8 Essential Issues Every Texas Restaurateur Must Address

You've seen it. Restaurants fail all the time for a lot of reasons. There is enough risk in business without needless risk. This report describes nagging trends in our industry that have solutions. If you aren't 110% sure about the protection that your insurance program provides and the coverage you must have to survive in today's business climate ...find out NOW before you find yourself locking the doors for the last time. Get solid answers. We can help.

Essential Issue #1 – Real Workers Comp or an "Alternate." Texas is just plain different. No other state allows a business to drop out of the Workers Comp system but here, most restaurants do. Since employee injuries are the number #1 most common insurable loss in a restaurant it's an issue you have to address effectively. In Texas, by law you must decide what you are going to do about workplace injuries. Each option has a number of legal ramifications for both you and your employees. You can:

1)	Buy "real" Workers Compensation and be a part of the "system" where your employees receive the benefits that are prescribed by the State (but the premium isn't cheap), or
2)	Formally reject the protection of the Workers Comp Act by filing as a "non-subscriber" - then most business owners buy another kind of insurance. People call it different things, an "alternate" to workers comp or "occupational accident" insurance. Those kinds of policies are not standardized like "real" Workers Comp. They vary drastically in price and coverage from one company to the next and they usually involve compliance with other federal and legal programs like ERISA (Federal laws governing employee benefits) and binding arbitration. (Warning – most agents don't do very much of this coverage so they don't do it very well. Frankly, there are some really lousy policies out there.) Good options with a million dollar limit can be 1/3 the price of "real" Workers Comp.
3)	Not deciding and not filing is like tap dancing on a land mine - a legal combination of the worst of the first 2. If your employees can maintain that you didn't follow the required process to notify them about not being a part of the Workers Comp system, you could owe them generous Workers Comp benefits without having a policy to pay for it (think unlimited medical and years of lost income). There's more than one good answer. Understand the options.

Essential Issue #2 - Hiring illegal immigrants

The lure of hiring illegal workers is dangerous territory. With social security cards for sale on street corners these days it is often hard to tell if you have hired an illegal! Not only are you subject to raids by the INS and the damaging publicity, you may be subject to massive fines. A 1997 bust resulted in a $1.75 million fine against a Houston food chain. Is this covered by insurance? What about an employee injury and resulting lawsuit from an illegal? Most "alternate" workers comp policies provide NO coverage, even if you didn’t realize your employee was illegal! Contact us for the answers.

Essential Issue #3 – Discrimination

The allegation of discrimination contradicts the very notion of hospitality, whether it is from your customers or your employees. But with shocking court decisions breathing down our necks and the raging, out of control cost of defense costs, you can and must properly protect your livelihood and your family's future – your business. Find out how.

Essential Issue #4 – Unsafe working conditions

Restaurant owners (thankfully) don't often think like insurance underwriters who are often scared of their own shadow. On the other hand, Owners often take for granted the risk they absorb on a daily basis …armed robbery, rampage killings, slips and falls just to name a few. What about slick floors, boiling kettles, open flames, sharp knives, short-tempered customers, stressed employees? Is every one of these startling realities covered under your current insurance program? InsuranceChef safety checklists for your managers are a helpful tool to keep things under control. It'’s a free service for our customers. Call today for a FREE insider checkup.

Essential Issue #5 - Overserving alcohol

Drive Drink sales. You've got to know when to say "last call" and don't ever assume that you don't need liquor liability protection. Think about the guy who comes into your restaurant one night and has a drink or two. You may not have been his first stop. Seems like a pretty nice guy.... Well, he leaves and gets behind the wheel. You know the story…he hits another car and kills somebody. He probably didn't have a lot of auto insurance, but even if he did, the plaintiff attorney will be looking to cash-in wherever he can. You are going to get sued. If you don't have top-notch liquor legal liability, you could lose everything you have worked for over this one. Don't risk it.....find out if you have quality coverage today.

Essential Issue #6 - Serving unsafe food

Fight food Borne illness and maintain a healthy business. Hepatitis A, E. Coli, salmonella… all perilous dangers that lurk in your kitchen every day. Only you can prevent this through safety education. But what if one of those risky employee behaviors results in your getting sued? What if your restaurant is shut down? Who pays for loss of income? The answers are as close as your phone.

Essential Issue #7 - Sexual harassment

Surely, one of your managers would never flirt with the staff… The waitress would never get the wrong idea or take offense! She would know that the relationship had nothing to do with work! Oh yea? There's an old saying "it's not if you'll get sued, it's when you'll get sued. In today's society, skin and lawsuits are both prevalent and all too often they go hand in hand. Who is paying for all this? Business owners. And you'll be paying for it the hard way if you don't have first rate EPL coverage (Employment Practices Liability Insurance). Email us now for more info at– service@InsuranceChef.com.

Essential Issue #8 - Employee theft

Internal theft cost the foodservice industry up to $6 billion annually… and you think you have it bad? The retail industry lost $15.1 billion from employee theft in 2002. Good controls and theft protection is "key" to locking down profits in your operation. You can and must protect yourself. It's really pretty simple. Ask us how.

Running your business is more than a full time job. You don’t have the time to keep up with every new law or trend in the insurance industry. Be a smart consumer. Protection for you and your business requires constant vigilance....and a partnership between you and a professional agent that knows your business. For the latest information on how to save money AND get the best protection for yourself and the people you care most about contact us.


Sincerely,

Kent Hagood, CIC, CRM
Certified Insurance Counselor, Certified and Licensed Risk Manager


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