By: David DeLorenzo
As the year comes to a close and a new one begins, many bars and restaurants are in their high season. The combination of out-of-towners as well as families and friends gathering to celebrate the holidays can lead to a successful season for those in the hospitality industry. But it can also bring additional safety concerns for business owners. While the holidays are for celebrating and good times, they are no time to get lackadaisical on important safety protocols. Here are some tips and reminders to minimize loss control throughout the holiday hustle bustle:
Train employees properly — Your staff members are the gateway to your success. Many customers will chose an establishment for the customer service. So hiring friendly, welcoming staff is key. However, it’s also important that those employees not only know how to treat the customer, but that they are well-trained in the safety protocols of your business. This extends to interaction with the customer as well as safety protocols in the kitchen. Staff members should be highly trained on not only their area of service (bartender, server, cook, dishwasher and host, for example), but the entire restaurant’s. Ensuring this can help you run a tight ship — and keep everyone safe.
It’s highly researched and proven that people overconsume more during the holidays, with some sources stating December through March as the range in which alcohol consumption spikes. This is great for business if you are a bar and restaurant owner. However, it can also bring unwelcome consequences if you and your staff are not carefully abiding by the laws and maintaining your own protocols when it comes to serving alcohol.
Maintain camera footage — Having timestamped video footage can truly be a lifesaver in the case of an incident involving customers or staff. Think of video surveillance as a safety net for your business — one that you need to maintain. I highly recommended holding onto camera footage for longer than 30 days, even if you don’t think there was any incident during that time. This can be one of the most persuasive pieces of evidence in the case of a lawsuit and you won’t regret having it if that time ever comes.
Check IDs (and check them twice) — It’s better to be over cautious than under cautious, particularly at this time of year. Overserving is one thing, but overserving a minor is quite another. Make sure servers always check IDs and don’t be hesitant to have another staff member give it a look or ask for a secondary form of ID if there is any question about validity.
Security isn’t seasonal — Depending on the type of establishment you run, consider heightening security during holiday and high seasons. When overconsumption increases, this can lead to poor decisions and aggression. Having added security to support double-checking those IDs and for ensuring no one enters your establishment that has already been drinking in excess can help save your business. It’s also beneficial to hire someone that has a background or experience in security. This role requires brains and brawns.
The bottom line is that just one claim, at any time of the year, can result in a 50% to 100% increase in your insurance rate for the next year, at least. And for the most part, this is avoidable by taking these simple precautions.
Look Ahead to Set Yourself Up for Success in 2025
Stay on top of your premiums payments — As the holidays come to a close, it’s important that your businesses finances are kept up to date and that you’re making timely payments on your premiums. They are the bedrock of your coverage — not just to keep your policy active, but to ensure that when the unexpected happens, your policy stands strong, ready to protect your establishment. If you keep up to speed on your premiums payments you won’t have to worry about any gaps in coverage that could sneak up on you in the new year.
Have, and be able to access, documentation — It’s also important to make sure your documentation and certifications are in order (and easily accessible) in the event of an audit. It’s crucial to understand that audits are not just about numbers but about ensuring your coverage reflects your reality. This will safeguard your establishment against the unexpected.
Speaking of documentation and certifications, they are the tapestry of the hospitality industry and the shield of protection for your business. It’s not only important to have them but be able to access them when needed. When looking ahead to 2025, consider upgrading your organization systems. For example, you can invest in an app that allows you to consolidate your documentation and certification into one easily accessible format that you can get to at a moment’s notice. It’s not just about having the proper documentation and certifications, it’s about proving that you have them.
Work with a trusted specialist — End of year is a good time to review your policy, which should be done annually. When doing so, make sure you meet with an experienced specialist that is well-versed in the intricacies of your industry. At the end of the day, the rate is the rate. Unfortunately, this is the result of the amount of lawsuits that occur.
However, if you find a specialist who works with businesses in your industry, you’re paying for the expertise that they can bring when advising you on your policy. This is invaluable, especially if you ever do get into the unfortunate instance in which a claim is filed against you, a staff member or your company as a whole.
An experienced and knowledgeable insurance broker can review your current policy to ensure the documents are accurate and that they truly represent your coverage. They can also advise you on the importance of life insurance and buy-sell agreements. For many restaurateurs, these can seem like investments for the future. However, they are actually the lifelines of today, to make sure that your business not only survives, but thrives, even in the case of the unexpected.
Consider your broker your partner in your thriving business. They will help you through the good times and bad. More than simply selling you a policy, a trusted insurance partner will be able to provide you with peace of mind, assurance, and a shared vision for the future of your business.
So as you head into 2025, make a list — of the things you need to do in the new year to ensure the safety and protection of your business and your staff members — and check it twice.
Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona. For more information visit barandrestaurantinsurance.com.
