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Written by Adam Miller
Why Restaurants Face Higher Insurance Risks

Houston businesses need commercial insurance coverage to protect their company, business assets, and their employees. However, some companies and industries need a wider range of insurance coverage due to higher rates of incidents and claims, or greater risks involved with day-to-day operations. In today's blog post, we'll look at why the Restaurant Industry faces higher insurance risks, and how restaurants can better protect themselves from liability claims. This blog post is relevant to restaurants, cafés, and delis of all sizes, from quick-service restaurants to five-star dining rooms.

Higher Risk of Workplace Accidents

Restaurant owners face higher insurance risks because of the greater likelihood for workplace accidents. Restaurant employees can suffer from cuts, burns, slips, falls, and other injuries, which can occur in the kitchen, loading areas, or dining areas. The increased risk of employee injury and Workers Compensation claims can lead to higher insurance costs, but companies can reduce their liability by having all employees complete restaurant training courses for kitchen and workplace safety. This training should also include what to do in the event of a major accident or emergency situation, such as a kitchen fire, customer emergency, or severe weather event.

Increase of Weather-Related Revenue Losses

Fluctuating weather patterns over the last few years have lead to an increase in severe and unpredictable weather conditions, resulting in more lightning strikes, power outages, and flash floods like those that hit Houston during Memorial Day weekend. Restaurants can lose inventory, suffer structural or signage damages, or be closed for extended periods of time due to repairs and remodeling. These damages can lead to a significant loss of customers and revenue, which can be difficult for restaurants to recover, especially in Houston's competitive restaurant market. Restaurants can protect themselves with quality commercial property insurance coverage that covers damages to restaurant property, and can help offset losses and provide funds for employees when it's needed most.

Food Contamination and Sick Customers

Food contamination and food-borne illnesses are a leading cause of restaurant liability claims. Produce and meats may be contaminated with salmonella, listeria, or other diseases from the source, or may be caused by improper food storage or temperatures. In addition, a growing number of Americans suffer from food allergies or sensitivities, and any food allergen contamination can result in serious illness or even death. As a result, restaurant owners may be hit with substantial lawsuits for injuries or death. Restaurant owners and managers can reduce potential liability claims and customer injuries by ensuring all employees complete safety courses on food handling and preparation to eliminate the threat of food borne illnesses, contamination, or exposure to allergens.

Aegis works with a large number of Houston-area restaurants to ensure they have the reliable, comprehensive, and top-quality commercial insurance needed to protect their business. The friendly and experienced Commercial Insurance Team of Aegis can develop a custom commercial insurance package tailored to your specific business or industry to meet your unique business needs. Call Aegis today about our full range of commercial insurance policies, including Business Owners Policy, Commercial Property Insurance, Commercial Auto, General Liability, Workers Compensation, and Excess Liability coverage. Contact Aegis at 713-850-7622 for more information, or go online for a free quote!

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