Restaurant Operation & "Host Liquor" Liabilities

Ownership and operation of a restaurant carries with it “special” exposures to risk of loss, particularly in the field of third party liability.

Restaurateurs know and accept the “responsibilities” they are assuming in hosting members of the public and serving them.  The legal responsibilities thus change the onus of liability to rest firmly on the restaurant operator.

This “presumption” of liability applies principally to two key areas, both the operation of the premises and to the dispensing of food and drink.

Premises Exposure

In regard to the premises itself, it is a requirement for the operator to create and maintain a safe, harm-free environment. ‘Slip and fall’ type claims are on the rise, both in frequency and costs.

As an example, the clearing of ice & snow is a commonly overlooked area and is as much the legal responsibility of the restaurant operator as it is a building owner. While your lease might say it is the job of the landlord to clear the snow, legally, your both typically ‘on the hook’ in the event of a claim.

Inside, handrails on stairways with more then 3 steps, spill clean up, loose carpeting and other trip hazards, poor lighting and hot food/beverage serving are amongst some of the multitude of things to keep in mind.

Host Liquor Exposure

In those establishments where liquor is dispensed, even more stringent responsibilities are imposed on restaurateurs by “Host liquor” laws, with even more legalities.

Courses like Smart Serve & SIPs are mandatory requirements of course, but beyond that, having  procedures for offering alternate methods of transportation and maintaining a detailed log of activities when incidents do happen at the time for example, are good Due Diligence and Risk Management. These can be excellent cornerstones of a solid defense in the event of a claim.