Changes in Restaurant Operations- Make Sure the Risk is Covered

The Restaurant industry is beginning to recover from the recession faster than some other industries. The National Restaurant Association predicts flat sales through the end of 2010, which is a good sign compared to the last 2 years! Here are a couple of new things that are happening in the restaurant business that need attention for their risk as well:


1) An emerging exposure and coverage need for restaurants is cyber risk insurance. Like other businesses, restaurant owners rely more and more on the Internet for various aspects of their operation. Using the Internet as a tool to push more business also means new exposures such as data/security breach, copyright or trademark infringement, data destruction and/or corruption as a result of a virus, as well as firewall and network security attacks.

Internet use exposes restaurants to risks that may not be covered under many commercial insurance policies. Make sure you are covered properly.

2) Similarly, restaurants use more sophisticated equipment to operate their businesses than in the past. Whether it is computer-based cash registers integrated with point-of-sale management systems, multiple refrigeration systems, commercial-grade sound systems, or inventory scanners, restaurants are using technology to be more efficient and help manage their business. You just need to make sure that you have equipment breakdown coverage for this technology. It is easy to overlook this coverage.

All restaurants are becoming more sophisticated in their approach to running their business. This is absolutely necessary. Just make sure you are also keeping up with the exposures that are inherent in those changes.

Let me know how your restaurant business or any other business is changing. I would be interested to know what changes you are making, and how it has impacted your business.

Bobby Bland PWCA, CIC

Vice President

Commercial Risk Service