Common Liability Risks Associated with Opening a Restaurant

Have you always dreamed of owning your own restaurant, creating and serving delicious food to food enthusiasts from all over your city? As you work towards making that dream come true, there are probably dozens of concerns constantly crossing your mind.

By now, you have probably realized that this is a colossal task that comes with a lot of risks and unexpected expenses – as do many other businesses. The liability risks associated with opening a new restaurant can vary but one thing is for certain: you don’t want to get stuck with obstacles right when your dream is finally coming true! Insurance providers would advise you to look into specifically designed programs for your business to avoid future lawsuits and expenses.

To give you an idea of some of the most common liability risks associated with opening a new restaurant, we’ve put together a list that could help you put things in perspective.

Food Contamination and Spoilage

For a business that revolves around food, ensuring that everything you serve is fresh, safe, and fully cooked is imperative. There are many liability claim risks associated with the items your restaurant offers – undercooked meat, expired ingredients, allergic reactions, and improperly handled meals are all among some of the problems you could face.

Employee Lawsuits

Similar to other businesses that have their own set of risks when it comes to workers, restaurants can also be dangerous for employees working around hot stoves and ovens along with sharp knives and utensils. Things are always fast paced in busy restaurants and an injury is quite possible for all those running in and out of the kitchen. Having an insurance coverage to protect yourself from heavy lawsuits could come in handy in such situations.

Equipment Breakdown

For a restaurant to function smoothly, there are several appliances and equipment you will come to rely on, such as stoves, freezers, and air conditioning. If for any reason, whether electrical or mechanical, your equipment is damaged or stops working, not only will your daily operations suffer but you could also end up having to deal with some serious expenses on repairs.

Liquor Liability

If you plan to serve alcohol at your restaurant, you must consider the risk of liability claims associated with customers who can cause damage to your property, themselves, or other people around them while intoxicated. The damage or injuries could end up being a very heavy financial loss for you and it’s important to protect yourself from that.

Property Damage

Flooding, fires, gas explosions, and vandalism are all threats to your business. As a restaurant owner, you would typically make sure that everything around you is in order to keep your business safe and operational. Sometime, however, unpredictable things happen, and it is always a good idea to protect yourself and your cherished business from suffering because of events that were not in your control.

So, if you’ve decided to take that step forward towards making your dream come true and launching your own restaurant, call us at Insurance Solutions of America and talk to us about the insurance policies we offer that would suit you and protect your business from all the risks and potential lawsuits associated with it.