Food spoilage and contamination insurance is a must for restaurants and any businesses that work with food. If a refrigerator breaks down, replacing spoiled inventory could cost thousands of dollars. Or worse. If a customer gets sick after dining at your restaurant, you could be held liable for medical expenses and could be forced to close your business. For example, take Chipotle, the Chipotle foodborne illness outbreaks are some of the most high-profile food safety cases in recent history. Chipotle Mexican Grill agreed to pay a $25 million dollar fine, the largest-ever fine in a food-safety case. Chipotle will pay this amount to resolve criminal charges related to Chipotle Mexican Grill Restaurants’ role in a series of food safety cases between 2015 and 2018, resulting in over 1,100 people getting sick. Could a situation like that happen to your restaurant? Absolutely. Restaurant insurance can help you handle the headaches and cost of an outbreak.
Have General Liability Insurance
A restaurant needs general liability insurance to cover bodily injury or property damage claims that result from accidents, like slips and falls. The policy also covers product liability, which protects your restaurant from claims arising from food-borne illnesses. Product liability insurance is the key coverage that will help in the event of an illness outbreak. If people become sick or injured by your food, they have a right to recover their losses. In the event of an outbreak, this might mean a large number of people suing you to cover their hospital bills.
Be Sure To Include Product Liability Insurance In Your General Liability Coverage
Accidents can happen at any food or beverage business. When a customer gets hurt on your property, general liability insurance can pay for everything from an ambulance ride to the cost of a lawsuit if your business is sued.
General liability insurance with product liability covers:
- Legal defense fees
- Medical expenses
- Court-ordered judgments
- Claims of food poisoning or food-borne illness
- Funeral expenses in fatal incidents
Hopefully, this coverage is included in your general liability policy. Make sure to read over your policy and talk to your insurance agent to make sure you have coverage if there is an outbreak.
You Can Be Held Liable For An Outbreak Even If It Is Not Your Fault
Many states have laws outlining the doctrine of “strict liability” which favors consumers over sellers and manufacturers in issues of product liability. Even though you practice proper food safety, it can be very difficult for a consumer to find out where a product was contaminated or made faulty. The vendor, distributors, or manufacturer can be held legally and financially responsible for the damages to the consumer. This means that you can be held liable by a sick consumer even if the raw ingredients were contaminated when you bought them. You can minimize your risk of outbreaks by practicing proper food and cooking safety but that will not eliminate your responsibility if an outbreak occurs. Suppliers, vendors, and restaurants can all be held liable for a food-borne illness outbreak regardless of fault.
Find The Right Plan At The Best Price
Many factors determine which general liability insurance policy is the right one for your business. Businesses typically have a maximum price point they’re willing to pay for general liability insurance, so a good way to quickly narrow down your options is to go through your quotes and eliminate any policies with premiums that you can’t afford. Remember, a cheap policy is likely cheap for a reason, so you need to look at more than cost alone. You want to make sure it provides sufficient financial protection in the event of a lawsuit or other incident that could affect your business.
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About Gartman Insurance
About Gartman InsuranceWe are your trusted, family-owned independent insurance agency. Your family, your business, and your possessions are all important to you, but you may not know how to best protect them. We have the experience and local knowledge to navigate the unique risks you face, serving as your insurance advisor. Since 1999, Gartman Insurance Agency has proudly served our customers in Kentucky, Ohio, Indiana, Tennesee, and Alabama, helping them to find the right insurance coverage to fit their needs. Our customers are our priority, and we are always finding ways to better serve them, whether that’s helping them find a better policy or giving them the power of choice when it comes to their insurance coverage.
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