Liability Insurance

Restaurant Insurance

A restaurant business requires a substantial financial investment to ensure everything is up and running. It requires getting the right location, finding the best suppliers of products, and supervision of employees. The right coverage for your business offers peace of mind should anything go wrong you are well cushioned.

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Restaurant Insurance

Restaurants can be specialized by serving a specific dish, such as Chinese or Indian dishes, or offering general meals. It could be a buffet or a la carte menu. The drinks served are either alcoholic or non-alcoholic, depending on the establishment. Some restaurants entertain through live bands, contests, “happy hour,” etc.

The restaurant industry is filled with risks that could lead to financial devastation. Injuries are bound to happen caused by burns from cooking stoves, slips and falls, cuts and bruises, and food-borne illness. Restaurant commercial insurance mitigates these risks so that they do not affect your profits when things go wrong.

Restaurant Insurance Cost

A standard general liability policy package rates vary on the restaurant’s location, experience, number of customers served annually, revenue, number of employees, type and age of the building, claims history, the value of the equipment, alcohol sale, and security systems.

What kind of insurance does a restaurant need?

The biggest hazard faced by restaurant business owners is fire damage. Every year thousands of restaurants are affected by fire, amounting to massive financial losses. There are many insurance coverages for restaurants, and most come packaged as a combined policy. Some of them under the legal requirement for restaurant establishments.

Insurance policies to consider for your restaurant business include

General Liability

Provides coverage for your customers if they are injured while at your property. For example, if a customer slips and falls at your establishment, the policy covers medical costs.

Liquor Liability

The policy provides financial protection if a customer is involved in an alcohol-related incident leading to damage of property or harm of another person.

Product Liability

Most product claims are a result of food-borne illness. Suppose a customer gets sick as a result of food intake from your establishment. The policy protects your business from claims made from products served by your establishment.

Cyber Liability 

Protects your business financially from cyber-attacks that could lead to customer information getting stolen or leaked.

Commercial Auto

Some restaurants offer delivery services, and the policy offers liability protection for your business. The policy covers the cost of repairing or replacing the vehicle in the event of an accident.

Worker’s compensation

The policy pays medical bills if a worker gets a job-related injury or illness. It also covers lost wages.

Why is Property Insurance Important?

Property damage to a restaurant business can result from fire, electrical fault, theft, or vandalism.

Within property insurance, the coverage includes

Building Insurance– the policy compensates for the structural damage.

Contents Insurance– covers the equipment used in your establishments. It includes cookers, fridges, furniture, lighting fixtures, antique decor, etc.

Equipment Breakdown Insurance– Malfunction of any equipment can lead cause financial losses to your business. Equipment breakdown equipment ensures your equipment is repaired or replaced without affecting your business operations.

Food Contamination Insurance– Breakdown of equipment, power outages can cause food to spoil, rendering it unusable. The policy helps you to recover your loss from such events.

Loss of Income Insurance– Damage caused to your restaurant can lead to closure or relocation.

The insurance policy covers your expenses and income until you can be operational again.

Do you need Flood Insurance?

This insurance coverage is not mandatory, and most policies do not cover flooding incidents. However, if your restaurant operates in a flood-prone location, it is necessary to protect your business in the event of flooding.

Restaurant business operate under many threats and risks. The unique operations require you as the business owner to tailor your restaurant insurance policy to suit your specific needs. Get insured by professional agents who will advise you on how to ensure your business.

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