Restaurant owners, caterers, and other food industry professionals encounter a unique set of risks in their day-to-day operations. The perils they face can arise from the equipment in their kitchens, the customers at their tables, or even the hackers infiltrating their point-of-sale systems. Plus, these vulnerabilities can vary drastically depending on your client's profession. For example, a food truck owner also has to contend with the threat of auto accidents. That's why it's essential to get familiar with the risks your food services clients may face. Understanding their exposures can help ensure you connect them with adequate coverage.
Whether they own a food truck, banquet hall, or bar, your clients in the food services business will need guidance in selecting the appropriate policies. Here are some coverages your client should consider:
General Liability Insurance
If a customer slips on a spot of spilled coffee in your client's restaurant, your client could be sued for the subsequent medical expenses. General Liability Insurance protects your clients against lawsuits over bodily injuries on their premises or damages they cause to someone else's property. It can cover legal defense fees and settlements or judgments.
Food services professionals rely on their commercial space, equipment, inventory, fixtures, and furnishings to run their business. Property Insurance shields these business assets against loss or damage caused by fire, windstorms, theft, and certain other events. It compensates your client for the cost of repairing or replacing their insured property. This policy can also be tailored to your client's unique needs. Popular riders include Food Spoilage coverage for restaurant owners (which covers the cost of replacing perishable items lost in a power outage) and Off-Premises coverage for caterers (which protects gear in transit).
Liquor Liability Insurance
If your client's business serves alcohol, they need protection from lawsuits arising from alcohol-related accidents and injuries. Liquor Liability Insurance covers legal defense fees and settlements or judgments when your client is sued for overserving a patron who harms someone else.
Cyber Liability Insurance
Most food services businesses use a point-of-sale system, which makes your clients vulnerable to data breaches. Not to mention, restaurants are the single most targeted industry for cyber attacks. Cyber Liability Insurance helps your clients minimize the impact of data breaches by covering the cost of notifying patrons and implementing credit-monitoring services after an attack.
Hired and Non-Owned Auto Insurance
If your client ever rents vehicles for their business or requires employees to drive their personal vehicles for work errands, they may need Hired and Non-Owned Auto Insurance. This coverage steps in when your client's business is sued for an accident that happened in a non-owned vehicle during a business errand. The policy only covers liability costs (i.e., legal defense fees, settlements, or judgments) - not physical damages.
Workers' Compensation Insurance
Workers' Comp Insurance is a state-regulated coverage - one that most employers are required to carry, regardless of how few employees they have. Your clients' coverage needs will vary depending on where they live. This policy kicks in when your clients' employees are injured on the job. It can cover their medical expenses, disability wages, and more.