Moving to Delivery & Take-out Can Increase Your Workers Comp Exposure
A seismic shift has hit the restaurant industry due to COVID-19 . On March 18th, the National Restaurant Association reported that industry sales will decline by $225 billion over the next three months, which may prompt the loss of between five and seven million jobs. At least 28 states have closed dine-in options for restaurants so far, with more expected as the virus spreads.
The pandemic stranglehold on restaurants have forced many owners to temporarily transition to a delivery-only model, which has a huge impact on day-to-day restaurant operations and risk exposures.
This shift requires more manpower for many restaurants to be able to make deliveries. Business Insider reports that Domino’s, Pizza Hut and Papa John’s have already hired over 50,000 new employees in the last week to fulfill the need for food delivery in the era of social distancing.
Restaurants are now determining whether to change their existing menu, whether their point-of-sale systems can be modified accordingly and most importantly, whether their current Workers’ Compensation policy covers employees now making deliveries.
When an employee leaves a brick-and-mortar restaurant to deliver food to a private residence, he/she is exposed to an additional number of hazards such as vehicle accidents, slip and fall injuries, animal bites and overexertion. Equally as important, the current carrier may not accept the new driving exposure and therefore can cancel the policy, non-renew, or significantly increase the premium.
World Events Specialty provides comprehensive coverage to the restaurant industry. With our Workers’ Compensation Specialty insurance program, we’re able to assist the industry by providing protection to a restaurant’s greatest commodity, its employees. Our WC Specialty program provides comprehensive Workers' Comp coverage with an A.M. Best “A” rated admitted carrier, coverage for delivery employees, and flexible pay options. Most importantly, with a change to a delivery-only model, owners will have peace-of-mind that their employees have the protection they need from a trusted partner. Connect with our team of dedicated WC Specialists today to learn more about how World Events Specialty can help provide valuable coverage for the restaurant industry.
World Events General Agency
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