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Draft a business letter, using today's date, from Phoenix Risk Management Ltd to Ricardo's Burgers Ltd, a fast food retailer - Leaving Cert Business - Question 8 - 2018
Question 8
Draft a business letter, using today's date, from Phoenix Risk Management Ltd to Ricardo's Burgers Ltd, a fast food retailer. In your letter identify the main types ... show full transcript
Worked Solution & Example Answer:Draft a business letter, using today's date, from Phoenix Risk Management Ltd to Ricardo's Burgers Ltd, a fast food retailer - Leaving Cert Business - Question 8 - 2018
Step 1
Draft a business letter
Answer
Phoenix Risk Management Ltd
Main Street, Athlone, County Westmeath
14th June 2023
Ricardo's Burgers Ltd
O'Connell Ave
Dublin
Dear Sir/Madam,
Re: Risk Management and Types of Insurance Cover
Further to your enquiry, I have identified the following insurance policies you should consider and recommend a number of risk management approaches:
Employers Liability
This protects the business against claims made by employees who are injured in the course of their work. It is important to ensure all employees are trained in the use of cooking equipment to mitigate risks.
Public Liability
This protects the business against claims made by members of the public who are injured while on the premises, such as slip-and-fall injuries. You should implement appropriate warning signs when floors are wet to avoid any injuries.
Product Liability
This insurance covers claims made by customers relating to the products you sell, such as food poisoning claims. It's crucial to ensure that all foods are cooked properly, and to regularly check sell-by dates on stock. Consider having a standby generator to maintain proper food conditions during power outages.
Buildings and Contents
This provides protection against any loss caused by damage to the building due to fire, flood, or storm. You should ensure smoke alarms are fitted and that fire extinguishers are available.
This policy also offers protection for stock, raw materials, and equipment against theft, fire, or flood. Implementing a stock control system to regularly check inventory can significantly reduce risks.
I hope this is of help to you.
Yours faithfully,
Aaron Ryan
Risk Consultant
Step 2
Identify main types of insurance
Answer
- Employers Liability Insurance - Covers claims from employees injured at work.
- Public Liability Insurance - Covers claims from the public for injuries on business premises.
- Product Liability Insurance - Covers claims from customers regarding food products.
- Buildings and Contents Insurance - Covers structural damage and loss of stock due to various risks.
Step 3
Outline ways to minimize business risks
Answer
- Employee Training - Regular training on equipment and food safety to reduce workplace accidents.
- Warning Signs - Clear signage in areas prone to slips to reduce public injuries.
- Regular Checks - Implement systems for regularly checking stock and sell-by dates.
- Emergency Preparedness - Install smoke alarms and fire extinguishers, and conduct regular safety drills.