Possible Insurances Your Business Needs if It Serves Food

Insurance is one of those fixed costs that every business needs. Your building, equipment, supplies, and property all need to be covered from damage, and you also need liability insurance and workers’ comp coverage as well. When you operate a business that serves food, there are additional riders and policies that you should consider to make sure you are fully protected. Here is a look at a few of the common ones.

Food-Related Injuries

Many food is served without any problems, but occasionally there are serious mishaps that lead to costly injuries to the consumer. Spilling hot beverages, swallowing bone fragments in meat, or choking on pieces of broken utensils can all lead to serious injuries and subsequent suits against the establishment that sold the food. This is a hazard that is unique to businesses serving food, so make sure that your policy covers it.

Inventory Spoilage

When you serve food, you deal with many thousands of dollars worth of perishable ingredients. Everything from meat to milk must be refrigerated to be safe for your customers. In the event of a power outage or equipment failure, you can find this inventory quickly rendered unusable as storage temperatures exceed safe levels. Inventory insurance can help with these losses and reduce the out-of-pocket cost of a refrigeration mishap, but you must make sure that your policy includes this specific peril to be covered.

Foodborne Illness

One of the common problems you may encounter in a food-related business is the possibility of food poisoning. This is a very specific risk that a general liability policy is unlikely to cover, so you need to understand your exposure and the importance of protecting against it. Foodborne illness can happen despite your efforts to train workers, store foods properly, and clean your facility because some food items are contaminated before they ever arrive in your kitchen. Make sure that your liability coverage specifically addresses this risk.

Losses Caused by Customers

When a customer at a business causes injuries or property damage, there may be some liability placed on the owner. A good example is a business that sells alcohol by the drink. If a patron is overserved and becomes intoxicated and then violent, those who experience injuries or property damage from the impaired individual may have a case against the owner of the business that sold the alcohol. Imagine the liability you could face if a customer leaves your bar and immediately causes death in a DUI accident. This scenario is very realistic and has played out many times, so it’s important that you implement policies for monitoring customers’ consumption and getting insurance coverage as well.

As a responsible business owner, you are already doing everything you can to avoid problems, but sometimes there are things beyond your control. Don’t let these unpredictable events endanger your livelihood. Look into insurance to cover the specialized risks associated with restaurants.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal, insurance, or financial advice. While every effort has been made to ensure the accuracy and reliability of the information, the content may not be up-to-date or applicable to specific circumstances. We recommend consulting with a licensed insurance professional or legal advisor to determine the ideal insurance coverage for your specific needs. The examples and scenarios discussed are illustrative and may not reflect the actual outcomes or coverages available in all situations. Always review your policy terms and conditions thoroughly before making decisions.

Published by: Nelly Chavez