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Product Liability Insurance: Is Your Restaurant Covered?

by Breeze Underwriting on March 4, 2015 No comments

Last week, Soul Origin Café in the Sydney CBD hit the headlines after four customers contracted scombroid food poisoning from tuna served on the premises. This particular form of food poisoning is potentially life threatening, and although the café is not believed to be responsible for the contamination, they can be held accountable for the consequences.

Under Australian law, any goods sold by a company must be free from safety defects. All restaurant owners have a responsibility to third parties including customers, employees, suppliers and the community, which in this case Soul Origin Café did not fulfil. As a result, the Café may be facing a financially difficult time ahead. With an amount of bad press, customers lose confidence in their food and are likely to avoid the café for the foreseeable future. However this could be the least of the Café’s worries, as the restaurant may be subject to legal action taken by those it infected.

This case demonstrates the importance of having comprehensive restaurant insurance cover that includes Product Liability.   Product Liability insurance protects against claims of personal injury or property damage caused by products sold or supplied through your client’s business. Designed for professionals who supply products to customers or members of the public, it will cover legal costs and compensation that arise as a result of your client’s defective product.

It’s important that your client is aware of Product Liability and that their insurance policy fully protects them in the event that a food or beverage they supply does cause harm. Understanding the unique risks of businesses operating within the Restaurant sector, our expert underwriters are best placed to advise you on covering your client’s business to ensure maximum protection.

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Breeze UnderwritingProduct Liability Insurance: Is Your Restaurant Covered?

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