Sponsored by Restaurant Technologies
Among the many responsibilities of restaurant owners, managing risk is one of the most crucial, as ensuring a safe environment for employees and customers not only reduces the likelihood of accidents but also results in significant cost savings. Insurance companies calculate premiums based on the level of risk a business presents, meaning the greater the potential for hazards or incidents, the higher the insurance costs. While some factors may be beyond your control, taking proactive steps in four key areas can demonstrate lower risk to insurers, potentially leading to reduced premiums.
1. Employee Safety
Employee safety should be a top priority for all restaurant managers and business owners. Basic safety measures, such as non-slip mats and protective gloves, are essential, but more advanced systems can further reduce risks. Restaurant Technologies offers a fully automated oil solution that eliminates the need for employees to handle hot oil, preventing spills and reducing the risk of burns, injuries, and falls. Creating a safer work environment protects employees and helps reduce workers' compensation claims, a major factor in driving up insurance costs.
“A fully enclosed system that takes a physical and mental burden off our employees and can deliver savings by improving control over your cooking oil was a no-brainer for our restaurants,” explained Mike Dole, Director of Operations for Trinity Corp., a Burger King franchisee with seven locations in Kentucky. “With the implementation of the Total Oil Management system, we’ve seen marked improvements in employee safety. We have no workers’ comp claims.”
Fewer claims lead to lower premiums, making safety systems like those from Restaurant Technologies a smart investment. When you could be one accident away from a $750,000 claim, every preventative measure counts. By keeping your insurer informed about the safety initiatives you’ve implemented, you further demonstrate your commitment to reducing risks, which can result in more favorable insurance terms.
2. Customer Safety
Slips, trips, and falls are among the most common accidents in restaurants, often caused by wet floors, broken furniture, or poorly lit areas. Even something as small as a misplaced rug or an ice cube on the floor can lead to significant injuries and lawsuits. To minimize these risks, regularly inspect and maintain the dining area. Placing proper signage for wet floors, ensuring that pathways are clear, and promptly addressing maintenance issues are keys to preventing accidents. It's essential to keep your insurance agent informed about the safety measures you've implemented. This information can help them build a case for your business being lower-risk and potentially lead to reduced premiums.
3. Food Safety
Food safety is a top concern in any restaurant. Foodborne illnesses not only endanger customers but can also result in lawsuits and increased insurance claims. By implementing strict food handling and hygiene protocols, restaurants can minimize the risk of contamination and illness. Essential safety measures include regular employee training, maintaining clean kitchen areas, and using proper food storage practices. Sharing these procedures with your insurance agent builds trust.
4. Fire Safety
Fire is a significant risk in any restaurant, and insurers closely examine fire prevention efforts. Over 64% of restaurant fires start in the kitchen. Installing fire suppression systems, maintaining kitchen appliances, and providing fire safety training are critical to mitigate risk. However, proactive fire prevention is key. The AutoMist system from Restaurant Technologies automatically cleans the hoods and flues daily, reducing grease buildup and significantly lowering the risk of fires. Insurance companies take fire safety seriously, and by reducing fire risks, restaurants can often secure lower premiums.
The Financial Impact of Lowering Insurance Premiums
Lowering insurance premiums can have a direct impact on a restaurant’s bottom line, as insurance costs are a significant part of operating expenses, and high premiums can quickly eat into profit margins. Restaurant Technologies customers can save up to 15% on insurance, and for multi-location franchises, that could be over $100,000 a year.
Prioritizing safety and risk management is an investment in the long-term success and profitability of the business, as insurance companies value working with businesses that demonstrate a proactive approach. This commitment to safety can help restaurant owners negotiate better coverage terms, more favorable rates, and ultimately lower premiums, all of which contribute to a healthier financial future.
