American Insuring Group is committed to providing information about Restaurant Insurance and tips to improve safety with our weekly blog. From protecting your restaurant from cyber threats to minimizing the risk of an allergic reaction in your restaurant and from protecting your restaurant against lawsuits to creating a safe outdoor dining space your customers will love (and everything in between), we’re here to help your restaurant succeed! 

In addition, when you work with one of our Restaurant Insurance specialists, we help ensure you have the right coverage for your needs. And as independent agents, we check with multiple insurance companies to ensure you pay the lowest price for that coverage.

✔︎ So call us at (800) 947-1270 or (610) 775-3848, or connect with us online to discover how we can help lower your Restaurant Insurance costs.

Creating a safe workplace helps protect your business, maintain a good reputation, and lower the cost of Restaurant Insurance and other expenses. Safety should be a priority in any industry, but perhaps more so in restaurants where many potential hazards exist - sharp knives that can cause injuries, hot fryers that can trigger fires, food that can become contaminated, etc. 

If you want your business to succeed, you must be diligent about creating and maintaining a safe restaurant. So here is – as they say – the proof in the pudding:

• According to the U.S. Bureau of Labor Statistics, in 2019, there were 93,800 nonfatal injuries and illnesses in full-service restaurants, with about one-third requiring at least one day away from work.
  
  
• According to the National Fire Protection Association (NFPA), “U.S. fire departments responded to an estimated average of 7,410 structure fires per year in eating and drinking establishments between 2010 and 2014. These fires caused average annual losses of three civilian deaths, 110 civilian injuries, and $165 million in direct property damage each year.”
  
  
• According to the National Library of Medicine, approximately 48 million cases of foodborne illness occur in the U.S. every year, resulting in about 128,000 hospitalizations and 3,000 deaths. Furthermore, between 2006 and 2007, about 66% of foodborne disease outbreaks reported were associated with restaurants. 

How Does a Safe Workplace Benefit Your Restaurant?

Creating a safe restaurant protects and benefits everyone - your restaurant, employees, customers, and the community.

Here are a few of the benefits to your restaurant:

• Improves your bottom line. Experts report that safety and health management systems reduce injury and illness costs by 20-40%, and employers can save $4-6 for every dollar they spend on safety and health programs. Plus, of course, fewer claims mean lower WC premiums.
• Increases productivity. Fewer injuries lead to lower absenteeism and turnover and higher employee morale.
• Saves time. It takes time to repair or replace damaged equipment, hire and train new employees, etc. 

Employees also benefit from a safe workplace with less pain and suffering, less stress, and better quality of life for themselves and their families. Finally, safe workplaces benefit your community by creating attractive employment opportunities and restaurants people want to frequent. 

How to Create a Safer Restaurant

There are plenty of things you can do to create a safer restaurant, and American Insuring Group is here to help! Here are ten blogs devoted to restaurant safety. Check out these and more blogs about safety and Restaurant Insurance.

1. 8 Restaurant Safety Tips to Lower Insurance Costs
   
   
2. How to Prevent Fires in Restaurants
   
   
3. A Clean Kitchen Can Reduce Restaurant Insurance Costs
   
   
4. 5 Tips to Minimize the Hazards of Commercial Deep Fryers
   
   
5. 6 Knife Safety Tips for Restaurant Owners
   
   
6. Minimize Food Delivery Risks for Lower Restaurant Insurance Costs
   
   
7. PPE to Lower Insurance and Other Operating Costs in Restaurants
   
   
8. 3 Food Safety Tips to Reduce Risk and Insurance Costs
   
   
9. Slip-Resistant Shoes Help Lower Restaurant Insurance Costs
   
   
10. Food Allergies and Restaurant Liability Insurance

The Fastest Way to Lower Your Restaurant Insurance Costs

Call American Insuring Group at (800) 947-1270 or (610) 775-3848, or connect with us online to discover how our independent agents can help you lower your Restaurant Insurance costs. They compare costs among many competing providers to help you get quality coverage at the best price. Call today.

Savvy restaurant owners purchase Restaurant Insurance to help protect their business, but insurance policies and claims can be complicated. The experienced agents at American Insuring Group can help you navigate your insurance options, policies, and claims.

However, it’s helpful to understand and avoid the most common errors restaurant owners make when filing an insurance claim:

Not Understanding Your Policy

Your insurance policy states explicitly what “perils” it does and does not cover. It can be extremely frustrating to discover something you thought was covered isn’t when you go to make a claim (not to mention the time wasted making a claim while also trying to recover from the incident).

Therefore, you need to read and understand what your policy does and does not cover, so you can either fill the gap or have a plan in place if an uncovered event occurs. Ask your insurance agent to clarify anything you’re unsure of. 

You should also know your policy’s deductible – the amount you must pay before insurance kicks in on a claim. If you decide to increase your deductible to lower your premiums, make sure you have enough available cash to cover that deductible if you need to make a claim. 

Finally, it’s crucial to understand if your policy values damaged property according to an actual cash value (factors in depreciation and normal wear and tear) or the replacement value (does not factor in depreciation and normal wear and tear). If the damaged property is valued according to actual cash value, you need to be prepared to pay the difference out of pocket. 

Not Filing a Claim Promptly

If someone is injured in your restaurant or your oven is damaged by fire, call your insurance company immediately. Waiting to file the claim can make the process more difficult or even lead to having the claim denied. A good rule of thumb is to file a claim within the first 48 hours of an incident, but the sooner, the better.

Not Working with Insurer

Don’t think of your insurance adjuster as the enemy. Be professional, polite, and cooperative, and promptly provide whatever documentation they request. Failure to cooperate may provide grounds to deny a claim. However, don’t be afraid to ask questions or even appeal an estimate if you have reasonable proof that the lost property is undervalued. 

Not Documenting Damage and Claim

You will need proof of damage to receive a payout, so immediately record the time and date of the incident and take photos and/or videos of the damage. Also, document your communication with your insurer – keep a record of mailed correspondence and emails along with the time, date, and substance of verbal communications. 

Disposing of Damaged Items

You may think photos will be enough when filing a claim, but you should also keep the damaged property as physical evidence until the claim is closed. 

Admitting Fault

Never admit fault if someone is injured in your restaurant. There are too many frivolous lawsuits, and you may not honestly know the cause of an incident until it is investigated. In addition, accepting responsibility will make it difficult for your insurer to defend you if there is a lawsuit. Plus, some policies don’t allow you to assume fault without the insurer’s consent. With these policies, admitting fault can lead to a breach of contract, denial of a claim, or termination of coverage.

 Paying Claims Out of Pocket

You may be tempted to pay the medical costs of someone injured in your restaurant. However, your insurance policy will not reimburse you for payments made out of pocket and could even result in a denied claim. 

Want to Save on Restaurant Insurance Costs?

Work with one of the experienced independent agents at American Insuring Group. We can answer any of your questions, and – as independent agents – we compare pricing and coverage with multiple insurance companies to make sure that you pay the lowest premium for your insurance coverage!

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Insurance – including Restaurant Insurance - is all about risk. The higher the risk of a claim, the higher the cost of the insurance.

The same is true of auto insurance, and let’s face it, driving can be risky. According to the National Highway Traffic Safety Administration (NHTSA), in 2020, there were 5.24 million police-reported crashes in the U.S., which caused 2.28 million injuries and 38,824 fatalities (a 6.8% increase over 2019).

 A vehicle used for commercial purposes is considered a higher risk because it may be driven more often or by more than one driver. Therefore, if you own a vehicle used for commercial purposes – making deliveries, visiting customers, etc. – your personal auto insurance may not cover damages caused when you or an employee uses your vehicle for commercial purposes. 

3 Auto Insurance Options

Personal Auto Insurance

A personal auto insurance policy covers property damage, bodily injuries, and legal expenses. While some personal auto insurance policies include limited coverage for business use, this type of policy is typically limited to accidents that occur during personal use, such as commuting to and from work and other travel unrelated to your job/business. In addition, a personal auto insurance policy typically insures the owner and one or two immediate family members only. 

Commercial Auto Insurance

A commercial auto insurance policy covers vehicles owned by a business. It covers vehicles used to drive customers or employees, perform a service you’ve been paid for, transport goods, and other business uses. Like personal auto insurance, Commercial Auto Insurance covers property damage, bodily injuries, and legal expenses. It also typically includes additional insureds, such as employees, and covers different types of vehicles, larger claims, and more complicated legal issues.

 Hired and non-owned auto insurance (HNOA)

HNOA insurance provides coverage for vehicles your business does NOT own but uses for commercial purposes, such as running business errands, picking up supplies, and visiting customers. This includes your employees’ vehicles used for business purposes and vehicles you rent or lease to use for business purposes. HNOA insurance can be purchased as a rider to your general liability insurance or as a standalone policy. It’s important to note that HNOA does NOT cover damage to your own property – only third-party liability costs.

 How to Lower the Risk of an Accident

Studies show that 98% of auto accidents are caused by human error. The following are the top six human driver errors:

1. Failure to wear a seatbelt
2. Excessive speeding
3. Distraction/in attentiveness
4. Incorrect assumptions about other drivers
5. Tailgating/not leaving enough space between vehicles
6. Not checking traffic before pulling out or crossing lanes 

The fewer accidents you or your employees are involved in, the fewer insurance claims and the lower your auto insurance costs. Here are five steps to minimize the risk of an auto accident:

1. Check employee driving records before allowing them to drive a vehicle for business purposes
2. Provide safe driving training
3. Research vehicle safety records before purchasing, renting or leasing a vehicle
4. Create and enforce a policy for employee cell phone use while driving
5. Download the National Safety Council’s FREE online Safe Driving Kit

How to Lower Your Auto Insurance Cost

The best way to lower the cost of your insurance is to work with one of the experienced agents at American Insuring Group.

We will help determine the best type of insurance for your needs and then – as independent agents – check with multiple insurance companies to ensure that you pay the lowest premium for that insurance.

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Restaurant Insurance helps protect your business from accidents, lawsuits, data breaches, and more. However, one lawsuit or severe accident can go far beyond financial losses. They can tarnish your restaurant's reputation, cause stress and sleepless nights, interrupt business, lower employee morale, and so much more. 

So, wouldn't it be better to eliminate those accidents, lawsuits, and data breaches before they occur? While it's impossible to eliminate all risks (which is why the right insurance is crucial to any restaurant's success), you can significantly minimize many risks with these tips. 

Train Your Employees

We all know the high turnover rate restaurants experience, so it's no surprise that many restaurant staff are undertrained. However, undertrained employees can lead to accidents, lawsuits, and even higher turnover.

 "One of the primary reasons restaurant employees look for new jobs is that they want more mentorship and training (in the case of younger workers) to help them take their careers in hospitality to the next level," US Foods reports. "Handing a new staff member your employee handbook and expecting them to master a role isn't enough. Empowering your employees to feel like they have the necessary knowledge and training to be good at their job will make a world of difference for your restaurant."

Ongoing training should include safety procedures that cover recognizing and avoiding common restaurant injuries - such as lacerations, slips and falls, burns, sprains, etc. – to help lower Workers' Comp Insurance. Training should also include good customer service, food allergies, etc., to help lower Liability Insurance. And finally, employees should be trained on topics such as theft and fire to help lower Property Insurance.

When all else fails, Workers' Compensation, Liquor Liability, General Liability, and other types of insurance act as a safety net. 

Maintain Facility and Equipment

QSR magazine points out, "The foundations of delivering outstanding customer service start with a well-maintained kitchen." A well-maintained kitchen requires routine maintenance and regular cleaning. 

Routine maintenance helps keep your equipment running better and helps minimize the risk of injuries caused by an equipment malfunction. In addition, maintaining your equipment helps reduce the risk of breakdowns, which can cause business interruption, food spoilage, fires, and accidents. Click here for a restaurant equipment maintenance checklist. 

Keeping your restaurant clean helps prevent fires, accidents, and food cross-contamination. Keeping your restaurant clutter-free also helps reduce accidents. 

Utilize Technology

Many small to medium-sized business owners – including restaurant owners - believe they are immune to data breaches, but the reverse is true. "63% of SMBs report experiencing a data breach in the previous 12 months," according to Hashedout, yet 43% lack any cybersecurity defense plan. Technology, such as anti-virus software, password protection, properly securing WiFi networks, etc., has made it possible to minimize those risks. 

Another risk that can be mitigated with technology is theft. There are 2.5 million burglaries annually in the U.S., and 34% of the burglaries that happen each year affect small businesses. In addition, one survey found that "internal employee theft is responsible for 75% of inventory shortages and about 4% of restaurant sales. That totals between $3 and $6 billion annually." 

Security cameras and alarm systems can help deter criminal activity, such as theft and vandalism. Check out "Five Ways Restaurants Use Technology to Secure Their Business." 

Property and cyber insurance help soften the financial blow when these precautions don't work. 

Start Saving Today on Restaurant Insurance!

Get the lowest rate on restaurant insurance and all of your insurance needs by working with the highly qualified independent agents at American Insuring Group. We research and compare the cost of your coverage with multiple insurance companies to make sure you pay the lowest premium possible for the quality coverage you need.

→ Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

The right Restaurant Insurance helps protect your restaurant from losses, such as injuries, property damage, and lawsuits. For example, if your delivery van is involved in an accident, commercial auto insurance covers the cost of legal bills, medical expenses, and property damage up to your policy's limit. Another example is if a customer falls and injures themselves while in your restaurant, general liability insurance helps pay for medical expenses up to your policy's limit. 

One key phrase in those examples is "up to your policy's limit." 

What are Policy Limits?

A policy limit caps how much an insurance company will pay when you file a claim. The amount of that cap is determined when you purchase your policy. 

With general liability, professional liability, and errors and omissions insurance, there are two types of policy limits:

• Per-occurrence limits determine the maximum amount a policy will pay for one particular incident.
• Aggregate limits determine the maximum amount a policy will pay for all claims within a policy period.

 Unfortunately, we live in a litigious society, and one significant lawsuit settlement that is higher than your policy's limit could put you out of business. Typically, you do have an option to increase your limits on each policy, but that can become costly, which is where commercial umbrella insurance helps.

 What is Commercial Umbrella Insurance?

Commercial Umbrella Insurance offers additional coverage on liability claims on your existing insurance policies. If a claim is higher than your policy's limit, it provides a buffer or safety net. 

For example, let's say a customer slips and falls in your restaurant, hits their head, and experiences a debilitating injury. They sue your restaurant for medical expenses, lost income, and other costs, and you agree to a $2.5 million settlement. If your general liability policy limit is $2 million, you will be responsible for paying the difference. In this example, $500,000. Would that have a negative effect on your finances? Could your restaurant survive this type of lawsuit? 

Commercial Umbrella Insurance does not provide primary liability coverage. It only goes into effect when a claim exceeds the policy's limits. 

Who Should Purchase Commercial Umbrella Insurance?

Small to medium-sized business owners often don't think they will be involved in a lawsuit. However, according to a United States Small Business Administration (SBA) study, 36 to 53% of small businesses are involved in litigation every year. Furthermore, "Owners mentioned that the payment of damages nearly put them out of business, which affected them for a long period of time as they worked to rebuild the business and recoup their losses."

 A Forbes article offering litigation prevention and mitigation tips states: "On Insurance. Get it! … If something does go wrong, your insurance may be able to limit your exposure and risk." 

To determine if you should purchase Commercial Umbrella Insurance, ask yourself these questions:

• Is there a chance that I can get sued?
• Do I have enough funds to cover a lawsuit if it exceeds my insurance limits?
• Do I want to pay less for higher coverage amounts (instead of increasing individual policy limits)?

How to Get the Best Rate on Commercial Umbrella Insurance?

If you need more help determining if Umbrella Insurance is right for your restaurant and ensuring that you get the best rate on all of your insurance needs, give the independent agents at American Insuring Group a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.