5 Top Lawsuits Against Restaurant Owners

Posted on: February 17, 2021 by RMS Hospitality

Restaurant owners face many hazards that make them vulnerable to legal claims. The large number of patrons frequenting these businesses and consuming alcohol increases potential liability issues. Kitchens contain dangerous equipment and tools, and employees may improperly handle food, creating a risk of illness. A comprehensive restaurant insurance program safeguards your clients against these risk types to mitigate financial losses.

1. Slip and Fall Lawsuits

These premises liability suits claiming personal injury due to the property owner’s negligence are common for restaurants. Many things contribute to the high incidence of these lawsuits within the industry. Some reasons your clients’ customers or employees may slip and sustain injury include:

  • Wet flooring: Restaurants often deal with food and drink spills, cooking oil drips, and leaking equipment. Frequent mopping also creates wet surfaces that can set the stage for mishaps.
  • Low lighting: Eateries typically have reduced lighting to create a pleasant and relaxing ambiance. This dimly lit atmosphere may make it difficult for patrons to see obstacles or hazards while navigating the space.
  • Uneven flooring:If a section of an interior floor or exterior walkway is not level, people may fall as a result.

2. Altercation Claims

Restaurants typically serve alcohol, which can lead to irrational behavior that results in disputes. Fights may occur between guests or between a staff member and a patron. Your client must train all staff members to know the steps for handling quarrels. Enforcing a hands-off policy, calling the police, and having a restaurant insurance program in place is the best way to reduce the owner’s liability.

3. Alcohol-Related Cases

Dram Shop laws govern injury claims stemming from people who purchase alcohol at a restaurant or bar, become inebriated and cause an accident resulting in injuries. Third-party claims happen when a drunk person causes damage to another individual. First-party cases arise when the plaintiff is the person who purchased and drank the liquor. Many states do not allow first-party claims unless the claimant is a minor.

4. Employment Practices Suits

Worker tasks in this industry depend on how busy the dining room is. Often, employees must stay longer than their scheduled shift to provide service when the restaurant is full. Some reasons for employment suits include:

  • Inconsistent paydays:Employees do not get paid as planned.
  • Lack of breaks: Workers do not have rest time during their shifts.
  • Low wages:Staff members do not receive at least minimum wage.
  • Unpaid overtime:Employees must work off the clock or do not receive adequate compensation for overtime hours.

5. Food Poisoning

Another common reason people bring lawsuits against restaurants is food poisoning or foreign matter in the food. Incidents of this nature may result in illness or possible death. Owners should have a restaurant insurance policy that shields against these kinds of claims. Most restaurants do a great job minimizing these risks, but mistakes happen, and your client needs adequate liability coverage to protect their business.

The right restaurant insurance program protects clients with liability coverages to safeguard their businesses from potentially devastating claims.

About RMS Hospitality Group

At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.

Posted in: Restaurant Insurance

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