Risk Management Strategies for Restaurant Owners

The restaurant industry is rife with risks that can potentially lead to huge financial losses. Therefore, one of the secrets of running a successful restaurant business is having a comprehensive risk management plan. The plan should cover everything from liquor liability lawsuits to third-party property loss or bodily injury. Remember, a single accident or incident can cause your restaurant to shut down permanently. To create an effective risk management plan, follow these six strategies:

  1. Implement Alcohol Policies
  2. Implementing suitable alcohol policies can help create order and prevent alcohol-related injuries and deaths that account for 95,000 fatalities every year. If you serve alcoholic drinks in your restaurant, stipulate rules and regulations that govern patrons’ drinking habits as well as their code of conduct. Doing this will greatly minimize cases of aggression, injuries, and property damage involving intoxicated patrons.

  3. Comply with Regulations
  4. Due to the health and safety concerns involved, the food and drink industry is highly regulated. Therefore, restaurant owners need to comply with all set regulations to avoid legal penalties that may cause huge financial harm. For instance, you need to have valid business documents such as a business license, liquor license, and foodservice license to operate legally.

  5. Make Use of Technology
  6. Cyberattacks and data breaches can also cause financial losses, and in worst cases, business closure. To avoid such unfortunate incidents, restaurant owners need to protect their employees’ sensitive payroll information, including bank account details, dates of birth, social security numbers, and addresses. You can achieve this by implementing multi-factor authentication in your systems and installing security cameras, anti-virus software, password protection tools, and firewalls in your devices and premises. Another way to enhance cybersecurity is by purchasing the right cyber liability insurance policy.

  7. Observe Health and Safety Codes
  8. Foodborne illnesses affect about 48 million Americans annually, leading to at least 120,000 hospitalizations and 3000 deaths. Such diseases largely emanate from poor handling of food. Keeping this in mind, restaurant owners should adhere to the health and safety codes to prevent possible food poisoning. Every county in the U.S. has food safety guidelines and regulations that touch on, among other things, employee hygiene, food storage, health inspections, and safety equipment.

  9. Keep Equipment in Good Condition
  10. Even a slight malfunction in any of the crucial equipment can lead to a disaster. For instance, faulty heating equipment can cause a fire outbreak that can injure people and damage property in the restaurant. Such a disaster can result in substantial financial losses, a bad reputation, and business closure, especially if you don’t have the right restaurant insurance in Seattle. Therefore, hire professionals to inspect your equipment regularly to prevent possible catastrophes. Take note that your entire premise requires regular maintenance to enhance safety.

  11. Train Employees

Employees contribute a great deal to risk management in any business. For instance, when it comes to cybersecurity, training employees on how to secure business devices can significantly help prevent potential cyber threats. Similarly, educating them on hygiene issues and ways of handling intoxicated patrons can help prevent food poisoning and reduce cases of violence respectively. Therefore, be sure to train your employees on all safety aspects as pertains to your restaurant business.

How Humble & Davenport Insurance Can Help

Even with a comprehensive risk management plan, you still need the right restaurant insurance coverage. Contact our experts at  Humble & Davenport Insurance today to get started on your customized coverage!

By Humble & Davenport Insurance

At Humble & Davenport, we’re experienced in identifying the unique needs of the men and women who live, work, and play across King County. We have the ability and the skills to custom craft coverage for each client, whether the need is for personal or commercial coverage.

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