And How to Avoid Filing One

Running a restaurant means managing a lot of moving parts — and a lot of potential risk. While insurance is there to protect you when something goes wrong, every claim still comes with disruption, deductibles, and possible impact on future premiums. The more you can prevent, the better.

In this blog, we’ll take a look at some of the most common restaurant insurance claims and practical steps you can take to reduce the chances of filing one.

1. Slip-and-Fall Injuries

Why they happen

Slip-and-fall incidents are among the most frequent claims in restaurants. Spills, greasy floors, tracked‑in water, and cluttered walkways all create opportunities for guests or staff to get hurt.

How to reduce your risk

  • Create clear floor-cleaning procedures
  • Immediate clean-up for spills, with “wet floor” signage used every time
  • Scheduled checks of high-traffic areas (entries, restrooms, drink stations, server alleys)
  • Use the right floor materials and mats
  • Non‑slip mats at entrances, host stands, and bar/service areas
  • Properly secured mats that don’t curl or slide
  • Keep walkways clear
  • No boxes, racks, or trays stored where guests or staff walk
  • Cords and hoses routed away from foot traffic
  • Train and document
  • Train staff to treat spill response as urgent, not optional
  • Keep simple logs or checklists to show regular floor checks and clean-ups

2. Cuts, Burns, and Back-of-House Injuries

Why they happen

Busy kitchens, sharp tools, hot surfaces, and repetitive lifting make employee injuries a common source of workers’ compensation claims.

How to reduce your risk

  • Standardize safety training
  • Knife handling, slicer use, and proper cutting techniques
  • Safe handling of hot pans, fryer baskets, and oven racks
  • Clear rules about appropriate footwear and clothing
  • Provide the right gear
  • Cut‑resistant gloves where appropriate
  • Oven mitts, dry towels, and tools designed for hot surfaces
  • Focus on ergonomics and lifting
  • Teach safe lifting for heavy items and bulk ingredients
  • Use carts and dollies where possible instead of manual carrying
  • Reinforce and refresh
  • Short, regular safety reminders during pre‑shift meetings
  • Quick refreshers for new equipment or menu changes that alter workflow

3. Kitchen Fires and Heat-Related Damage

Why they happen

High heat, open flames, hot oil, and heavy daily use mean even well‑run kitchens carry fire risk. Unclean hoods, unattended cooking, and poorly maintained equipment are common contributing factors.

How to reduce your risk

  • Maintain hood and suppression systems
  • Stick to regular professional hood and duct cleaning schedules
  • Confirm automatic fire suppression systems are inspected and tagged on time
  • Make sure staff know how and when to manually activate systems
  • Establish strict fryer and grill procedures
  • No leaving hot oil or open flames unattended
  • Clear rules for handling grease, including proper storage and disposal
  • Regular cleaning of fryers, grills, and grease catch pans
  • Keep extinguishers accessible and staff trained
  • Properly rated extinguishers in the right locations (especially Class K for kitchen areas)
  • Simple training on when and how to use them — and when to evacuate instead
  • Document your efforts
  • Keep records of service, inspections, and cleaning; documentation can support you if a claim is ever filed

4. Foodborne Illness and Contamination Claims

Why they happen

Incorrect holding temperatures, cross-contamination, and poor handwashing can lead to guests getting sick. Even one incident can have a major impact on reputation and liability.

How to reduce your risk

  • Commit to food safety training
  • Require key staff to maintain ServSafe or equivalent certifications
  • Train all team members on time and temperature control, cross‑contamination, and allergen awareness
  • Use systems, not guesswork
  • Temperature logs for coolers, freezers, and hot‑holding equipment
  • Clear date labeling and rotation (FIFO) for all stored items
  • Written policies for excluding sick employees from food handling
  • Manage allergens carefully
  • Clear procedures for handling allergen‑free orders
  • Separate storage and utensils when possible
  • Training on what staff can and cannot promise guests
  • Be proactive if an issue occurs
  • Take guest complaints about illness seriously
  • Document details, gather information, and notify your insurance representative if warranted

5. Property Damage from Equipment Failures

Why they happen

Refrigeration failures, burst pipes, and equipment breakdowns can lead to water damage, spoiled inventory, and unexpected closures — often resulting in property and business interruption claims.

How to reduce your risk

  • Stay on top of maintenance
  • Schedule regular service for refrigeration, HVAC, and key kitchen equipment
  • Address small issues (noises, temperature fluctuations, minor leaks) before they become major
  • Monitor temperatures and conditions
  • Use thermometers and, if possible, digital monitoring for walk‑ins and freezers
  • Inspect under and around equipment for signs of leaks or moisture
  • Know what’s covered
  • Understand the difference between property coverage, equipment breakdown, and spoilage coverage
  • Confirm limits for food spoilage and business interruption align with your actual risk

6. Liquor-Related Incidents and Assault/Battery

Why they happen

Anytime alcohol is involved, your risk profile changes. Overservice, fights, and alcohol-involved accidents can lead to sizable claims and complex liability questions.

How to reduce your risk

  • Train staff on responsible service
  • Use formal alcohol service training where required or recommended
  • Teach staff how to identify impaired guests and when to say “no”
  • Set and enforce clear policies
  • House rules for last call, serving limits, and checking IDs
  • Written procedures for handling conflicts and calling security or law enforcement when needed
  • Review your coverage
  • Confirm you carry liquor liability coverage in addition to general liability
  • Review whether assault and battery incidents are covered, limited, or excluded

7. Employment-Related Claims

Why they happen

Even restaurants with strong cultures and good intentions can face claims related to hiring, firing, discrimination, harassment, or wage-and-hour disputes.

How to reduce your risk

  • Create and follow written policies
  • Employee handbooks that cover conduct, reporting, and anti-harassment expectations
  • Clear documentation for hiring, performance reviews, and disciplinary actions
  • Train managers, not just staff
  • Education on appropriate workplace behavior and how to handle complaints
  • Guidance on what should be escalated to ownership or HR-level support
  • Consider Employment Practices Liability (EPLI)
  • Review whether your current program includes EPLI
  • Understand limits, deductibles, and what types of claims it responds to

Turning Risk Awareness into Fewer Claims

You can’t remove every risk from restaurant operations — but you can significantly reduce the likelihood and impact of the most common claims with a few consistent habits:

  • Regular training and refreshers, not just one-time orientations
  • Simple checklists and logs for safety, cleaning, and maintenance
  • Clear policies that everyone understands and follows
  • Open communication with your insurance professional about changes in your operation

When your team knows what to watch for, and your coverage is built around your real‑world risks, you’re in a stronger position to prevent claims — and to weather them when something does go wrong.

If you’d like to review which of these claim types pose the biggest risk for your specific restaurant and how your current insurance program would respond, reach out today.