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Restaurant Insurance

Liability, Property, Workers’ Compensation, and Employee Practices

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Liability Insurance

• For restaurant guests

• Protects from theft

• Fire to rented property

• Poisoned guests

• Slip and falls

• Burns and cuts

• Hot spills

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Important coverages• Employee dishonesty

– This provides coverage for an employee stealing from the restaurant

– This is not covered if it is not added to the policy

• Business Income– Coverage for lost income due to a covered loss

• Hired and non-owned auto – Employee picks up some avocados and gets in an

accident– Employer could be sued for damages

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• Sewer and drain back-up– If a sink or toilet overflows, it is not covered

on a basic policy

Picture above shows a “flooded” restaurant

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Property• Tenant improvements

– Anything the employer has done to improve the restaurant– Check the lease because one may be liable for

improvements already installed– Improvements are rated at a cheaper rate because there

isn’t a theft exposure– Improvements can include almost anything bolted to the

ground or wall

• Make sure property is rated up to its full replacement cost

• Flood and Earthquake are not included and this includes a storm surge or outside waters

• Square footage vs Sales

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Workers’ Compensation• Compensate workers if hurt while working

• Mandated by California law

• Average rate right now for a restaurant (9079) is about $4 per $100 in payroll

• Managing a claim– Obtain medical care immediately– Report claims as soon as possible– Help employee get back to work– Monitor the situation

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Ahhhhhh!

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oops…that’s gonna leave a mark…

Don’t worry, no one was injured during this PowerPoint presentation

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Employee Practices Liability

• Sexual harassment– Employer to employee– Employee to patrons– Patron to employee– Patron to patron

• Discrimination

• Wrongful Termination

• Wage and overtime suits

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Thank You!Questions? Call or email me!

This presentation was for education purposes only and not meant to be a recommendation of coverage or promotion of 5th Avenue Insurance.

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