~RESTAURANT HAZARDS~

No matter how careful you and your employees are, your business may still experience an unforeseen injury to a customer on your property, from a meal you prepared or possibly an employee who has imbibed a little too much. You may also experience a robbery. This section describes some common and not so common hazards found in restaurants which may cause your business a financial loss.

Consider each hazard and determine if you have reduced your potential to loss by implementing safe operating practices and providing appropriate training to your employees.

The principal hazard in most restaurants is fire. A restaurant fire has the potential of a total loss to the building and contents, significant business income loss, and injury or loss of life. Common causes of a restaurant fire include:

• Grease buildup leading to kitchen fires
• Inadequate or infrequent cleaning of hoods, ducts, filters, deep fat fryers and fans
• Absence of automatic and manual fuel cutoff valves
• Improperly extinguished cigarettes and candles
• Inadequate wiring or other electrical defects
• Overheated motors in refrigeration and air conditioning units

GENERAL LIABILITY

General Liability exposures include the potential for serious injury or death to large number of people on the premises in the event of a fire, as well as serious slip and fall injuries. Additional common hazards include:

• Stairways without adequate railings
• Change in elevation without a posted notice
• Defective or broken furniture
• Burns from hot plates or spilled beverages
• Cuts from broken glass or chipped dishware
• Inadequate or poorly marked/lit emergency exits
• Worn or torn floor coverings, foods and liquids spilled on floors
• Inadequate lighting on steps or in passageways Poorly maintained parking lot (inadequate
• lighting, potholes, debris), accumulation of ice and snow

PRODUCTS LIABILITY

Product liability losses are common in a restaurant environment. They are generally not serious, but frequency can become a problem if good food sanitation practices are not implemented and followed. Good controls are necessary to limit frequency and prevent a potentially severe loss. Some common exposures are:

• Foreign objects in food
• Food poisoning as a result of spoilage, contamination or deterioration of food
• Improper temperature in food storage facilities
• Expired shelf life on products
• Improper use of pest control and cleaning chemicals
• Inadequate supply of hot water for dishwashing Inadequate housekeeping practices

LIQUOR LIABILITY

Restaurants that serve alcohol must have appropriate controls in place to limit exposures to liquor liability claims. It encompasses that liability arising from the selling, serving, or distribution of alcoholic beverages. The extent of the restaurant operator's liability varies based on state laws. Contributing exposures are:

• Serving liquor to minors
• Serving liquor to intoxicated persons

CRIME EXPOSURES

Exposure to crime includes burglary, robbery and theft, including employee theft and dishonesty. Some contributing factors are:

• Large amounts of cash on premises
• Lax management attitude toward crime prevention
• Careless hiring practices or supervision
• High employee turnover and/or former employees with keys to the restaurant
• Careless accounting practices and checking account reconciliation

How to Deal With Drunk Customers

By Lorri Mealey, About.com

If you are planning on serving liquor at your new restaurant, than you should be familiar with all the laws and responsibilities that come with it. While liquor laws vary from state to state, in most cases if a person is involved in an accident while drunk you, as the owner of the establishment that served them, may be held liable as well.

The best way to avoid any potential lawsuits stemming from drunkenness is to not serve a customer who appears inebriated. Of course, some people can hold their liquor very well, and your staff may not realize the patron is drunk until it is too late. If you are faced with a customer who has had too much to drink, here are some tips for handling them:
• STOP serving them immediately. If the customer has wandered in from another bar or restaurant, you can refuse to serve them. They may claim you’re acting illegal, but your not. You are acting responsible.
• Offer the customer some coffee and some food, as an alternative to a drink.
• Call a cab or another ride home for the customer. Do not let them drive!
• If a customer becomes belligerent or angry, escort them outside of the restaurant and call the police, who can look after the customer, until he or she is safe and sober.

Remember, protecting your assests is the number one priority! You must make sure that every one of your employees understand the severity of this issue. Many establishments get sued every day in the results of over serving a patron. To most bartenders, a healthy tip is more important than saying "no". But the bottom line is that you need to protect yourself and your business!

A good idea would be to have an incodent report log for situations just to cover this area. Something with a description of what the customer was wearing, his actions, as well as the precautions your employees took.

I was at a small local place with a friend of mine this past Saturday evening and there was a fairly larger gentleman bellied up to the bar that looked to be extremely intoxicated. I motioned the bartender over and suggested he no longer serve this fellow, he sort of just nodded, but proceeded to pour this guy shot after shot. The guy was buying everybody drinks, leaving a large tip for every order. The next thing I know, his chair falls backwards into everybody else. He can't get up on his own strength and it takes two large employees to literally drag him out to the sidewalk. This could potentially be a big problem for the owner of this place if this gentleman hit his head or was to injure himself in any way...or worse, if he drove home. Over serving is a very important topic for you to cover with your employees, a topic that could save you a lot of hassle.

Foodborne Illness Complaints: Make Sure Your Staff Is Ready

By Bill Marvin, the Restaurant Doctor
Here are some suggestions from Bill Marvin, The Restaurant Doctor, about handling the most dreaded of all phone calls, one from an upset guest who has come down with symptoms they claim are the result of eating in your restaurant.

Because of the potential liability (and devastating publicity) that could result, it is very important that you have a well thought out and deliberate plan to respond to these types of complaints.
Here are a few initial steps that Bill suggests you take to resolve this type of complaint quickly and fairly:

1. Have a Foodborne Illness/Complaint Form ready. Have a form ready to gather information wherever a call of this type could be received. You do not want to ask an upset guest to wait while you hunt for a form, or trust your memory to make sure you get all the information you will need and you do not want to ask the caller to call someone else at another number.
2. Get the facts. The first thing is to find out the facts of the matter so you will be able to determine what actually happened. It is safest to assume the complainant has a valid claim and you will need every possible scrap of information to locate and eliminate the cause of the problem. You do not know if this is the first of many calls and you must be careful not to convey an attitude with your tone of voice.
3. Apologize for any upset the guest may be experiencing. You must be more precise when dealing with complaints of this sort but that does not mean you cannot also be compassionate. This is a human interaction with a person who was a guest in your restaurant and who is now experiencing a major upset for which you may (or may not) bear some responsibility. Do your best to stay neutral.
4. Don't argue or admit liability. You do not have to admit to anything in order to be empathetic. At this state, you are not trying to resolve the matter, only to collect the facts. Resist the urge to react to the complaint. This is often difficult as the complainant may be making statements that sound irrational to you or making demands that sound unreasonable.
5. Resist the temptation to admit that it was your entire fault and throw yourself on the mercy of the complainant. This posture can be tempting just because it will end the conflict but remember you are a detective at this point not a peacemaker and stick to your task.

When you receive a complaint claiming foodborne illness, it's important to first get the facts and document what was said. If you don't already have your own Foodborne Illness/Complaint Report form (devised by the National Restaurant Association), I will supply you with one that explains what to ask so that you have a permanent record of what the claimant said. Just email me at brianhanson@choiceinsurance.net and I will be sure to send you the PDF. Complaints that may carry some possible liability, such as incidents of foodborne illness, cannot be handled like a typical service complaint.

I will say it again - You do not want to ask an upset guest to wait while you hunt for a form, or trust your memory to make sure you get all the information you will need, and you certainly do not want to ask the caller to call someone else at another number. Actions such as these will likely be interpreted as stalling or lack of concern - they will only make the caller more anxious and upset.

This would be a good topic to discuss at your monthly safety meetings. In fact, discussing the following "Safe Food Handling - Clean: Washing Hands and Surfaces" would go along real well with the Foodborne Illness topic.

Safe Food Handling - Clean: Wash Hands and Surfaces Often
Bacteria can be spread throughout the kitchen and get onto hands, cutting boards, utensils, counter tops and food. To fight bacteria always:
-Wash your hands with warm water and soap for at least 20 seconds before and after handling food and after using the bathroom, changing diapers and handling pets.
-Wash your cutting boards, dishes, utensils, and counter tops with hot soapy water after preparing each food item and before you go on to the next food.
-Consider using paper towels to clean up kitchen surfaces. If you use clot towels wash them often in the hot cycle of your washing machine.
-Rinse fresh fruits and vegetables under running tape water including thos with skis and rinds that are not eaten.
-Rub firm-skin fruits and vegetables under running tap water or scrub with a clean vegetable brush while rinsing with running tap water.

Temporary Employee Liability: Is It Really YOUR Job To Provide Workers’ Compensation?

In most states, the issue of who is responsible for workers’ compensation coverage is addressed by common law. According to the “dual employer” doctrine, loaned, leased, or temporary workers are usually considered employees of both the labor service and the client company. If a worker is injured, workers’ compensation coverage can be provided by either party (the temporary service or the client company), depending on their contractual agreement in compliance with state law.1

Rising Use of Temporary Employees:
In today’s business environment of re-engineering, downsizing, and organizational change, the use of temporary employees is becoming quite common. Employers attempt to fill needs that result from staff shortages or peak seasons by hiring through temporary employment agencies. Employers also use temporary employees in an attempt to free themselves from the responsibility and costs of providing workers’ compensation and fringe benefits. However, depending on the jurisdiction, this is not always the case. Employers who fail to verify that the employment agencies have workers’ compensation coverage, or have it in adequate limits, can expose themselves to tort liability for the temporary employees under their supervision.

Who Provides Compensation for Temporary Employees?
Under exclusive remedy, both the client employer and the temporary agency are protected against tort action by the injured worker. In some states, an injured worker can sue beyond the benefits obtained from the workers’ compensation system. In these situations, specific indemnification clauses within the contract between the temporary agency and the client employer:
• Protect an employer from this risk; and
• Depend on the ability of the temporary agency to pay the indemnification.

In other states, client employers cannot escape the strict application of common law since they control the work environment and are held directly responsible for the safety of all workers under their control. One recourse in these states is for the client company to verify that the temporary agency has a temporary service contractor or alternate employer endorsement on its workers’ compensation policy. This allows the temporary agency to indemnify the client employer, through its workers’ compensation carrier, for any workplace injuries for which they are held liable.

Full Safety Training for Temporary Employees
The best possible way for every party to reduce the potential for worker’s compensation responsibility is to reduce the likelihood of workplace accidents. The temporary agency should inspect a potential client’s workplace to determine if their employees will be put at unusual risk. Similarly, the client employer should take “ownership” of temporary employees. Temporary employees should receive the same safety training as full-time workers. Supervisors should be made aware of the potential liabilities and the need to ensure the safety of temporary workers.
Organizations that use temporary employment agencies should realize they could share responsibility if a temporary employee is injured on the job. As part of sound risk management, they should also require their temporary agency to show proof of workers’ compensation coverage and general liability insurance.

David Stephenson, legislative analyst for the National Federation of Independent Business, said, “The onus should fall mostly on the temp agency to carry comp insurance for its workers, but the NFIB recommends all employers carry comp coverage, even those smaller ones exempted by state law.”2

Benefits vs. Cost
Retention, control and the right to hire and fire are considered significant indicators of employer status. When assessing if expense savings are being realized, it’s worth noting that temporary employment agencies adjust the hourly rate depending on job hazards — just as workers’ compensation rates are adjusted depending on the hazard code. Is the additional liability worth the perceived cost savings when using temporary employees? In the short term, the answer may be yes. Over the long term, it’s smart to analyze the true benefits and costs along with the potential for loss.

References:
1. Donald Elisburg, Attorney & Union Co-chairman, American
Bar Association’s Occupational Safety and Health Law Committee.
2. “Employers Need to Be More Cautious When Hiring Outside
Help, Experts Say.” BNA Workers’ Compensation Report, 5(22):
685-687, October 24, 1994.

Slips & Falls - How to operate a safe working envoronment

Even the best safety precautions can’t eliminate the risk. But you do reduce the likelihood of such a loss if you keep your premises in good condition. Develop written safety plans, communicate them to your employees and document training and enforcement of these policies because in the event of a loss, such documentation may keep you from being held liable. It’s your responsibility to create a safe working environment and preventing slips and falls will help keep your business in business.

Your business is growing and running smoothly, which is a GREAT feeling, and you want to keep it that way. However, an seemingly innocent, construction-related slip and fall can be devastating not only to the injured worker, customer or supplier but also to your business. According to the National Safety Council, slips, trips and falls are among the leading causes of accidental death in the United States and a slip and fall could shut down your business for good!

How do you help prevent such an accident?
It isn’t easy but it can be done. Use these basic tips to reduce workplace and job site slip and fall accidents:
• Create and maintain a formal safety program.
• Investigate ALL accidents to determine cause and conditions.
• Hold employees responsible for maintaining safe walk surfaces, housekeeping and proper material storage.
• Hold subcontractors responsible: communicate your safety policies and require Certificates of Insurance.
• Conduct periodic inspections to identify and correct unsafe conditions.
• Delegate responsibility to functional supervisors to improve conditions and loss frequency. Certain activities are more often connected with slip and fall accidents than others. Pay attention to Walking and Climbing.
• Identify surfaces likely to cause accidents: holes, elevations, slopes or slippery surfaces. Mark them clearly, add handrails and require non-slip soles on footwear.
• Post Guidelines
– When exiting equipment never jump down. Turn inward to face the equipment and climb down.
– Don’t obstruct your vision when carrying items. Use handcarts or other aids to distribute weight.

ABOUT ME: PERSONAL BIO

Yes, it's true, I have chosen to dedicate insurance career to the hospitality industry.  Maybe it's because I see that the industry is somewhat under served with regards to insurance, understanding that no two restaurants share the same exposures.  Maybe it's because I tend to relate to my clients on more than a professional level, inviting them to events and patroning their establishments with groups of people; I will always recommend a clients' place of business before anywhere else.  But realistically, I think it's because I have a special connection with the people that serve us our wonderful delectables and libations - after all, they should be treated and taken care of just as thorough and unique as us when we are in their care.

My goal as an Insurance Broker is to consult your specific needs and identify all possible exposures while maintaining a mutually beneficial relationship. I provide Enterprise Risk Management by following a specific outline and seeing it through to completion.
Some of the services and information included in the Risk Management process are as follows: HR Consultation, Hiring & Firing Practices, Employment Applications, Disciplinary Procedures, Employee Handbooks, Synergistic Business Operations and General Knowledge pertaining to Insurance Law.

We identify, assess and control your exposures, discuss the best finance options (inside or outside funds), control the frequency of losses and monitor it throughout the policy term.
The following lists a variety of services provided by companies I have forged strong relationships with: Fire Suppression Systems (UL300), Sprinkler Testing, Fire Extinguisher Recharge, Hood & Flu Cleaning, as well as Meat, Fish and Poultry Distribution. These companies take care of my clients very well.
I have built my business through trust, delivery, long term relationships and pride. There is no account too small nor too large.
Specialties
Restaurants - Chain / Franchise / Individual
Bars / Taverns / Entertainment Venues
Hotels / Motels
Distributors: Food / Beverage, etc.
Distilleries / Manufacturers
I am full of professional advice pertaining to Restaurant & Hotel Risks and would love to be of assistance to you in any way possible! If I cannot give you an exact answer immediately, I will track it down and get back to you just as soon as I can.

Thank you very much for spending time on my website and I hope that you find it to be extremely valuable to your business. If there is a subject that you would like to see me touch on, please either email me at brianhanson@choiceinsurance.net or feel free to leave a comment.