$1.5M Outback Steakhouse Lawsuit Alleges Mashed Potato Slip-and-Fall

A recent mashed potato spill at an Outback Steakhouse was not just messy — it has turned out to be costly. A woman in Virginia is seeking $1.5 million in damages after allegedly slipping on mashed potatoes at the restaurant, underscoring how seemingly minor hazards can lead to major liability claims for hospitality businesses. According to CBS News, the customer alleges she suffered serious injuries from the fall while walking to a restroom at the restaurant.

The woman reportedly fell face-first onto the floor and has experienced significant pain and a reduced ability to work since the May 2023 incident. The lawsuit claims the business failed to remove the spill or warn customers about the alleged dangerous condition, CBS reported.

“Even a small spill can create a hazardous condition. It is not always a big catastrophic event,” said Scott McClellan, Underwriter, Commercial Insurance, Burns & Wilcox, Ruston, Louisiana. “It could be the smallest little incident that occurs to cause something like this.”

Even a small spill can create a hazardous condition. It is not always a big catastrophic event.

These incidents are one reason restaurants rely on Hospitality Insurance policies including Commercial General Liability (CGL) Insurance, which can respond to third-party bodily injury claims and help pay for legal defense, settlements, and other costs.

“It is up to the business to make sure the premises are suitable for all guests,” said Jeffrey Phillips, Manager, Commercial Insurance, Burns & Wilcox, Toronto, Ontario. “Housekeeping is a big part of owning a restaurant.”

It is up to the business to make sure the premises are suitable for all guests. Housekeeping is a big part of owning a restaurant.

Everyday hazards can have major consequences

According to CBS News, the Outback Steakhouse customer claims the spilled mashed potatoes remained on the floor for an extended period of time and created “unreasonably dangerous” conditions for guests. While the restaurant did not comment on the litigation, the lawsuit serves as a reminder that common restaurant hazards can become serious liability concerns.

Due to the risk of food and beverages creating slippery conditions in high-traffic areas, employee awareness and risk control procedures are critical for restaurants, McClellan said.

“Employee training is really the first line of defense for restaurant owners,” he said. “It is best if they train staff to respond to those hazards immediately, whether that involves cleaning it up, placing wet-floor signage, or notifying management. Every employee plays a role in the risk management of a business.”

Understaffing can heighten risks, especially during a restaurant’s busiest hours, Phillips added. “If you are a really busy restaurant, that is often when things like this can happen,” he said.

When purchasing CGL Insurance, business owners may be asked to provide information on these risk management protocols. Staff should also be trained to carefully document accidents when they occur, which can make a difference in the outcome of a lawsuit or claim, McClellan said. “Documentation can make or break a claim,” he said. “Small details can drive what direction the claim or lawsuit goes in.”

Documentation can make or break a claim. Small details can drive what direction the claim or lawsuit goes in.

Slip-and-fall claim frequency, severity on the rise

Other restaurant slip-and-fall cases in recent years have demonstrated how costly these claims can become. In November of 2025, a woman filed a lawsuit against a Chick-fil-A in Texas seeking more than $1 million after she allegedly fell on a wet floor that was left “unmarked and unaddressed,” the Wichita Falls Times Record News reported. In 2023, a Florida jury awarded nearly $8 million to a customer who alleged he suffered serious injuries after slipping on a wet substance inside a Burger King restroom, CBS News reported.

When a business faces a slip-and-fall lawsuit, potential expenses that can be covered by CGL Insurance include medical costs, lost wages, and legal defense. “Sometimes in these litigation cases, individuals will also claim emotional damage or other damages that are harder to put a dollar amount on,” McClellan said.

Legal expenses can be substantial, whether or not a business is ultimately found to be liable for an incident. “Whenever it goes as far as a lawsuit, there are defense costs involved,” he said. 

With legal defense and settlement costs on the rise, CGL Insurance limits and policy terms should be reviewed regularly, Phillips said. “That is what the CGL is for — third-party bodily injury and property damage,” he said. “Expenses are going up and up. The legal expenses can definitely climb.”

However, rising claim severity is not limited to the hospitality industry, McClellan noted. Retail stores, contractors, and other industries are also seeing a rise in the cost of claims. “We are seeing higher claim severity across the board,” he said.

Many CGL Insurance policies have a $1 million per-occurrence limit, but lawsuits often seek much more. Excess Liability Insurance can provide liability limits above underlying policies and is a key consideration for many companies.

“Limits that may have been adequate several years ago might not be adequate in today’s world,” McClellan said. “Going back to this Outback situation where they are being sued for more than $1.5 million, most CGL Insurance policies out there are going to have a $1 million occurrence limit. That would already be over policy limits. Excess Liability Insurance is a real need today.”

“The defining lesson of the last hard market cycle was the sharp rise in claim severity, reshaping Excess Liability underwriting,” said Barb Habel, Vice President, Head of Excess Casualty, Atain Insurance Companies. “Today, underwriting extends beyond an insured’s risk controls to include venue-specific litigation trends and the drivers of nuclear verdicts. Losses that once remained within the primary Liability layer can now quickly penetrate Excess coverage. In hospitality, even routine incidents such as slip-and-falls or burn injuries can result in settlements approaching $15 million in plaintiff-friendly jurisdictions.”

Safety practices can affect coverage options

After an incident, security cameras can provide valuable evidence if questions arise about how long a hazard was present or whether warning signs were used. They can also help businesses establish a clear record of events when claims arise, Phillips said.

“Cameras are very good to have, especially for situations like this,” he said. “Keep a logbook and document any incidents.”

Establishing formal procedures for identifying and responding to hazards is also helpful and could impact a restaurant’s insurance options. “Risk controls that can be proven to reduce losses or improve claim outcomes can open market access and potentially result in more favorable underwriting,” McClellan explained.

This is why insurance companies exist. You try your best to mitigate these risks, but a slip-and-fall is the most common loss you are going to run into at a restaurant.

Not all potential hazards can be eliminated in a restaurant setting, Phillips said, and CGL Insurance is an important safeguard. “These things can happen in any kind of restaurant, which is why it is important for restaurants to have insurance,” he said. “This is why insurance companies exist. You try your best to mitigate these risks, but a slip-and-fall is the most common loss you are going to run into at a restaurant.”