Published On: August 24, 2021

Running a restaurant is hard work. There are menus to write and adjust, inventory to manage, and the business side of operations is a lot of paperwork and money management. A restaurant owner is always trying to balance costs with profits to make everything else work. One tip for restaurant owners to know is that lowering the insurance premiums for a business is not as hard as it seems. All it takes is a few updates.

Why Do an Update?

For companies who sell insurance for bars and nightclubs, the cost of doing business all comes down to weighing potential risks. There are small risks involved with every restaurant, like equipment breaking, accidental injuries on the premises, and lawsuits.

While some accidents cannot be avoided, others can. For example, if the building a restaurant is in is old, the insurance premiums may be higher because the building is not up to current code or there are potential structural issues.

When restaurants, bars, and nightclubs update their buildings, they fix problems and reduce the risk of others from showing up. By meeting certain standards, the restaurant insurance companies can lower premium costs for that location.

The Best Areas of Focus

The best way to improve a business is to start with the structure. From an insurance perspective, providing a sound structure is the basic need for any business. Many older buildings are grandfathered into codes since they were built with past requirements. Fixing up a restaurant so it is up to current code can be as simple as adding in more outlets, updating plumbing, or ensuring there is a security system on the premises.

Other areas that businesses can focus are in facility management and employee training. Here are some examples of each to consider.

Facility Management

  • Expand hallways and separate tables for more room to decrease accidents from happening.
  • Update bathrooms to include safety features like grab bars to prevent falls.
  • Add banisters and railing on stairs and walkways.
  • Stay on top of maintenance for equipment, breaks, and leaks to prevent making claims down the line once the problem becomes more expensive to fix.
  • Install a security system to protect from break ins and monitor suspicious activity.

There are some changes that can cost a lot of money, creating major construction jobs. These costs must be weighed against actual needs and those that are just cosmetic. Always prioritize the safety of employees and patrons.

Employee Training

  • Team members should quickly clean up spills to prevent falls and injuries on the premises.
  • Increase training to keep the kitchen and serving areas clean to improve health standards and reduce the risk of injuries to staff.
  • Use conflict resolution skills to handle customer service problems and diffuse a tense situation.
  • Teach how to handle drunk customers if you serve alcohol since they can become a liability, causing harm to self, others, and the restaurant. Know when and how to refuse service. This training is required by some states and liquor liability insurance companies.
  • Train on proper cleaning to keep facilities clean but also to prevent damage to the building.

Training employees in these situations specific to your business is the best way to protect your old restaurant. The basic idea behind employee training is safety and protection for the business. The less commercial property insurance claims you file, the more money you can save on restaurant and bar insurance premiums.

Always Ask Questions

If you need more ideas on how to help your specific site save money, ask the insurance company. Restaurant insurance programs can usually send you a list of things to fix yourself or you can have an official inspector come out and give ideas. By being proactive, you can help save some money by lowering your insurance premiums.

If you have any questions about lowering your insurance premiums, Tabak Insurance may be able to help. Contact us today for a free quote or to discuss how we can help lower your monthly payments with our customized insurance plans.

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