Insurance Blog | Wadsworth | The O'Neill Group

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Mar 01, 2019

Top Benefits of Crime Insurance for Restaurants in Ohio

Restaurants, of all industries, are particularly vulnerable to robbery, burglary and theft. As restaurants typically accumulate a large amount of cash each day, it makes them attractive targets to criminal activity.

A criminal also looks for establishments with late-night hours and easy entry or escape.

If you own or operate a restaurant, you need to be prepared to deal with restaurant crime. That’s why it’s important for you to prepare now so that, in the event that the unexpected happens, you have the proper procedures in place to react calmly and quickly.

Here’s a few ways to discourage criminals from attempting their crime:

  • Greet and make eye contact with every person that enters.

  • If you suspect suspicious behavior in any area, courteously ask the person if they need assistance.

  • Always show that you’re alert and aware of all customer activity by actively moving around the area.

  • During daily operations, cash registers should be inspected regularly to prevent cash buildup above the minimum amount needed.

  • The rear door leading to the trash or waste containers should never be propped open. Always keep back doors locked.

  • Be aware of and report any strange behavior to your shift manager, such as someone loitering on the premises.

  • If you witness someone attempting to steal something, do not run after the person or try to intervene. Attacking the person could mean harm to you.

  • In the event of a robbery, do as the intruder commands. Speak slowly and calmly to intruders, and don’t make sudden or unexpected moves.

  • Study the suspect carefully, noting facial features, height, clothing, etc.

  • Do not follow the thief outside. The possibility of causing harm to innocent bystanders escalates in this situation.

  • Call the police and notify your manager of the situation as soon as possible.

  • If an intruder threatens you, comply with all of his or her demands. Your well-being is much more important than those that might lose.

  • The phone numbers of local authorities are listed near all phones on the premises for quick access.

  • Call the police as soon as possible, preserving any evidence left at the scene by the suspects, such as robbery note, objects handled, etc.

In addition to the above tips, you may want to consider adding a crime insurance policy to your risk management program.

As indicated above, no business is immune to the threat of crime and fraud. In fact, the ASsociation of Certified Fraud Examiners estimates that a business can expect to lose 5 percent of its revenue to fraud each year.

Thankfully, restaurants like yours can turn to crime insurance.

Here’s the top benefits of crime insurance for your restaurant:

  • Coverage for misuse funds. If your hostess or waitresses have access to any financial information about your restaurant, they may abuse this access for personal gain. Crime insurance can protect your restaurant from the misuse or illegal transfer of funds, ensuring your finances are safe from internal criminal acts.

  • Extortion safeguards. While it can be difficult to imagine, employees and outside actors can extort your restaurant for funds by holding you hostage or through other illegal methods. Without crime insurance, your restaurant may have no means to recoup these losses, which would devastate your bottom line.

  • Reimbursement for computer fraud. Computers and emerging technologies have made it easier than ever for your staff to carry out crimes against their employers. Crime insurance can provide a crucial layer of protection for any money or securities lost via computer fraud, which is an important piece to an effective cyber risk management program.

  • Insurance for goods in transit. Good in transit are particularly vulnerable to employee theft and, in some cases, restaurants may not notice anything has been stolen until its too late. What’s more, if the theft takes place outside of your restaurant, it can be difficult to prove, often leading to drawn out expensive legal battles. Crime insurance policies can provide ample protection for goods in transit and reduce the likelihood of extreme losses whenever you send or receive products.

  • Coverage for forgery and alteration. In some cases, your staff have access to checks that they can easily alter for their own gain. Effective crime insurance policies provide coverage for losses that result from the forgery or alteration of a check.

Interested in learning more about Crime Insurance for your Restaurant?

Even if your restaurant takes the necessary precautions, you could still end up victim to crime. Crime insurance may be a critical component to your restaurant insurance program. To discuss your unique risks and learn more about crime insurance policies, contact me today.

My name is Pat O’Neill and I’m a Risk Advisor here at O’Neill Insurance, a risk management and insurance firm in Wadsworth, Ohio. I’d love the opportunity to discuss ways to mitigate risk at your restaurant, all while while aiming to reduce your restaurant insurance premium. Call me at (330) 331-7960 or email me at ptoneill@oneillinsurance.com. I look forward to hearing from you!

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Components of this article were adapted from Zywave. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.