Restaurants, like any other business, face a unique set of risks. For instance, customers could eat contaminated food sold on your premises and sue you for damages. Or they could injure themselves at your establishment and claim that you were negligent. All this means that you need the right type of insurance.
Insurance for restaurants can take many forms. However, it usually covers the essentials: public liability insurance, property insurance, workers’ compensation insurance, liquor liability insurance, and general liability costs.
Restaurant Insurance Explained
Restaurant insurance cost depends on the extent of coverage you need and the risks your enterprise poses. Cost estimates take the value of your business property into account as well as a host of other factors, such as the number of employees you have, whether you sell alcohol and your location.
Coverage works similarly to other types of business insurance. For instance, if a patron injures themselves on your property, restaurant insurance programs spare you from having to fund the compensation payments yourself. Similarly, if vandals damage your restaurant, restaurant insurance kicks in to provide funds to remedy the damage.
Practically any type of restaurant can benefit from our products, including:
● Grill style restaurants
● Family style restaurants
● International food diners
● Fine dining
● Sandwich shops
● BBQ restaurants
● Coffee shops
● Bagel shops
What Does Restaurant Insurance Include?
With restaurant insurance, you decide what goes into your policy. Thus, so long as you meet legal minimum insurance requirements, the level of coverage you choose is your choice. We’d recommend covering all bases, ensuring that you’re adequately protected against the risks you’re most likely to face.
Here are some of the components of a restaurant insurance policy you should consider:
● General liability: General liability insurance protects your restaurant against liability resulting from customers’ injuries and property damage, including foodborne illnesses. Usually, this insurance comes included in your policy bundle, but you may wish to include it separately.
● Liquor liability insurance: Liquor liability insurance protects you against the actions of intoxicated customers. Some states mandate that you have this insurance before they will grant you a liquor license.
● Workers’ compensation: Workers’ compensation insurance is a type of cover you can call on to pay employees’ lost wages and medical fees caused by on-the-job injuries. This type of cover is mandatory in most states.
● Property insurance: Property insurance is similar in scope to general liability insurance. The cost will usually depend on the value of your fixtures and fittings, the amount of stock you keep on-site, and your location.
● Business interruption insurance: Restaurants may also lose income following unexpected closure (usually related to a contamination issue). Business interruption insurance protects against this by providing continued income while operations are suspended.
When it comes to restaurant insurance, there’s no such thing as a one-size-fits-all policy. Every restaurant is different and faces unique risks. Your task as a business is to build the kind of insurance that protects you against the major risks you face. Hence, the shape your insurance takes will be different from that of another restaurant in your neighborhood.
Please note that you may not have the coverage you need under your existing policy. Your current insurer may not have adequately considered the risks you face, or the type of operation you run.
Restaurant insurance is highly customizable and depends on the nature of your operations. For instance, you can bundle business auto insurance into your policy to help with the cost of repairs for your delivery vehicles if they’re involved in an accident. If you operate a food truck, you can get auto insurance for this too.
Spoilage insurance is another great option for restaurants that keep a large amount of food on-site. This type of cover pays out if the power goes out or the refrigerator breaks down.
You can also get coverage for equipment failures that offer additional liability protection. For instance, you can insure against appliance-generated fire damage and injuries.
Get Business Insurance For Your Restaurant Today
Comprehensive restaurant insurance is vital for the long-term viability of your business. With it, you can protect yourself against various risks, giving you peace of mind.
We have a team of experienced underwriters ready to take on your case. We consult with you about the level of coverage you require and then design an insurance product specifically for you. Whether you have just one location or many, we’re here to help.