The Insurance Federation of Egypt (IFE) said that its property technical committee is currently preparing an insurance policy for restaurants in line with international practices and in light of the high losses that restaurants face due to the nature of their operations.
In its weekly bulletin issued over the weekend, the IFE pointed out the risks that restaurants are exposed to, reported Amwal Alghad. The risks included fire, physical injury to customers, burglary, civil liability, theft, glass breakage, damage to equipment, machinery breakdown, business interruption and loss of profits, a customer becoming ill due to the food served in the restaurant, spoilage of goods in cold stores, a disaster that destroys restaurant equipment or damage to property, in addition to damage to buildings, whether owned or rented.
Therefore, restaurant owners need to protect their businesses through comprehensive insurance coverage.
The draft insurance policy, when ready, will be submitted to the Financial Regulatory Authority (FRA) for approval before it is disseminated to insurance companies.
The IFE noted that in some countries, there is a standard comprehensive insurance policy for restaurants instead of several different types of policies.