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With change in restaurant management so dynamic, industry experts say that now is a good time to review and even revamp restaurant insurance policies. “Along with making changes to their menu offerings and business models, many restaurateurs are also reassessing their insurance needs.” Food Delivery Issues.
These issues have translated to the industry’s insurers as well – causing even more headaches for restaurant owners. The restaurant insurance market has seen rising costs to insure and as a result, carriers have come and gone from the market. So, how can restaurant owners and operators reduce these risks?
Traditional sit-down restaurants and mobile food businesses have uniquely different needs when it comes to insurance. While there is some overlap in coverage needs, it’s important to understand the differences when it comes to insuring your business. Traditional Sit-Down Restaurant Insurance Needs. Property Insurance.
Property Insurance + Business Interruption Insurance. Property insurance covers the replacement or repair of your business’s damaged physical property. Policies vary depending on the type of event leading to a loss and what, specifically, is insured. Business interruption starts where property insurance leaves off.
Restaurants are coming back saddled with a lot of risks in an insurance market that’s the hardest it’s been in over 20 years. It’s created an environment where insurance premiums on some lines are doubling (or more) if coverage is available at all. Insurance Pressures Facing Restaurateurs.
There are multiple reasons for this including the inherent dangers in preparing and serving food, frequent staff turnover resulting in new team members who are unfamiliar with your operations, and a continuous stream of customers who can be injured or become ill during or after their visit, to name just a few.
restaurant industry has a loaded plate as 2021 picks up steam – especially from an insurance and financial protection point of view. “The prospects for fine dining and sit-down restaurants are going to remain strained for all of 2021,” said Doug Groves, founder at Program Insurance Group, in College Station, Tex.
In California, annual fees for a liquor license can also reach up to $1M, depending on factors like operating hours, customer policies, and whether the establishment offers on-site brewing. Keep your operations flexible and plan for challenges by managing costs wisely. This financial burden is not unique to Florida.
A new year is creeping up on us again, bringing fresh opportunities—and challenges—for restaurant operators. Simplify Health Insurance Open Enrollment Health insurance is one of the most valuable benefits you offer, so make open enrollment a central, streamlined year-end activity.
Many restaurants turned to their insurance policies to provide protection for revenue reimbursement, (i.e., insurance proceeds for loss of revenue), but found the majority of insurance policies, unfortunately, did not / do not provide the coverage they anticipated. How Insurance Policies React.
In addition, most restaurants should have business interruption insurance, and that insurance may provide some relief from economic pain. Business interruption insurance covers the loss of income that a business suffers after a disaster. Gather Your Complete Insurance Policy. ” That’s just not true.
While there is an opportunity for restaurant operators to reap the benefits of increased alcohol sales, they must pay attention to the potential liability. It is also critical for restaurant owners to have some form of liquor liability insurance coverage to protect themselves from any liability from unforeseen alcohol-related tragedies.
Between obsessing over food and finances, one key consideration shouldn’t fall through the cracks—restaurant insurance. Having trouble deciding what kind of insurance your restaurant needs? What is Restaurant Insurance? Why Do You Need Restaurant Insurance? What Does Restaurant Insurance cover?
Benefits and Protections Full-time employees are often entitled to benefits such as health insurance, paid leave and retirement plans, whereas part-time and temporary employees may not be. Independent Contractors Independent contractors operate their own businesses, control how and when they perform their tasks, and handle their own taxes.
Restaurant and business owners should always be prepared in the event of loss or damage to normal business operations. Navigating these policies and their intricacies is a daunting task, even for some experts in the insurance industry.
This goes to show that restaurant staff pay, which makes up about a third of restaurant operating costs , is one of the most important facets of running a restaurant. The former are entitled to benefits such as minimum wage, overtime pay and workers’ compensation insurance.
Despite external pressures on talent, ample opportunity exists for restaurant operators to prepare for a year of constant change. With 2021 nearly wrapped up, restaurant operators across the country are looking to the New Year with cautious optimism. For leaders in the restaurant and hospitality industry, now is the time to adapt.
The most important thing new owners should know about insurance coverage is that it’s a vital part of running their business. However, having proper insurance coverage is a huge part of protecting the business, and the ownership, in the case of an accident or incident. Getting insurance coverage is not just a box to check.
Variety of Voluntary Benefits : Voluntary benefits can include personal insurance policies like pet, travel, car and homeowners’ insurance, with a discount for enrolling in coverage. In fact, 69 percent of employees rank pet insurance as the most significant voluntary benefit an organization can offer.
Society Insurance has spent 110 years helping protect businesses and has seen firsthand how nuclear verdicts have evolved in the U.S. Even if a restaurant doesn't face a verdict, the prevalence of such cases can drive up insurance premiums industry-wide, increasing operating costs. Recent data shows that U.S.
It is important for restaurant, tavern and bar owners to have the right insurance, however, there are so many different types of policies, and even when you zero in on what is needed, the options are often complex and difficult to compare. A non-admitted insurance company has not been approved by the state’s insurance department.
Ahead of New Year’s Eve celebrations, Society Insurance, which provides coverage to the hospitality industry, has put together the top four tips on how a restaurant can protect themselves, their patrons and their employees as well as create a safer environment on Dec. Implement comprehensive standard operating procedures and policies.
Consider PPP loan insurance to cover damages, legal fees and fines if the SBA determines that your business was ineligible for the loan. Chang’s won PPP exemptions to bridge their operations until they open their doors open once again. ” Get to Know PPP Loan Insurance.
"As awful as it was, the pandemic pushed restaurants to completely rethink their operations in order to survive, and some of the changes they made during the pandemic have continued to be beneficial to those restaurants and industry at large." The pandemic made speed, accuracy, and seamless ordering non-negotiable.
Cybercriminals are increasingly targeting restaurants, seeking to steal sensitive customer data and disrupt business operations. That's why it's essential for restaurants to consider cyber liability insurance. With cyber liability insurance, the costs of hiring attorneys and other legal expenses can be covered.
With the laundry list of everything bar and restaurant owners need to handle on a daily basis, proper insurance coverage should be top priority. Proper communication with the insurance agent about all the ins and outs of the restaurant can help set up the policy right from the get-go.
This is where compulsory liquor liability insurance becomes critical, as it protects businesses that serve, sell, supply, or distribute alcohol. However, relying solely on liquor liability insurance may leave businesses exposed to costly risks. A compelling example is Palmetto Brothers Dispensary in Laurens, South Carolina.
Even experienced operators know that navigating the compliance requirements laid out by each state’s franchise registration rules isn’t easy. What may be overlooked within it are risk and insurance issues. Risk and insurance should be top on the list. Franchisees must specify the franchisor as an additional insured.
The carryout-only brand of It’s Just Wings, operating out of Chili’s kitchens. In this changing environment, the right and adequate amount of insurance protection has never been more important. These virtual brands have allowed restaurants to hone in on hot niche trends (anything chicken related, typically) with consumers.
Double digit rate increases for the next few years, coupled with increased labor and materials cost could mean difficult navigation for many operators. Many operators simply accepted these cost increases for 2022 due to the ongoing labor shortage, and the compliance requirements never came up for discussion.
. – Noah Glass, Founder & CEO of Olo The pandemic was a transformative period for the restaurant industry, leading to significant changes in how both restaurants and consumers operate. Technology continues to transform restaurant operations. The workforce also experienced a major reset.
Restaurant insurance is complicated. Just as owners have to play many roles in management, marketing, and menus, their insurance has to protect their finances, patrons, and employees. And who has the time to read a 100-page insurance policy? These are often excluded from standard policies and be potentially costly.
It’s a lawsuit under Part B of workers’ compensation insurance – a claim of “willful neglect” that has been rare until this year. Operators can help themselves avoid Serious & Willful Neglect claims by following four courses of action, starting today: Follow best practices. Claims management counts.
Ahead of this year’s football season, the team at Society Insurance has put together the top four tips on how a restaurant and/or bar can protect themselves, their patrons and their employees as well as create a safer environment for football season and beyond. Security and floor staff see what is happening throughout the operation.
In what has been a closely watched case, a court in France recently ruled that France’s largest insurer must pay on a claim brought by a restaurant forced to shut down due to the COVID-19 outbreak. Many insurance companies, however, have already begun to signal their intent to deny pandemic-related claims.
Society Insurance, which provides coverage to the hospitality industry, has put together four tips on how restaurants and bars can help create a safer environment on St. Security and floor staff see what is happening throughout the operation. Implement comprehensive standard operating procedures and policies.
What can restaurant operators learn from this experience? What should restaurant operators take away from this in regard to how they should handle employee and customer data moving forward? Restaurants should consider vetting third-party vendors to performing these functions, and ensure those vendors are properly insured.
Based on the above, owners and employers that choose to require a vaccine should understand how their approach could impact their workers’ comp insurance liability. Many states also have individual guidelines as to what is covered under workers’ comp insurance for adverse reactions to voluntary vaccinations.
With every online order, millions of customers are entrusting restaurant owner/operators with their most essential information. However, thanks to the explosion of online ordering, owner/operators are left managing massive data sets — without any experience in doing so. Without it, just one breach could spell the end.
In that case, there may not be any insurance outside the driver’s personal auto insurance. If you’re contracting with a third-party delivery service, let your insurance agent know. Your agent can review the contract to determine what types of insurance you may need to protect your restaurant.
For restaurant owners and operators, success depends on more than just great food and excellent serviceit requires staying informed, connected, and supported. They also provide timely updates on new laws and compliance requirements, helping restaurateurs stay ahead of changes that could impact their operations.
Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2024. The artistry of chefs and the creativity of restaurateurs will continue to be at the forefront, while these tools become operational enhancers.
Indeed, many businesses that were caught flat-footed are on the brink of closure due to disruptions in their daily operations. By having a crisis management plan in place, you can detect risks early and mitigate them before they disrupt your core operations. Operating system failure. What Risks Does The Hospitality Sector Face?
How do restaurant operators find efficiencies to minimize costs without degrading quality or service? One desirable option is to leverage low-power IoT solutions to deliver energy and maintenance efficiencies and reduce operational expenses. Each year, insurers pay out $2.5 billion for water damage claims. Staying Competitive.
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