As your restaurant expands into new areas of business, new exposures to risk must be evaluated.
As restaurants venture into new mediums of extended business models like food trucks and pop-up eateries for a single night only, many fail to consider the unique exposures these innovative concepts create. These new ways of doing business are very beneficial to the restaurant owner and to their customers. There may be some new gaps in your current insurance program that need to be discussed promptly. As a restaurant owner or entrepreneur you should know the gaps in your coverage and how to close the gap in order to avoid any future issues.
The New Gaps
Restaurants that now deliver their menu items to homes and offices confront a new risk: drivers delivering food in their own cars. Some businesses require their employees to make deliveries in their own vehicles, then later compensate them for gas. If they get into an accident using their own vehicle, the restaurant owner is not covered for the loss. Unless the restaurant owner has purchased hired & non-owned automobile coverage.
Food trucks are not controlled environments because it’s in motion. Owners of these trucks need to purchase separate inland marine, commercial auto, workers compensation and general liability insurance policies.
Finally, credit card information can be stolen, and the one who will be at fault will be the restaurant owner. According to a study conducted by Verizon, restaurants are the number one targeted business when it comes to cyber breaches.
Restaurants are changing how they conduct business; don’t leave your growing business exposed to new risks. For all of your commercial insurance coverage questions, please contact your team at Hoffman Brown Company in Sherman Oaks, California. We are happy to be of service!
