Operating a restaurant involves some degree of risk. While your business insurance policy will cover losses against natural disasters and criminal activity, most owners would rather avoid these unfortunate situations in the first place. Here are some common reasons restaurant owners file insurance claims and how to prevent them.

What Are Some Common Restaurant Insurance Claims?

1. Fire

Even a small restaurant may have several ovens and stovetops, each of which is a potential fire hazard. Adding grease fryers, pressure cookers, and microwaves to the kitchen increases the risk of an accident, making fires a leading cause of business insurance claims.

While some fires may be unavoidable, keeping your equipment clean and free of grease may prevent most kitchen blazes. Training your staff on how to react if a fire breaks out can be essential for containing the damage if the unexpected occurs.

2. Auto Accidents

Delivering food directly to your customers can maximize profit. However, if one of your drivers causes an accident while making a delivery or picking up products, you may be held financially responsible for any damages.

Thoroughly screening all new drivers can minimize the risk of expensive auto accidents. You might also consider tracking all of your delivery vehicles with GPS devices that can monitor each driver’s speed and driving habits.

3. Liability Claims

If a customer is injured on your property, you may be legally liable for their medical expenses, lost wages, and other damages. The liability coverage included with your business insurance policy will cover most valid claims, but maintaining your property can reduce the risk of injuries.

Make sure the parking lot is free of debris and well-lit at night. To minimize the danger of slipping and falling, make sure your staff is trained to clean up messes as soon as they occur. Additionally, provide continuous safety training to each of your team members. Promoting safe work habits can reduce the risk of injuries that may lead to expensive workers’ comp claims.

Since 1973, Chanler Agency Inc. Insurance has provided tailored business insurance to restaurant owners throughout Geneseo and Livonia, NY. They understand that no two clients are alike, so they find coverage options designed to meet your specific needs. Whether you want to expand your coverage to protect from food delivery incidents or kitchen fires, they'll customize a policy for your establishment. Visit their website for more on their business insurance services, call (585) 243-5520 for the Geneseo office, or call (585) 346-3118 to request a quote from an agent in Livonia.