Reevaluating Insurance: Vital for Restaurant Operators

Florida Food Handler Certificates

Reevaluating Insurance: Vital for Restaurant Operators

In the whirlwind of daily restaurant operations, it’s easy for restaurant operators to overlook a critical aspect of their business: liability and insurance. A survey by Aon and CoverWallet found operators need better risk management. In this article, we’ll delve into the survey’s findings and explore why restaurant operators should pay closer attention to liability and insurance.


The Knowledge Gap

The survey of 250 independent restaurant operators paints a concerning picture. More than half (56%) of these operators need a comprehensive understanding of the risks and liabilities inherent in their businesses. These risks encompass a wide range of concerns, from safety hazards to cyber threats and various liabilities that can arise from serving alcohol.


The Cost of Ignorance

Randy Storm, Director of Sales and Account Management for CoverWallet highlights a common misconception among restaurant owners. Many believe insurance coverage costs are prohibitively high, leading them to forgo essential protection. However, Storm stresses that the cost of not having coverage can be significantly higher when faced with an unforeseen incident.


Critical Insurance Coverage

Two fundamental types of insurance coverage that every restaurant operator should consider are workers’ compensation insurance and cyber liability insurance. Shockingly, the survey reveals that 115 out of the 250 operators surveyed did not have workers’ compensation insurance, even though it is mandatory in most states.


Workers’ Compensation Insurance: A Legal and Practical Necessity

Storm emphasizes the potential risks associated with not having workers’ compensation insurance. Fines, stop-work orders, and rising medical costs all underscore the importance of this coverage. It ensures compliance with the law and protects employees and the business.


Cyber Liability Insurance: Protecting Against Digital Threats

Cyber liability insurance is becoming indispensable in an era of increasing data breaches and cyberattacks. Surprisingly, the survey found that 218 out of the 250 operators surveyed did not have cybersecurity insurance. Storm highlights the significance of this coverage in an age where digital threats are ever-present.


Navigating Liability and Insurance

To ensure adequate protection and compliance, restaurant operators should work closely with insurance professionals, such as agents or brokers. These experts can help tailor insurance coverage to the specific needs of their businesses. Furthermore, conducting risk assessments whenever changes in the industry, such as altering the number of employees, is essential to maintaining compliance with workers’ compensation requirements.



In a constantly evolving and challenging restaurant industry, where risks can take various forms, from workplace injuries to cyber threats, liability, and insurance coverage should be a top priority. Restaurant operators must make informed decisions to protect their businesses, employees, and financial well-being. Partnering with insurance professionals and staying updated on evolving risks is essential in navigating the complex world of liability and insurance. Failure to do so could expose restaurants to unnecessary financial and legal vulnerabilities, jeopardizing their long-term success in an already competitive industry. It’s time for restaurant operators to rethink their approach to liability and insurance for their own sake and the well-being of their businesses.


Florida Food Handler Certificates

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***Please note that the insightful and engaging content provided on our platform is crafted by our dedicated Marketing Department’s content writing team. While Ken Kuscher is the esteemed figure and expert within our industry, the articles and blog posts available are not personally authored by Ken.

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