What Risks are Restaurants Exposed to?
Restaurant owners face a significant amount of risk during their day-to-day operations. These risks are often unpredictable and unavoidable, but can have serious consequences for the business when they do occur. While every restaurant is different, there are several common risks that business owners in this sector should be aware of, for example:
- A severe storm causes damage to the exterior of a fine dining restaurant. Business Insurance may cover the costs of repair.
- A waiter at a busy restaurant spills a drink and forgets to clean it up. As a result, a customer slips on the wet floor and suffers a serious injury. Public Liability insurance may cover the subsequent costs incurred by the restaurant .
- Several customers contract severe food poisoning from raw fish served at a city restaurant, with those affected taking legal action against the company. With appropriate business insurance in place, the restaurant may be covered for legal costs and any resulting compensation payment.
- An electrical device in a restaurant’s kitchen starts a fire, which causes damage to kitchen equipment and other parts of the property. The restaurant has to repair the damages and replace certain pieces of equipment. These costs may be covered by the restaurant’s insurance.
As a small business owner, the continuing success of your business rests upon your ability to manage, mitigate and transfer risks. It is possible to reduce the risk that you are exposed to by evaluating and taking steps to minimise them, however risk cannot be totally eliminated.
It is therefore imperative to back up your prevention strategies with a comprehensive insurance policy that can fully protect your business.