Why Insurance Is a Must in the Food Service Industry

No industry is safe from injuries and hazards and the food service industry is no exception, being one of the highest-risk environments. In the restaurant industry, work is physically demanding with high-pressure, sharp objects and hot stoves posing great risks. With so many exposures, if you still haven’t considered the associated costs and risks to your restaurant and employee injuries, it’s time that you should.

In a study by Johns Hopkins Bloomberg School of Public Health, foodborne illness outbreaks in U.S. restaurants account for millions of dollars in lost revenue, fines, inspection costs, staff retraining, and lawsuits. The model also predicts that one single outbreak that affects five people in a fast-food restaurant could cost over $4,000, and one that affects 250 people could cost around $1.9 million.

The coverage food service businesses need 

To ensure that your business and employees are adequately covered, business owners need to consider various coverages which can be purchased as a package. Some of these coverages can be added to your business owners or commercial package policies. These packages can include policies such as: 

• • General liability, which can provide coverage for customer slips and falls in your restaurant, parking lot, and other premises. 
  • Product liability covers customers that might fall ill from a foodborne illness. 
  • Workers’ compensation (mandatory for every business), can cover potential risks such as medical expenses and lost wages from employee injuries.
  • Employment practices liability insurance protects your restaurant against harassment, discrimination, or wrongful termination lawsuits. 

You might also want to consider additional coverages such as flood or umbrella coverage that can extend your liability coverage up to USD$10 million. The coverage and rates can vary depending on numerous factors such as the number of employees you have, claims history, and the average number of customers served annually. 

Food service employees’ safety tips 

Even with the best practices in place, accidents happen! To ensure a safer restaurant and reduce the severity and injury frequency of employees and customers at your premises, these few tips can help. 

• Require safety training for all new employees and annual training. New employees should be trained properly in all safety processes and procedures and regular safety training to keep employees’ minds fresh on these procedures. Post emergency numbers and first aid procedures in all food prep areas. Always have first-aid kits packed and readily accessible. 
• Proper lifting techniques. Avoid strains and sprains by reviewing the appropriate lifting of heavy items with your team. Provide your employees with carts and lifting aids to prevent physical strains. 
• Clean up spills immediately. Wet substances on the floor and surfaces are a significant hazard. Remind employees to clean up after themselves and to clean spills immediately. Ensure that caution signs are posted around the wet areas and alert others of the spill and slippery floors. Rain and snow can also add to the fall hazards. Place slip-resistant doormats on your restaurant entrances and require employees to wear safety shoes. 
• Always keep knives sharp. Ironically enough, dull knives are more of a threat than sharp knives. You have more control and are less likely to slip with sharp knives. Leave the sharpening to a professional. Not everyone knows how to sharpen a knife correctly. Knives should only be used to prepare food and never to open boxes or cans. 
• Proper use of knives. Your employee needs to be taught how to use and cut using kitchen knives properly. The appropriate technique can save them a finger! Their index finger needs to be around the blade, and the thumb and index finger need to be opposite, gripping each side of the blade. The remaining fingers need to be loosely curled around the knife handle. Tuck in those fingers that aren’t holding the knife. Ensure your employees use stable cutting boards and cut away from their bodies. Remind them to avoid distractions as they cut or slice food. 
• Protect your employees from cuts and burns with special gear. Employees using knives, slicers, and sharp objects should try and protect their hands with a steel mesh or Kevlar gloves. You can try to avoid burns by wearing oven mitts or heat-resistant gloves. 
• Create and stick to strict guidelines when handling, storing, and preparing food. Food should be kept per the local health codes and cooked to the required temperatures. Always clean and sanitize surfaces that come in contact with any type of food. Remind employees to have good hygiene practices. 

Working in the food service industry is a highly hazardous environment, and therefore, it’s not a matter of “if” injuries will happen but a matter of “when.” In other words, you need to be a conscientious restaurant owner and think about how you can protect yourself, your business, and your employees. Contact one of our insurance specialists to determine whether your commercial and workers’ comp insurance programs are covering all of your bases.