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Bar/Restaurant owners? Are you aware of these exposures?

There are a lot of factors that you consider when you are thinking of opening a new restaurant or bar. There's always the competition, staff needs, financial investment, etc. The one thing furthest from your mind? Your insurance exposures. The last thought you have is whether or not you'll be covered in the event a staff members steals from you. Right? Or maybe what happens if you have equipment breakdown? How do you maintain and still serve your patrons?



That's why you need us! Let us worry about what exposures you might have. We will go over where your risks are and how we can protect you. Here's just a small list of things to think about when it comes to Food & Beverage coverage.


Property Exposures 


Fire Risk

  • Appliances are modern and up to date

  • UL300 Compliant. This requires:

    •  Fire-extinguishing nozzles in the hood, ducts and above each cooking appliance

    • Automatic fuel shut-off capabilities for gas and electric power sources

    • Manual fuel shut off switch for all power sources

    • Requires a wet-chemical fire extinguisher (K-Type) in a commercial kitchen. These extinguishers use specific agents that separate the fuel from the oxygen and help absorb the fire triangle's heat elements (Fuel, heat, oxygen + chemical reaction)

  • Grease-soiled linen/rags should be stored in a metal container. They can combust if they are not properly stored in a metal container.

  • Be aware of NFPA 96 (National Fire Protection Association) minimum requirements for safety guidelines.


Water Damage

  • Frozen Pipes - If you happen to live in the frozen Tundra, this is a huge exposure that could lead to additional losses.

  • Check all visible plumbing for leaks and drips

  • Schedule annual plumbing inspections to catch problems before they create bigger losses

  • Water back via sewer/drain


Equipment Breakdown

  • POS systems, refrigeration, HVAC systems to all types of equipment are susceptible to power surges, short circuits and mechanical breakdown. Make sure wiring is up to code and correct amps are being used. Having some type of surge protection is highly recommended. A food spoilage for example could be detrimental to a business. Making sure you are using correct amps, etc., will go a long way to preventing a loss.


Liability Exposures


General Liability

  • Slips and falls are a huge exposure.

    • Stairs need to have proper hand rails, proper lighting and are uncluttered of debris that could cause a potential loss

    • All spills are wiped up immediately

    • Non-skid or non-slip flooring in vital areas

    • Well lit corridors and enter ways

Product Liability

  • Salmonella, E-coli and other food-borne illnesses are always a potential risk

    • Proper refrigeration

    • Food storage is critical

    • Training employees on safe food handling

    • Have quality suppliers to insure quality products

Liquor Liability

  • One of the highest potential for loss severity

  • Overserving and underage serving can result in a catastrophic loss. Especially if the patron that was served is involved in an auto accident, fight or assault

    • Anyone serving alcohol should be trained to recognize signs of intoxication

    • Have a plan in place for cutting off intoxicated people

    • Have cabs or Uber numbers on hand to offer them

Cyber Liability

  • Threat of cyber attacks and data breach is constantly increasing as we become more and more dependent on technology

  • Potential gold mine for cyber criminals because of the high volume of credit card transactions and customer information that is stored on line

  • Digital orders and payments increase the likely hood of an attack

Employment Practices

  • Employees are interacting with the public

  • Employees are at risk for harassment or discrimination claims from a patron or supplier

  • Employees are at risk of discrimination or harassment from management

Crime Liability

  • Staff handling cash and credit cards has potential to be a employee theft claim

  • Bookkeepers have access to account information and banking information

  • Exposure could lead to theft and fraud


As you can see, there are so many exposures you should be aware of when operating your business. And this list is a very small portion of what you should be aware of. Ask your agent! Make sure you are not vulnerable to any of these exposures and that you have protection in place.

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