Everything that has happened over the last two years has shown us that anything is possible.
There are numerous unforeseeable scenarios that could make your company accountable financially or deter customers in other ways. And that lesson is particularly evident in the restaurant sector. Having a thorough understanding of all available coverage alternatives is essential for restaurant owners and operators.
The first step is to have general liability insurance.
Risk is increased in settings like pubs and restaurants. There is a larger likelihood that staff members or patrons would trip and fall, contract a foodborne illness, or sustain property damage, and when that happens, the restaurant is typically held accountable. In order to cover a customer’s accident or illness caused by the restaurant’s food or premises, general liability coverage is a fantastic starting point for restaurants to include in their insurance portfolio.
Since their policy includes coverage for things like bodily injury, property damage, and personal injury, the majority of restaurant owners and operators believe general liability coverage is a stopping point. To properly protect a restaurant against these threats and the long-lasting effects they may have on daily operations, a larger net frequently has to be cast. However, these are only a few of the allegations that could be used against a restaurant.
Broader Coverage’s Advantages: Trade Name Restoration
Consider the dangers that, if they materialize, might have a negative effect on your restaurant. A devoted patron could get a serious foodborne illness and vow never to eat at your restaurant once more. An angry unhappy employee may do damage to your property or even start false stories about your business that harm its reputation. A pandemic might stop people from eating out and stop your restaurant’s financial flow.
All of these situations have the potential to harm a restaurant’s operational processes, and the harm is frequently too severe for a general liability policy to be very useful. Understanding all of the coverage alternatives that are available can help you be as prepared as possible with the appropriate coverage for a circumstance like this. Though courts have recently provided conflicting opinions on that, business interruption plans typically exclude damages coming from anything other than actual, physical damage.
A trade name restoration insurance program, which extends beyond the purview of a standard general liability coverage to meet the particular costs connected with things like foodborne illness outbreaks, property damage, and more, is an additional choice.
One of our restaurant clients with hundreds of locations across multiple states experienced a major foodborne disease loss that, if not for trade name restoration, could have had a severe negative impact on the company. A restaurant’s reputation can be destroyed by the rapid escalation of negative news after word of their customer’s illness reached the news station and went viral.
We had counseled our client on a trade name restoration policy and taught them how to balance the risks and rewards. Millions of dollars in lost revenue and unforeseen costs, such as immunizations, were prevented for our customer.