When it comes to Business Insurance, Workers Compensation for Restaurants is probably ​one of the most underrated and overlooked policies for restaurant owners. I know I've done posts on Workers Compensations before, but this one is more geared for the restaurant industry. 2020 has been tough for restaurants and Workers Compensation claims haven't slowed down. Here are my thoughts on it:

Let's face it, there are many perils when it comes to restaurants. Lots of cutting and machinery where accidents can inevitably happen. There's always cleaning, which can lead to slippery floors.  Add in the fryers and you have a recipe for disaster. Lastly, there always seems to be some chaos during that lunch or dinner rush. Trust me, I know, I worked in the restaurant industry for many years, accidents are going to happen. Having a plan in place for when they happen is critical to your business and your employees. You can have safety briefing after safety briefing, but accidents are bound to happen. 

Since Workers Compensation is not required in the state of Texas, some restaurant owners forgo coverage. Others, believe it or not, think it is included in their Businessowners Policy. It is not. It is a separate policy. As far as the cost, when you think about what you get, it's relatively inexpensive. Insurance companies are very hungry to write this line of business and premiums are very competitive at this time. 
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As a restaurant owner, don't you want to protect your employees? This coverage provides that coverage for your restaurant. If you want to take it upon yourself and pay out of pocket, that could get very costly and is extremely risky. If this is your plan when it comes to work related injuries, please be aware that the employee can sue you if they feel their needs are not being met. Workers Compensation offers employer protection, which protects you from being being sued. 

Worker Compensation for Restaurants is definitely something to consider. If you have any questions about the coverage, please feel free to contact me. I can also help get you a quote with very little information. 

Jason Matison
Commercial Insurance Agent
Austin, Texas

The recent riots in most major cities has prompted us to provide some much needed information regarding Business Insurance and how it interacts with riots and unrest. Generally speaking, damage to your building and other property due to a riot is a covered peril.  This would include fire, theft, and vandalism. Although some insurance companies might exclude theft if you don't have a monitored alarm. If you were forced to close your business by civil authority, but had no building damage, you may be able to collect for lost revenue, depending on how your policy is written. Remember, each policy is unique, so call our office for a review. Property damage caused by rioting, civil commotion, and vandalism are covered under most standard commercial insurance policies.

Glass is usually part of covered property and built into base coverage, as long as it is part of a building or structure (i.e., store windows and plate glass on office fronts).  However, there may be a separate glass deductible and separate coverage limits.  In some cases, you may need to have a special glass endorsement for coverage to apply.

Businesses that are forced to shut down operations or limit hours due to rioting, vandalism, or civil commotion, and have coverage for the loss of income under business income insurance (also known as business interruption) should be covered.
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What If the Fire Department Refuses to Put out the Fire?
Insurance companies generally will not deny a claim because the fire department pulled back for safety reasons.  If civil authorities limit or restrict access to a burning building, your insurance will not be jeopardized.

Final Thought
Each policy is unique and all losses are subject to your actual policy terms and conditions. Give our office a call to review your coverage. We are here to help you manage your risk. 

What do I do when a claim occurs? Should I contact the insurance company and file a claim? This is a very important question, and since it comes up every so often, it's worth writing about. Sometimes business owners want to take matters into their own hands and fix a problem rather than filing a claim. After all, most are entrepreneurs and this take action mentality is instilled in them, but sometimes this can get a business owner in trouble. So what should be done in the event of a claim, lawsuit, or occurrence? Let’s take a look at what the policy says.

Whenever the insured becomes aware of an occurrence or offense that may result in a claim, notice must be given to the insurer as soon as practicable. The notice may be given either oral or written. It should state (1) how, when, and where the occurrence happened, (2) the names and addresses of any injured persons and any witnesses, and (3) the nature and location of any damage or injury resulting from the occurrence or offense.
 
When a claim or suit is brought against any insured, the insured must (1) immediately record the details of the claim or suit and the date received and (2) notify the insurer in writing as soon as practicable.
 
The named insured is required to (1) immediately forward to the insurer copies of any demands, notices, summonses, or other legal papers received in connection with the claim or suit; (2) authorize the insurer to obtain any legal records or other documents; (3) cooperate with the insurer in the investigation, settlement, or defense of the claim or suit; and (4) assist the insurer in any action against any third party that may be liable to the insured because of the injuries or damage for which claim is made.
 
Finally, the condition makes it clear that no insured may make voluntary payment, assume any obligation, or incur any expenses without the insurer’s consent. Any voluntary payments made by an insured or expenses incurred by an insured without the insurer’s consent must be paid by the insured.  Doing any of the above is putting you in a position of assuming fault, responsibility, liability, etc. It is not your job to do this. Let the insurance company handle it. The only exception is the expense incurred for first aid at the time of the occurrence.

The policy is very clear on this provision and it also states, if the insured does not comply with all of the requirements of this condition, the insurance company may be relieved of its duty to defend and pay claims. I suppose you can think of each claim as a crime scene, don't tamper with it. If you have any questions about this policy provision, or any other Business Insurance question, please feel free to contact me.
 
Jason Matison
Commercial Insurance Agent
Austin, Texas