Restaurant Risk

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Other exposures Make sure not to overlook these other potential exposures to risk. These exposures may depend on the type of restaurant the insured owns. Emergency planning Exits: Do they meet code for type and number? Are the exits well-marked, well-lit usable exits? Is the panic hardware appropriate? Emergency lightning: Is there emergency lighting at exits only? Is there full emergency lighting throughout? Fire protection: Is the restaurant "fully sprinklered"? Is there an emergency alarm? Is the personnel fully trained? Evacuation plan: Is there a formal evacuation plan? Are all employees trained on procedure? Is the evacuation plan posted? Are there emergency drills? Product quality control Suppliers: Are all food products easily traceable to supplier? Is there a formal QC (quality control) program used for incoming food or required of suppliers? Are all purchases from a reputable local supplier? Does the insured grow any of their own foodstuff? Perishability: Are the expiration dates regularly checked? Are perishable items stored in well-maintained refrigeration equipment? Is there a formal FIFO (First In First Out) system in place? Sanitation: Is there a regular pest control service? Is there good employee training/supervision in sanitary techniques? Is there continuous clean up with a full clean up after each meal? Incidental Retail: Are there retail sales of "gift items" on premises? Are there gift-type or prepackaged food stuffs sold? Contractual risk Contracts with suppliers Quality control stipulations Product recall indemnification Temperature control (transport and delivery) Lease agreement Insurance requirements Property Insurance Tenant's improvements and betterments Boiler and machinery related exposures Franchise agreements Compliance with intellectual property Adherence to safety programs Indemnification from franchiser Pest control agreements Specified pests eradication Cross-contamination hold harmless agreements Maintenance contracts Grease removal Other maintenance contracts Accounts receivable Catering and business accounts Electronic data processing Office computers and data Cash registers (depends on the device) Valuable papers and records Key business documents and contracts Intellectual property Franchisee Trade secret confidentiality Adherence to trade mark, trade dress obligations from franchiser Infringement issues - non franchisee Coverage in the CGL Employee dishonesty Money Fake credit card slips Theft of customer credit card numbers Stock Limit of insurance Trigger of coverage Proving the loss

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.