| Owning your own restaurant may be your | | | | spills need a response plan and equipment ready. Be |
| opportunity of a lifetime. A restaurant business is also | | | | sure that your employees and shift managers know |
| an intense insurance risk. A realistic plan to reduce | | | | how important it is to your guest's safety (and your |
| your risk coupled with insurance protection can help | | | | financial safety) to have any spills promptly |
| keep your dream a safe investment. | | | | cleaned-up. |
| Kitchen Fires - | | | | Food Related Lawsuits -Restaurant owners can be |
| Prevention is your best safeguard! Be sure that you | | | | sued after a customer becomes ill after eating and |
| have appropriate fire suppression systems in place | | | | contracting a food borne illness. Safe handling of food |
| and maintained. Insurance companies typically require | | | | is an important priority for any restaurant. As an |
| that your heat producing cooking equipment, | | | | example, in 2008, many patrons of a Minnesota cafe |
| particularly grease sources (fryers, grills, ranges), | | | | became ill with salmonella after eating a raw jalapeno |
| have a fire suppression system and vent hood | | | | pepper garnish. There are no short-cuts in safe food |
| overhead. Also, grease handling in the kitchen is very | | | | handling. Know your food product sources. Keep your |
| important. Grease presents a high risk of both | | | | food inventory fresh by ordering sensibly and |
| starting a fire and fuelling a fire started from another | | | | discarding any food approaching expiration. Keep your |
| source. Note: As of January 1, 2008, Texas Insurance | | | | food preparation areas clean and uncontaminated. |
| Code requires commercial cooking areas be | | | | Liquor Liability - |
| protected by a UL 300 Wet Foam system. A dry | | | | If you serve beer, wine or other liquor, be sure you |
| chemical system is now considered obsolete and will | | | | are protected from lawsuits resulting from |
| be "red tagged" by fire code inspectors. This new | | | | alcohol-related incidents. Don't risk you Liquor License |
| higher standard has evolved due to the use of new | | | | or a lawsuit by serving intoxicated or under-aged |
| hotter fryer oils in food preparation. Only a Wet | | | | patrons. Have your alcohol servers TABC (Texas |
| Foam system has the capability to cool a fire | | | | Alcohol Beverage Commission) certified and enforce |
| sufficiently to keep these cooking oils from reigniting. | | | | the TABC rules. Beer and Wine can be an important |
| Electrical Fire - | | | | profit center for your restaurant venture with |
| Second to a cooking or a grease fire, overloaded or | | | | appropriate practices. Be sure to include Liquor Liability |
| malfunctioning electrical equipment is a particular risk | | | | coverage in your insurance policy. |
| for restaurants. Austin had three restaurants burn to | | | | Property Risks - |
| the ground due to electrical malfunctions in 2006 | | | | Operating a restaurant often includes considerable |
| (Chili's on Stassney, East Austin's Berts BBQ and a | | | | equipment, building improvements and food stock. |
| Chinese Buffet). I particularly look for electrical issues | | | | Adequate property insurance protection is critical and |
| in the kitchens when I do a field inspection of a food | | | | may also be required by your lease. Visualize what it |
| service prospect. I often see jury-rigged electrical | | | | would take to restore your restaurant after a major |
| wiring, worn-out appliances and overloaded circuits. | | | | fire. Be sure to include the lease improvements to |
| There is no good reason to take these risks. | | | | restore your space, the kitchen equipment & |
| Slip & Fall Lawsuits - | | | | built-ins, tableware and food stocks. |
| While having a customer slip and fall is a risk for any | | | | Employee Injury Lawsuits - |
| business open to the public, restaurants are at | | | | A food establishment is very much a people driven |
| particular risk because of the large number of | | | | business. Your hired help is your biggest asset and |
| customer visits and the added hazard of food spills. | | | | one of your biggest lawsuit risks. Food preparation |
| General Liability Insurance protection is critical for | | | | has some inherent hazards for employee injuries. |
| your risk to the public. One of our restaurant client's | | | | Minimize the kitchen risks with appropriate training and |
| was sued after a patron tripped in a pothole in the | | | | safety appliances. Another typical injury for |
| parking lot in 2006. Walk your entire business location | | | | employees in food service establishments is slipping |
| and look for any irregular walking surface or other | | | | and falling. Worker's Compensation Insurance is critical |
| hazard in your public space that can cause a person | | | | liability protection for any employer. The added risks |
| to trip and fall. Eliminate these hazards if possible and | | | | of working in a restaurant environment increase the |
| mark potential trip hazards that can't be removed. | | | | need for this protection. Risk reduction is also an |
| Protect stairs with strong handrails. Potential food | | | | important strategy. |