It’s easy to understand why the food is a restaurant’s most important asset. So, the restaurant owner has to protect the food to ensure successful operations.
Should something happen to a restaurant’s stock, the results could be bad. In the event of food loss, a type of protection called food spoilage insurance might aid the business.
Why Food Spoilage Could Harm the Business
It is against the law for most restaurants to serve contaminated or spoiled food. Doing so might cause customer illness or injury, and open the business up to liability risks. Should food spoilage occur, the restaurant usually has to dispose of the damaged items.
Many restaurants have to throw out an entire portion of contaminated food, not just one or two pieces. Restaurant stock is expensive, so spoilage losses might cause a blow to profits. No one wants to lose money having to replace this stock. Should the restaurant have a significant stock loss, it might even have to shut down to re-stock. This could cause another drop in profits.
Insurance for Food Spoilage
In the event of severe food spoilage, you don’t want to lose money having to replace stock. Many restaurants carry food spoilage coverage to help them get money to replace stock. Carrying food spoilage protection can help the business in cases of:
- Replacing contaminated food
- Lost income due to a shutdown
- Requirements to clean or sanitize equipment
- Medical needs of harmed or impacted employees
Nevertheless, check your policy before you make a claim. It may not cover every instance of food spoilage. Most spoilage policies will come with maximum limits they will pay in the event of food spoilage. Furthermore, in some cases, it may not be pertinent to file claims against your insurance. Isolated incidents of spoilage may mean you can easily and affordably replace stock. You often don’t want to make a claim unless you have to.
Preventing Food Spoilage Incidents
Restaurants can take steps to protect their assets from spoilage. Doing so can potentially prevent insurance claims.
- Abide by all local sanitation and food service laws. This will help ensure you never have to get rid of stock because of unlawful mistakes.
- Follow proper food storage techniques. Store each item in areas with the proper climate and humidity settings.
- Inspect and maintain refrigeration and preservation equipment. If any item malfunctions, it may not properly preserve the food.
- Consider investing in electrical generators. This can help preserve food in case of losses of power or other problems.
Getting restaurant insurance should be part of your business plan. That’s why Buschbach Insurance is here to guide you through the process. Explore our website for more information.
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