Embroker’s Restaurant Practice

Restaurant owners are regularly exposed to unique business and personnel issues, among them onsite accidents and foodborne illness. Investing in the right risk management program can help reduce costs and improve your bottom line.

An Introduction to Insurance for Restaurants

As a restaurant operator, you know that running a restaurant — let alone a successful one — is a monumental task. To become successful, restaurateurs need to rely on key partners to help them cut costs and maximize profitability. Embroker is here to help create a smart and cost-effective insurance and risk management strategy to protect your restaurant’s future.

We wrote this guide to help you, the reader, understand both the basics of insurance for restaurants as well as some more advanced considerations. Our hope is that you walk away from this article a more empowered buyer, with a better understanding of the risk you can transfer to other parties via our restaurant insurance product.

If you’d like help, we’d invite you to talk with a broker or get started by creating an Embroker account. Our unique combination of service, technology, and expertise will help you reduce the cost of risk to improve your bottom line. Our technology digitizes all of your insurance including digital policies, certificates, claims, and insurance applications. Our empowered brokers work with that data and leading carriers to make sure you’re getting the best value on the right coverage. When you upload your policies to your Embroker account, the policies are analyzed and reviewed by our team of insurance experts – this is our Risk Review process. For more clarity on pricing, your business will be benchmarked against similar businesses to identify any unforeseen exposures and premium savings opportunities.

Why Do Restaurants Need Insurance?

Restaurant owners face a unique risk profile, and the potential for property damage and liability lawsuits resulting from everyday operations is high. Restaurants deal with open flames or red-hot surfaces on a day-to-day basis, and an untimely fire could damage expensive equipment, forcing a shutdown until the situation is resolved. With nearly 8,000 reported fires in the US each year, this is a very real risk every restaurant faces.

Additionally, both customers and employees are at risk for serious injuries in the restaurant setting.The right insurance policy can cover the injury to your employees or third parties and could even lessen the likelihood of a major lawsuit by swiftly covering the injured third party’s medical bills as well.

While most restaurants follow stringent health code requirements and do everything in their power to prevent foodborne illness, mistakes happen, and customers can often file a frivolous lawsuit for damages after claiming that a certain restaurant made them sick.

Finally, if your business sells, serves, or allows any alcoholic beverages to be consumed on your premises, your restaurant could be sued for damages that are often related to intoxication.

Whatever the reason behind them, lawsuits filed against you by employees or guests can be financially crippling to a restaurant. Managing the risk involved in your business operations and transferring that risk to your insurers is an important step in safeguarding your restaurant’s future.

Examples of Insurance at Work for Restaurants

  • B’s Cracklin’ Barbecue, an award-winning restaurant in the Riverside neighborhood of northwest Atlanta, went up in flames. It is the second time its chef has lost his restaurant to fire.
    SeePopular Atlanta Bbq Restaurant Destroyed By Fire
  • Milk and Honey, a Nashville eatery, was sued for serving salmonella-tainted short rib gnocchi to patrons in August 2018, causing over 20 patrons to fall ill.
    SeeMilk & Honey Sued Over Salmonella Outbreak
  • Three Greenville restaurants were sued in connection to a fatal DUI wreck involving a 19- year-old driver. The complaint alleged that 19-year-old was served alcohol the three restaurants, before driving on Interstate 385, where the wreck took place.
    See3 Greenville Restaurants Sued After Teen Served Alcohol
  • Dallas-based Brinker International, which operates over 1,600 Chili’s outlets worldwide, stated that it had suffered a data breach which may have exposed clients’ credit card information.
    SeeChili’s Restaurant Chain Suffers Data Breach

Restaurant Insurance Costs

As is the case with any industry, there are many different factors that need to be considered before determining how much your restaurant insurance is going to cost. Cost drivers will always be different based on the policies you choose, the unique risks your restaurant faces, the value of your equipment, the size of your establishment, your turnover rate, and other key factors.

Working with the right partner will ensure they are not only negotiating the right coverage but the best possible pricing options for your restaurant as well. Embroker believes in giving our clients better choices using data and transparency. We benchmark your policies against similar businesses in your vertical then procure quotes from multiple insurance carriers for coverage you may not carry and might want to consider purchasing. We also cross-reference your costs with restaurants of comparable size, policy limits, claims history, and risk tolerance so we know your premiums are as competitive as possible.

For more, read our full guide on restaurant insurance cost.

Getting Started

Now that you have a better understanding of insurance for restaurants, you may be wondering how all of this affects your business and where to go from here. If you need more help or information, you can reach out to our team of expert brokers. If you prefer to get started on intelligent quotes, create your Embroker account today.

Restaurants require unique insuring expertise and experience. Our restaurant practice is redefining the way insurance is purchased, combining technology with deep insurance expertise and genuine understanding and care for your business.

Embroker is the easiest way to intelligently insure any business. We’re here to help!