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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

Do You Need Restaurant Liability Insurance Coverage?

Posted by David Ross on Thu, Dec 29, 2016

Things to consider when purchasing Restaurant Liability Insurance in Philadelphia, Reading, Lancaster, Harrisburg, York, Allentown, Erie, Pittsburgh, PA and beyond.Imagine… One of your servers loses his grip on a hot cup of coffee and it lands on a patron’s lap. Or a woman slips on a wet spot in your restroom and breaks her ankle in two places.

As a restaurant owner, you’re probably already aware how quickly an accident can happen in your establishment. So it’s incumbent upon you to be prepared for the lawsuits and expenses that often accompany these type of mishaps. Without adequate restaurant insurance protection, your business assets could be seized to pay any claims for which you’re found liable. 

Even when the court does not rule in the patron’s favor, your restaurant will still be responsible for court costs and your attorney's fees to defend the case.

 

Getting the right insurance protection

Without the proper insurance coverage, incidents like these could bankrupt, or at least derail, your small business. Liability insurance safeguards your business from claims from others, including lawsuits. This insurance starts with a General Liability (GL) policy, but there are also plans to meet a restaurant’s specific needs. These include:

  • Liquor Liability if your business serves alcohol
  • Excess Liability to increase the liability limits on your policy
  • Assault and Battery Liability if a fight breaks out and there are injuries
  • Cyber Liability to address data breaches

Who needs this insurance?

Restaurant liability insurance is appropriate for a variety of hospitality businesses including:

  • Full-service restaurants
  • Fast-food restaurants
  • Bars and taverns
  • Sports bars
  • Night clubs
  • Delis
  • Pizzerias
  • Food trucks
  • Caterers

This list is not comprehensive, but it gives you an idea of the types of establishments that incur the risks associated with serving food and drinks to customers and clients.

What does general liability insurance cover?

Liability policies will usually include the following:

  • Financial awards to the plaintiff if you lose your case
  • Attorney’s fees for defending your business in court
  • Future medical payments for an injured party
  • Settlement costs if it makes sense to settle out of court

If a patron’s injury or illness results in death, your GL policy will cover the medical expenses, funeral expenses, and any court-awarded compensation. Just remember, when your employees are injured or become sick while working for you, they are not covered under your GL but by your Worker’s Compensation insurance.

Property damage claims coverage may be included

Keep in mind that your policy may also protect your food service business from liability due to injuries or property damages that happen at other locations. Think about a business that caters an event at which a food warmer malfunctions and the resulting fire causes property damage at the venue. Your policy would handle the costs and any lawsuits.

And don’t forget personal and advertising injury claims

When your restaurant uses advertising or any promotional literature, you need to take into consideration that you may be infringing on another restaurant’s brands or copyrights. A general liability policy that covers you if you copy the promotional literature of another business would make sense. It protects you from accusations that your advertising slandered or libeled another company or person and caused non-physical damage.

 

Be Prepared - Contact Us for All Your Restaurant Insurance Needs

Contact us for Restaurant Liability InsuranceNo matter how well prepared you think you are, your food service business is not immune to accidents. A Restaurant General Liability policy is a must to protect you against the unpredictability of mishaps, oversights, and lawsuits.

When shopping for coverage, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848 for help in finding the right policy to fit your restaurant business needs.

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