UW Insure Brokers Logo

photo of a new restaurant

Restaurants Insurance

A Cafe or Restaurant often operates on thin profit margins, balancing food costs and pricing to attract customers. As a result, there's a good chance most will barely hover above bankruptcy when a fire or major robbery incident happens. That's where insurance comes in.

Restaurant Insurance Quote

Insurance is a means of financial protection where the money for compensation is drawn from a pool of funds from other insured entities. The rates that you pay for your policy can be affected by many variables, including fire prevention measures, hygiene, the inclusion of deep fryers, and emergency exits. The higher the premium means, the higher the risk. So, lowering risk in your restaurant could massively decrease premiums. In addition, keeping up with government regulations and codes would increase the overall safety of your business and make it seem more appealing to insurers.

Understanding Restaurant Risk

Fire fighting

Your cafe or restaurant is considered high risk if it has some elements in place. Things such as large cooking surfaces, large commercial deep fryer cookers, and never serviced electrical devices. A coffee maker that always turned on, for example. These will present a significant fire risk.

For most fire prevention and health officials, a fixed fire suppression system must always be ready and frequently checked on-site. Properly maintaining equipment such as Oil fryers, griddles, range tops, and greasy hood is necessary. The suppression system must meet UL300 standards set by the fire code. Requirements include

  • semi-annual inspections,
  • the inclusion of a manual activation switch, and
  • the ability to shut off all fuel lines.

Having the proper fire extinguisher type located at an appropriate location is essential. K-class extinguishers are specifically made for putting out grease and oil fires; they are commonly found in family restaurants in the dining hall. They work by using alkaline substances to absorb vapours. They are to be within 9.1 meters of hazards, and staff must know how to operate them.

Hygiene and cleanliness 

The kitchen must follow Proper hygiene protocol to avoid cross-contamination and the spreading of foodborne illnesses. Having different cutting boards and aprons for different ingredients should be standard practice. After every use, uniforms and tablecloths should be clean. There should be separate preparation areas and freezers for other ingredients, like produce and meats, cooked and raw. Alway provide staff with proper tools for preparing the food and for cleaning.

An example would be having knives sharpened regularly and providing mops to staff. Fume removal hoods are to be routinely cleaned by certified professionals. Schedules can depend on the volume of customers and appliances used, ranging from monthly to yearly. Clean all appliances, utensils, bathrooms and floors daily. Remove all trash, and replace worn-out items in time. Operating at peak efficiency requires the right tools and proper hygiene.

Oil fryers

If your cafe or restaurant offers oil fryer food on the menu, ensure the staff are properly trained on using it and how to handle it. Hot oil is dangerous as modern fryers keep it below their ignition temperature. Safety precautions such as placing a non-slip mat below the fryer and placing partitions in between it and other cooking surfaces can reduce the chances of injuries. In addition, regular cleaning and maintenance will go a long way in keeping you, your business and your staff safe.

Exits and Signs

Keeping up with safety measures like illuminating emergency signs and dedicated emergency exits can go long. For example, radioactive isotopes like tritium are used to power up the signboards. Therefore, they should be checked for their half-life date and replaced if broken. Likewise, electronically powered signs should have their backup batteries checked for charge and connections free of residue.

Property and Liability Insurance

Running a restaurant safely and efficiently requires lots of work. Mistakes are not an option when you are handling sensitive ingredients. Insurance can help mitigate the repercussions in the event of an unforeseen accident. Property insurance and liability insurance can both help to reduce the harm done.

Property insurance will cover claims involving property damage.

It will cover incidents from various causes, including fires, lightning and theft. Liability insurance will cover claims involving third parties. It too can cover a wide range of accidents, from bodily harm to reputation damage. When operating on a thin profit margin, insurance can mean the difference between closing permanently to staying open for the next generation.

Please ask us for a free quote or further information.

Restaurant Insurance Quote