Category: Eating and Drinking Places


722511 Full-service restaurants and limited-service eating places

722512 Limited-service eating places

Description of Operations:

Pizzerias specialize in baking and serving pizzas. Other items may be included on the menu, but the driving force behind the restaurant is the pizza. Most offer pickup and delivery service as well as “eating in.” Some offer pizzas that the customer can pick up and bake at home. Some have arcade games to entertain customers while waiting for food. Some have a pizza buffet or salad bar. Alcohol may be part of the operation but is often limited to beer and wine.

  • Property exposures are from the cooking. Some pizzerias have only ovens and surface cooking while others may have grills or deep fat fryers. If the cooking exposure is limited to the ovens and non-grease- producing surface cooking, the fire exposure is viewed as a baking-only exposure. If a conveyer belt cooking method is used for the pizza and sandwich, cleanup is important to prevent buildup and potential fire from the grease and crust that is spilled. If there are grills or deep fat fryers, these must have automatic fire extinguishing protection, hoods and filters. There should be fuel shut-offs and adequate hand-held fire extinguishers. The kitchen must be kept clean and grease free to prevent the spread of fire. Spoilage exposure is very high. Power outages of even moderate duration can render fresh and frozen goods to be condemned as unfit for consumption or sale. Business income with extended time period coverage should be purchased by any pizzeria as clientele will switch after a major loss due to the lag time between the re-opening and the return to full operations.

  • Equipment breakdown exposures can be high as operations are dependent on refrigeration and cooking equipment.

  • Crime exposure comes from employee dishonesty and money and securities. Many customers pay in cash. Money should be removed from the cash drawer at regular intervals and deposited in an on- premises safe or at the bank throughout the day to prevent substantial accumulations of cash. If the restaurant sells cigarettes or provides alcohol, theft of stock could be a problem.

  • Inland marine exposures include computers for tracking inventories and valuable papers and records for employee and supplier records.

  • Occupiers’ Liability exposures are high due to public access to the premises. Customers move throughout the pizzeria with pizza and beverages, generating spills that can result in slips and falls. Spills must be cleaned up as they occur to prevent these losses. Temperatures of hot beverages must be limited to reduce injuries due to scalding. All employees must be instructed in proper customer handling, including how to deal with disgruntled or overly enthusiastic customers. Children can cause spills but also can burn themselves on hot food and beverages. Older patrons and those with mobility limitations are more prone to injury should a fall occur. Procedures should be in place to assist these customers in choosing and transporting food to their table if there is a buffet or salad bar. Lists of ingredients should be posted to prevent allergic reactions. Food contamination is a concern as displayed food is accessible to all customers on a buffet or salad bar. Sneeze guards must be present and the food should be monitored to ensure that foreign objects or substances have not been added. There should be a rotation process and a maximum time that food can be kept out. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slips and falls. Outdoor security and lighting must be consistent with the area.

  • Products liability exposure is from food poisoning, contamination, and allergic reactions from food carried off premises for consumption.

  • Liquor liability exposure is usually minor at a pizzeria due to the large amount of food and the family atmosphere. If beer and wine are served, any failure to comply with provincial and federal regulations can result in the loss of a liquor permit. The popularity of pizzerias around university campuses can lead to underage drinking. There must be a set procedure to check ages of anyone attempting to purchase alcohol, as well as monitoring so customers purchasing alcoholic beverages do not then give them to patrons who are underage or intoxicated. A refuse-to-serve procedure must be in place and managers must assist in following those procedures.

  • Automobile exposures can be very high when “on demand” delivery is provided due to the high turnover and youthful ages of employees. All drivers must have MVRs and should be drug tested. The MVRs should be updated on a regular basis. Guaranteed delivery times encourage reckless behavior and should not be permitted. Company vehicles should be used for all deliveries in order to monitor maintenance of the vehicles. If employees use their own vehicles, the vehicles should be checked for maintenance and upkeep. Because most personal auto policies do not provide coverage when the vehicle is used for commercial purposes, requiring proof of insurance will be of little assistance.

  • Workers compensation exposures come from slips, falls, cuts, burns, heavy and awkward lifting, and interaction with customers. As with all retail businesses, hold-ups are possible so employees should be trained to respond in a prescribed manner. The employees tend to be minimum wage and turnover may be high. Company incentives to encourage long-term employment are positive signs of management control. Well-trained employees with an incentive to do their best will have the fewest injuries. Delivery drivers are subject to both driving hazards and possible hold ups. Drivers should carry minimal amounts of cash. All delivery addresses should be confirmed before sending the driver. A procedure must be in place to check for driver if he or she does not return within a reasonable amount of time.

Minimum recommended Insurance coverage for Pizzerias:

Business Personal Property, Business Income and Extra Expense, Spoilage, Equipment Breakdown, Employee Dishonesty, Money and Securities, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Automobile Liability and Physical Damage, Hired and Non-owned Auto, Workers Compensation

Other Insurance coverage to consider for Pizzerias:

Building, Accounts Receivable, Computers, Cyber liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Stop Gap Liability