Restaurateurs have taken bold steps in recent years, redefining the food service industry. Some of the innovations here in Sarasota include:
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Outdoor dining alongside or in converted roadways
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Robotic servers
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Online menus patrons access from their phones
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Kiosk ordering
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Dynamic pricing, menu pricing based on supply or seating demand
With these advancements and ongoing labor challenges, developing a solid risk management program is more critical than ever.
Given the broad scope of restaurant risks, it’s helpful to consider them by category.
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Premises Risks
Premises risks encompass standard concerns related to owning or renting property, such as storm damage and vandalism. Three specific risks are particularly acute in food service:
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Kitchen Fires and Smoke Damage: Keeping ventilation ducts clear of soot and grease is critical. If your property is damaged, commercial property insurance can assist with recovery.
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Patron Injuries from Slips and Falls: Outdoor dining adds responsibilities for managing traffic and natural hazards. Using concrete planters as vehicle barriers and trimming trees near dining areas are essential risk-reduction measures. A solid general liability policy is crucial here.
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Power Outages and Equipment Breakdown: Business interruption and equipment breakdown insurance can protect your income in cases of power outages or equipment failures. Consider adding food spoilage coverage if it’s not included in your business owner’s policy or commercial property policy.
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Food Safety Risks
Food safety risks have expanded with customers expecting detailed information about allergens like peanuts or gluten. Implementing a food allergen response plan is wise, and restaurant food contamination insurance may be necessary to mitigate liability if patrons are misinformed.
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Alcohol-Related Risks
Alcoholic beverage risks involve potential liquor-related damage or injuries. Your establishment could face lawsuits if an intoxicated patron causes harm, even after leaving the premises. Training staff to avoid over serving is also essential, and liquor liability insurance is a must-have.
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Staffing Risks
Staffing remains a significant challenge, with high turnover and employee stress leading to errors. Effective labor management and carrying employment practices liability insurance are key strategies. Workplace violence coverage and fidelity bonds should also be considered to protect against employee theft of cash or credit card information.
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Workers’ Compensation
Workers’ compensation is essential protection that covers employees for medical expenses and lost wages due to on-the-job injuries. In most states, it helps shield your business from lawsuits unless gross negligence can be proven.
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Cyber Insurance
Do you accept credit card payments or provide an online menu? If so, cyber insurance is vital. Cyber coverage offers support in the event of a breach of data, processing errors, or if an online menu system fails to disclose allergens.
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Commercial Auto and Valet Liability
Delivery and parking services? If so, commercial auto and valet liability insurance is critical. Commercial auto insurance covers the liability for harm caused by your drivers, even if they use their vehicles. No one should valet park a Bentley without adequate insurance to cover the risk.
In Sarasota, where extreme weather, outdoor dining, and seasonal tourism present unique challenges, managing restaurant risks effectively requires partnering with a trusted insurance advisor. With over 70 years of history, Atlas Insurance helps craft specific coverage solutions to help you protect your business. Whether you opt for a business owner’s policy or require a customized suite of insurance, our team is here to partner with you to ensure your dining establishment is prepared for any situation.