How to Avoid Common Restaurant Business Insurance Claims

The restaurant business faces unique risks and challenges, including food contamination causing illnesses to customers, injuries and violence from fights among patrons, slips and fall incidents due to food spills, etc. All these can lead to liability claims, demanding costly settlements. However, being aware of the common restaurant business insurance claims and how to avoid them can help save your restaurant from such unfortunate incidents and related losses.

Here are the common restaurant insurance claims and tips for avoiding them:

Property Damage Claim

Open flames, faulty wiring, improperly stored materials, and grease build-up can damage your kitchen property, including utensils and electronic appliances.

To avoid property damage:

  • Train your cooks and other employees to prevent deep fryer and oven fires and to switch off equipment during a fire incident, safely.
  • Don’t leave stoves unattended; keep flammable materials away from the stove and open flames.
  • Regularly clean your kitchen equipment (including fryers, ovens, and flat grills) to prevent grease accumulation.
  • Install a fire alarm, so everyone knows about the incident and responds quickly to prevent extensive damage.
  • Install fire extinguishers and teach your employees on using them.
  • Check your electrical wires at regular intervals and replace them as required.
  • Have an evacuation plan and mark all exits and emergency exits to help customers and employees move out safely when there is a fire.

Workplace Injury Claim

Cuts, sprains, and strains, and burns are common injuries in restaurants. With hot foods, hot oil, and knives around, it is easy for employees and customers to get injured.

You can avoid workplace injuries by:

  • Providing employees with safety equipment.
  • Have your suppliers wear gloves before taking up the hot plates.
  • Warning customers if the plate is too hot to touch.
  • Instruct suppliers not to carry too much at a time to prevent spills.
  • Training employees on using kitchen equipment.
  • Teaching employees how to lift heavy-weight objects to prevent sprains/strains properly.

Mechanical Equipment Failure Claim

Refrigerators, ovens, and fryers are crucial in the restaurant. If these devices are not in good condition, you cannot cook foods and store vegetables or fruits and other ingredients. This can impact your business operations. 

However, you can prevent such equipment failures by:

  • Cleaning the equipment properly.
  • Scheduling regular maintenance to identify repairs before they aggravate.
  • Installing proper ventilation to minimize equipment overheating.

Slip and Fall Injury Claim

Food spills, uneven surfaces, and slippery materials can cause slips and falls.

To prevent such injuries:

  • Clean the spills right away.
  • Don’t clean floors when there are many people around.
  • Put a sign near the wet floor to help those who walk around be cautious.
  • Install slip-resistant flooring and mats.
  • Ask your employees wear slip-resistant shoes.
  • Keep your parking lot and walkways well-lit.

Foodborne Illnesses

Food contamination will lead to liability claims and spoil your restaurant’s reputation. Therefore, avoid food contamination by:

  • Training your employees on proper food storage and hygienic practices, such as washing their hands before and after handling food.
  • Cleaning kitchen surfaces before and after food preparation.

Protect Your Restaurant Business from Costly Liabilities with ISU Wissink

ISU Wissink Agency is committed to providing comprehensive commercial insurance coverage to restaurants across California. Whether you own a fast-food or a full-service restaurant, contact us today to get started on your customized coverage.