5 Common Restaurant Insurance Claims

5 Common Restaurant Insurance Claims

When it comes to property claims made by restaurants, it isn’t a matter of if a claim will be filed, it’s a matter of when.

Research has shown that around 40% of small business owners in America will file a claim within the first decade of operating. And restaurants make up a huge chunk of this, owing largely to a higher risk of occupational hazards and damages.

Anyone working within the restaurant industry needs to be fully aware of the most common restaurant insurance claims, so you can make sure you’re adequately protected.


1. The Most Common Restaurant Insurance Claim: Fire Damage

Perhaps unsurprisingly, one of the most common types of insurance claims relates to fire damage. Combine open flames with the intense pressure of working on a busy Friday night and you’ve got a recipe for disaster.

It is vital that all employees have comprehensive fire safety training to reduce the likelihood of accidents. In addition, all equipment should be regularly cleaned and safety checked to prevent it from burning down your restaurant when you close up for the night.


2. Staff and Patron Injuries

Other common restaurant insurance claims involve injuries to either restaurant employees or patrons.

Every accident is a potential lawsuit waiting to happen, so it is essential to be insured against these eventualities.

restaurant kitchen with staff

An accident doesn’t have to just mean a customer getting hot soup poured on their lap. It could result from someone tripping on the uneven sidewalk outside your place of business. It could also mean an employee losing a finger when operating kitchen equipment.

And the danger doesn’t stop when your customers drive away in their car. Without the right liquor liability coverage, you could be on the hook if a drunk patron crashes their car on the way home.


3. Food Spoilage

Every good restaurateur knows that spoiled and contaminated food have no place in the kitchen. But what happens if a hurricane knocks out the power to your restaurant for three days and you have to throw everything out? Or your latest delivery of ground meat is tainted with E. coli?

Food spoilage and contamination coverage can help reimburse you for the costs of replacing all that food (and cleaning all your equipment) so you can get back to business. It may even cover medical tests or vaccines for your employees.


cash register drawer with money

4. Theft

Theft is another common experience faced by restaurant owners. And it doesn’t always come in the form of an armed robbery or a dine-and-dash. A very common form of theft actually comes from employees themselves, who may steal from the cash register or skim some stock from the kitchen.

Make sure your insurance policy has specific coverage for this type of theft, as it is a lot more common than you think. In addition to this, make sure to install surveillance cameras throughout your place of business.


5. Data Breach

When you think of restaurants, most people tend to think of food, not numbers. But cyber criminals aren’t most people.

Odds are, the more business you do, the more credit card numbers you have. And—especially if you’re a small Mom-and-Pop operation—thieves and hackers are willing to bet that you don’t have high-tech security measures in place, making you the perfect target for a cyberattack.

Data breach is a lot more common than you think and remediation costs can be enough to put you out of business.


We Cover Common Restaurant Insurance Claims

An ounce of prevention is worth a pound of cure, but you can’t prevent damage and/or loss every time. Sooner or later, you’ll have to make one of these common restaurant insurance claims.

The question you have to ask yourself is, “Am I covered?”

umbrella graphic covering food

A Business Owner’s Policy is crucial for any business, but it doesn’t offer comprehensive coverage. To truly protect your business, you’ll need to have a network of policies that cover multiple risks:


Make Sure You’re Protected

At any given moment, all businesses are only one mistake away from having to close their doors for good. But with the right insurance coverage, you can be compensated for that loss so you can keep feeding customers and paying employees for a long time to come.

The right types of restaurant insurance can provide a safety net when (not if) you need to make an insurance claim. But the last thing you want is for your claim to be denied because you don’t have the proper coverage.

Because we’ve been one of Orlando’s premier insurance agencies for more than 30 years, and have written thousands of commercial policies for restaurants just like yours, we are confident that we can find a policy that fits your needs.  Call now to discuss your options or submit a free quote if you know what you need.

About the Author

Jason received a Masters of Science & Management in Risk Management & Insurance from Florida State University. He has been with Harry Levine Insurance for 9 years and handles the leadership of daily operations. He was the 2013-2014 Florida Association of Insurance Agents Young Agent Council's Agent of the Year. Currently serves on FAIA Board of Directors.

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