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The rules and restrictions put in place by Gov. Tom Wolf, during the COVID-19 pandemic, forced many restaurants to get a little creative. At first, only take-out and curbside pickup were allowed, and then in early June, restaurants were given the okay for outdoor seating.

Many restaurants that hadn't offered outside seating before the pandemic, quickly adapted. And even as we moved into the green phase and some of the restrictions on indoor dining were lifted, many diners continued to feel safer eating outside.

Even without the fear of COVID-19, many people enjoy outdoor dining. Still, restaurants need to remember that outdoor dining presents a few challenges, including risks that could affect the cost of Restaurant Insurance.

Here are tips to ensure the safety of your customers and staff:

Food Safety

Food safety should always be a priority for restaurants, but as the temperatures rise, it becomes even more crucial. According to the US Department of Agriculture Food Safety and Inspection Service (USDA FSIS), there is a "Danger Zone" – temperatures 40 to 140 degrees F - where bacteria can grow more rapidly. 

If you are in the "danger zone" (which will often occur with outdoor dining in the summer), don't leave food out of the refrigerator for more than two hours, and if temperatures are above 90 degrees, that time goes down to one hour. Cold foods should be kept at 40 degrees F, or colder and hot foods should be kept at an internal temp of 40 degrees F or higher.

Weather

Bad weather can be just a nuisance or an actual danger to outdoor diners and restaurant staff.

Restaurant managers can keep an eye on the weather and be more prepared for bad weather by uploading a weather app to their phone.

A roof, partial enclosure, or even table umbrellas can help keep diners dry and protected from the hot sun.  Other ways to keep diners cool are fans or mist sprayers. Also, make sure your staff provides cold water to customers on particularly hot days.

As the weather begins to cool, you can extend your outdoor dining time with patio heaters to keep diners warm on chilly fall evenings.

Bugs

Bugs are just a part of summer living, but that doesn't make them any more tolerable when your customers are trying to enjoy their meals al fresco! Consider adding mosquito-repelling plants (such as lemongrass or scented geraniums) or a commercial bug zapper or bug light. Do NOT spray insect repellent around food or customers.

Smoking

According to the PA Department of Health, smoking is not banned for "structures such as a deck or patio that is not enclosed by walls and a ceiling." You should still have a policy in place, especially if you decide to extend the ban to outdoor spaces at your restaurant.

Pets

Americans are obsessed with their pets, and many would love to bring their dogs along with them when they eat outside. While many states (17, according to Michigan State University's Animal Legal and Historical Center) are beginning to allow pets into outdoor areas of restaurants, Pennsylvania is currently not one of them – unless it is a service animal protected under the American with Disabilities Act. The reasons for this restriction given by many experts are health (diseases and parasites), safety (biting), and aesthetics (barking).

Lower Your Restaurant Insurance Costs

Keeping diners and staff safe helps keep the costs of Restaurant Insurance in check. Another way to keep those costs down is to work with an independent agent (like those at American Insuring Group) who can compare the cost of your insurance with several carriers to ensure you get the best price. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Third-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.

As a restaurant owner, your number one priority should be ensuring the safety of the food you serve. Beyond the human element of food safety, foodborne illness can result in negative publicity, huge fines, possible jail time, lawsuits, and higher Restaurant Insurance costs.

In 2016, there were 5,353 cases of food borne illnesses in the U.S. attributed to sit-down dining establishments, 4,139 to fast food restaurants, and 3,116 to catering or banquet facilities.

September is National Food Safety Education Month making it the perfect time to focus on food safety in your restaurant. 

What is a Food borne Illness?

The FDA defines food borne illness as “a common, costly, sometimes life-threatening – yet largely preventable – public health problem.” The two most common food borne pathogens that cause food borne illness are bacteria (Salmonella, Listeria, E. coli) and viruses (norovirus or hepatitis A).

Anyone can get a food borne illness, but pregnant women, young children, and older people have weaker immune systems, which means they are at a higher risk.

Symptoms can range from mild discomfort to life-threatening illness. The most common symptoms are diarrhea and vomiting. Other symptoms can include abdominal cramps, nausea, fever, aches, and fatigue.

Tips to Prevent Food Borne Illness

Pay attention to these three areas - Cleanliness, keeping certain foods separated, and cooking and storage temperatures – to prevent food borne illness:

Cleanliness

Eliminate illness-causing germs by keeping everything in your kitchen clean. That includes food, utensils, cutting boards, work surfaces, and your hands.

• Wash fruits and vegetables, poultry, eggs, or bagged produce marked “pre-washed.” Cut out damaged or bruised areas on fruits and vegetables and rinse under running water (without bleach, soap, or commercial produce washes). Scrub firm produce with a clean produce brush fruit and vegetables with a paper towel or clean cloth.
• Wash all utensils, cutting boards and surfaces after each use with hot, soapy water, and frequently wash dishcloths in the hot cycle of your washing machine.
• Wash your hands frequently including before, during, and after preparing food, after using the bathroom, and after handling garbage. Use plain soap and water to wash your hands thoroughly, including the backs of your hands, under nails, between fingers, etc. Then rinse and dry with a clean towel.

Keep Certain Foods Separated

Keep raw meat, poultry, seafood, and eggs separate from other foods while storing and during preparation. Use different plates, utensils, and cutting boards for cooked and raw foods. Use one cutting board for raw meat, poultry, and seafood and another for produce and other foods that won’t be cooked before consumption.

Pay Attention to Storage and Cooking Temperatures

Bacteria that can cause food illness multiply the quickest between 40°F and 140°F, so keep your refrigerator at to 40°F or below and your freezer to 0°F or below. Put perishable food in the fridge within two hours. Foods exposed to temperatures above 90°F should be refrigerated within one hour. Thaw or marinate foods in the refrigerator, not on the counter.

Using a food thermometer, cook food to the right internal temperature.

Pay attention to these three areas, and make sure that your staff is adequately trained on food safety to avoid food borne illness. Your customers and your bank account will thank you.

Want to Save More on Restaurant Insurance?

Another way to save on restaurant insurance is to work with an independent agent like the experienced agents at the American Insuring Group who can compare your restaurant insurance costs with several companies to ensure that you get the best price on your Restaurant Insurance. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

There is no denying that we live in a litigious society, and restaurants are not immune to lawsuits. In fact, the very nature of the business often makes them more vulnerable to lawsuits. Don’t believe us?

The 1993 case of a woman suing McDonald’s (and winning $2.86 million) after spilling hot coffee on herself is still fresh in many business owners’ minds. But it doesn’t end there. Check out Eater’s article “The Five Pettiest Lawsuits Against Fast-Food Chains” where you’ll read about Starbucks getting sued for putting ice in iced drinks and Subway being sued for 11-inch sandwiches.

That’s not to say there aren’t genuinely legitimate lawsuits. Someone slips and falls on a spill that wasn’t cleaned up, or someone gets food poisoning from food that was improperly prepared at a restaurant.

The bottom line is that every restaurant is at risk of being sued. Which is why restaurant owners must take steps to 1) prevent those lawsuits and 2) protect themselves with the right Restaurant Liability Insurance in the event of a lawsuit.

How to Prevent Lawsuits

You may not be able to prevent every lawsuit – freak accidents do happen – but there is a lot you can do to prevent most of them. Here are six tips:

1. Train your employees well including safety and customer service
2. Create a culture of safety
3. Maintain consistent processes and quality in your food prep
4. Treat all employees with respect
5. Hire a good attorney
6. Insure your business properly

Liability Insurance to Protect Your Restaurant

General Liability Insurance

This type of insurance, required by most landlords and lenders, covers you when a customer is injured at your restaurant, when there is damage to a customer’s property, or if there are advertising issues such as slander, libel, and copyright infringement.

When a customer is injured – such as slipping, falling, and breaking a leg on your property - general liability insurance covers legal fees, medical expenses, and any judgments imposed against your restaurant. It does not protect your employees; that’s where Workers’ Comp Insurance comes in (see below).

When a customer’s property is damaged – such as a server spilling coffee on a customer’s laptop – general liability helps pay for legal fees, replacement costs, and out-of-court settlements.

When you cause an advertising injury, general liability insurance covers copyright infringement and defamation - both libel(written) and slander(spoken).

Liquor Liability

Serving alcohol increases a restaurants liability issues, and most General Liability Insurance Policies do not cover it, so if you sell alcohol at your establishment, you need to have Liquor Liability Insurance. Pennsylvania is one of 43 states with some type of dram shop law.

According to the Pennsylvania Liquor Control Board, “Generally, dram shop laws establish the liability of establishments arising out of the sale of alcohol to visibly intoxicated persons or minors who subsequently cause death or injury to third parties (those not having a relationship to the bar) as a result of alcohol-related car crashes and other accidents.”

In other words, if you serve alcohol to someone who then injures someone else or damages someone’s property, you could be held liable. Liquor Liability Insurance helps protect your restaurant from this type of liability.

Product Liability Insurance

Food poisoning is every restaurant owner’s worse nightmare. The fact is that you can train your staff how to handle food safely and have proper processes in place to avoid food contamination, but you can’t control how the food is handled before it arrives at your restaurant. Therefore, food poisoning can still occur, and customers can still sue you for it. Product Liability Insurance helps protect your restaurant from those lawsuits.

Workers’ Compensation Insurance

Workers’ Comp is required for most businesses in Pennsylvania that have employees. It covers medical expenses, lost wages, and disability or death benefits for an employee who is injured on the job. But did you know that WC also covers legal costs if the injured employee sues you over the injury?

When reviewing your insurance needs, make sure your restaurant is protected from all potential risk – including liability.

How to Get the Best Price on Restaurant Liability Insurance

The independent agents at American Insuring Group understand the specific needs of restaurants. We will compare the cost of your coverage with several competing 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.

Restaurant Insurance is available to protect your property, your employees, and your business. Some types of insurance are pretty standard and may even be required by law or by other entities such as lenders and landlords.

The following are standard types of insurance that most restaurant owners carry:

• Property Insurance

covers your building and its contents if it is damaged by fire, storms, theft, etc. and is usually required by lenders.

• Commercial general liability insurance

covers legal costs and any judgments you may be required to pay a plaintiff if you are found liable for bodily injury or damage to someone else’s property.

• Workers’ compensation insurance

covers injury to employees and is required by law for most businesses with employees.

These insurances are great for protecting many of your assets; however, you may find that there are gaps in your coverage.  Fortunately, there are other types of insurance or additional coverages available that can help fill those gaps.

You may not need any of these additional coverages, but knowledge is power. If you want to avoid unpleasant surprises down the road, it is critical that you consider potential risks, determine if they are covered under your existing policies, and decide how (or if) you need additional coverage.  

An experienced agent who specializes in restaurant insurance – like those at American Insuring Group - can help you determine the best coverage for your specific needs.

Here are Additional Coverages You May Want to Consider for Your Restaurant

Liquor Liability

If you have a liquor license, you should have liquor liability insurance to protect your restaurant if a customer becomes intoxicated and causes injury or damage.

Commercial Automobile Insurance

If you use a vehicle to transport food or people, you will need commercial automobile insurance.

Employment Practices Liability

If an employee sues your restaurant for discrimination or harassment, it may not be covered by general liability insurance.

Life Insurance

If your death (and loss of income) would cause a financial hardship for your family, you should consider either term or permanent life insurance.

Commercial Umbrella Insurance

Umbrella Insurance provides coverage above the limits of your general liability, commercial auto, or employer’s liability on a WC policy.

Sewer Backup

Sometimes a sewer backup isn’t just a stinky nuisance; it can cause real damage to your restaurant and is typically not covered under property insurance.

Utility Interruption Coverage

The loss of utilities such as electric, gas, water, etc. could shut down your restaurant or even cause damage to your restaurant.

Equipment Breakdown

Restaurants rely on their equipment – ovens, freezers, food warmers, etc. - and equipment does break down and can cause damage.

Spoilage or Food Contamination Insurance

An interruption in utilities or an equipment breakdown could result in costly food spoilage.

Extra Expense

If your property is damaged, and you want to continue operating at another location while repairs are being made, you’re going to incur expenses such as equipment or property rentals. If you want those expenses covered, you’ll probably need to purchase extra expense coverage.

Fine Arts

If you have expensive paintings or other artwork in your restaurant, you may need to protect your investment from damage or theft with fine arts coverage.

Employee Theft

A typical property insurance policy does not cover theft by employees.

Peak Season

If your restaurant sees a high level of business during certain times of the year, you may want a higher limit for personal property insurance coverage during that time.

Specific Peril Insurance

If your liability policy doesn’t cover damage from natural disasters (some do, and some don’t), you may need specific peril insurance.

Business Interruption Insurance

If your restaurant sustains damage and you need to close for an extended period, business interruption insurance can cover your loss of income while repairs are made.

You don’t want to pay more for insurance than is necessary, but at the same time, you do want to make sure that your business assets are adequately covered. This is where an independent agent who specializes in restaurant insurance can help.

Need Help Ensuring That Your Restaurant’s Assets are Properly Covered?

The independent agents at American Insuring Group can help you determine the best coverage for your restaurant. They check and compare coverage from multiple insurance companies to make sure you’re getting the best price on quality coverage. Give us a call at (800) 947-1270 or (610) 775-3848 or find us online.

Are food allergies affecting the cost of your restaurant liability insurance? Maybe. 

If it seems as if more people suffer from food allergies, it’s because they are. According to Food Allergy Research & Education (FARE), food allergies in children increased by 50 percent between 1997 and 2011, and the number of children hospitalized due to food allergies tripled between the late 1990s and the mid-2000s. 

In the U.S., about 15 million people have food allergies, and food allergic reactions are responsible for approximately 30,000 emergency room visits and 150-200 deaths every year, according to the Environmental Health Specialists Network (EHS-Net). Over a thirteen-year period, nearly half of all fatal food allergy reactions were caused by food from restaurants or other food establishments. 

What if one of those reactions was a result of something that person ate at your restaurant? Are you liable? Again, maybe! 

So far, five states have enacted laws to make it safer for individuals with food allergies to eat at restaurants. While Pennsylvania is not one of those states, that doesn’t mean that you couldn’t find yourself on the wrong end of a lawsuit, which could affect not only your restaurant's liability insurance rates but also your restaurant’s reputation. 

What is a Food Allergy?

The Mayo Clinic defines a food allergy as “an immune system reaction that occurs soon after eating a certain food. Even a tiny amount of the allergy-causing food can trigger signs and symptoms such as digestive problems, hives, or swollen airways. In some people, a food allergy can cause severe symptoms or even a life-threatening reaction known as anaphylaxis.”

Symptoms can begin within a few minutes or up to two hours and can include one or more of the following:

• Hives
• Flushed skin or rash
• Tingling or itchy sensation in the mouth
• Face, tongue, or lip swelling
• Vomiting and/or diarrhea
• Abdominal cramps
• Coughing or wheezing
• Dizziness and/or lightheadedness
• Swelling of the throat and vocal cords
• Difficulty breathing
• Loss of consciousness

According to the Food and Drug Administration (FDA), there are more than 160 foods that can cause an allergic reaction, but eight foods account for 90 percent of all food allergy reactions. Those eight major food allergens include the following:

1. Milk
2. Eggs
3. Fish (e.g., bass, flounder, cod)
4. Crustacean shellfish (e.g., crab, lobster, shrimp)
5. Tree nuts (e.g., almonds, walnuts, pecans)
6. Peanuts
7. Wheat
8. Soybeans

What do Restaurant Employees Know About Food Allergies?

A study conducted by the EHS-Net discovered that while most restaurant managers, workers, and servers were familiar with food allergies, there were significant gaps in that knowledge. This isn’t surprising since less than fifty percent of those interviewed had received food allergy training.

For the most part, restaurant employees could recognize the symptoms of an allergic reaction and knew to call 911 if a reaction occurred. 

However, one in ten were under the false assumption that someone with a food allergy could eat a small amount of an allergen without experiencing any adverse effects. The study also concluded that while most restaurants make ingredient lists available, many of them did not take other steps – such as avoiding cross food contamination – to reduce the risk of allergic reactions. 

What Your Restaurant Can Do to Ensure the Safety of Customers With Food Allergies

The EHS-Net recommends that restaurants do the following:

• Train staff on food allergies including identifying major food allergens, how to prevent cross-contamination of allergens, and what to do if a customer has an allergic reaction
• Have a designated person on duty at all times to handle food allergy questions and requests
• Keep ingredient lists or recipes for menu items available for customers
• Use dedicated areas and equipment to prep and cook meals for customers with food allergies
• If this isn’t possible, clean prep areas and equipment before preparing meals for customers with food allergies 

If taking a few steps can help ensure the safety of your customers and help minimize the possibility of a lawsuit and the adverse effects that go with it, isn’t it worth the effort? Lowering your restaurant liability insurance is just icing on the cake.

We Specialize in Restaurant Insurance

If you want to save even more on your restaurant insurance, give one of the agents at American Insuring Group who specialize in restaurant insurance a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

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

No 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.