Every business has its own unique set of liabilities, and pizzerias are no exception. Pizzerias face many of the same liabilities as other establishments in the hospitality industry, such as kitchen injuries and food spoilage, but pizzeria mainstays like delivery add additional risks to the business, and as many pizzerias are independent operations that are not part of larger chains, a hefty lawsuit could quickly lead to the end of the establishment. When finding a Restaurant Insurance policy for your pizzeria, be sure to look for specific coverages that address the following common liabilities.
Power Outages and Spoilage
In any type of food service, the most important thing is making sure that the food served to customers is safe for consumption, and a power outage can be devastating to a business. According to Atmospheric and Environmental Research, the annual cost of power outages to businesses in the United States is over $70 billion. A power outage can cause many problems for a business including reputational damage, revenue loss, wasted overhead, and potential restoration costs, and those with perishable inventories need to worry about food spoilage. However, power outages are not the only things that can cause food to perish, and every establishment needs to keep track of their inventory and regularly check to ensure that nothing has spoiled.
While Food Spoilage and Food Coverage varieties of insurance do exist, it is important to understand the limits of your policy. Spoilage, for example, is only enacted if the loss is caused by a loss listed on the policy (which can typically include power outage, equipment breakdown, and equipment failure).
If your establishment has employees making deliveries on the clock (and especially if you utilize company cars), it is necessary that your business have comprehensive Auto Liability coverage that includes owned, hired, and non-owned forms of coverage. In addition, all delivery drivers should be thoroughly screened in order to ensure that they have clean driving records and are not likely to cause accidents while driving for your business.
Any establishment that serves alcoholic beverages must include Liquor Liability insurance within their policy. If a patron drives under the influence or causes bodily injury or property damages while under the influence of beverages served at your establishment, your business is likely to be held liable. In fact, most states require establishments that serve alcohol to carry this form of insurance. In addition to liquor liability, your establishment should also carry Host Liquor Liability and Legal Liquor Liability in order to ensure that all bases will be covered in an alcohol-related incident.
Workers’ Compensation Claims
According to OSHA, the U.S. Bureau of Labor Statistics has reported that in one year over 60,000 food preparations and serving employees injured themselves on the job badly enough to lose at least one day of work, with nearly 20 percent of said workers losing a month or more of work. Restaurants have a number of possible workers’ compensation claims: employees who work in the kitchens are vulnerable to burns, cuts and crush injuries from kitchen machinery, flour inhalation, slips, and falls. In addition, delivery drivers are at risk of collisions, whether it is by their fault or the fault of another driver. The wide range of potential on-the-job injuries make Workers’ Compensation coverage a necessity for pizzerias and other businesses within the hospitality sector.
About DiGiacomo & Associates Insurance
For the past thirty years, DiGiacomo & Associates Insurance provided comprehensive insurance solutions to Pennsylvania and Delaware. As a family-run business, we provide caring, personalized services to each one of our clients and take the time to determine the best coverage for each individual customer. For more information, contact us today at (610) 935-8900 to speak with one of our representatives.