Restaurant insurance can cover all types and sizes of food service businesses. It provides comprehensive coverage to protect your investment from many of the industry’s common risks. The size, location, and operations of your restaurant determine your insurance needs. Here is the role of restaurant insurance in protecting your investment:
Property Coverage
Property coverage protects the physical assets that your restaurant depends on to operate daily. This includes coverage for your building if you own the property. Ovens, refrigerators, and dishwashers that are used in the kitchen are covered in case of unexpected damage. Your inventory, including food supplies, beverages, and non-perishables, is covered. Usually, property insurance covers damage from fires, storms, and water incidents such as burst pipes. It also covers external features such as outdoor seating areas and signage in case of damage.
General Liability Insurance
General liability insurance for your restaurant provides coverage from legal claims arising out of third-party injuries. It may cover incidents like customers slipping on wet floors or tripping on a rug. Most general liability policies will cover medical expenses for injured patrons. Attorney fees and court expenses are covered as well. Claims related to food poisoning are also protected. The liability coverage could include incidents in parking lots or outdoor dining areas, and even reputational harm claims, such as defamation or slander. The scope of your coverage should be based on your restaurant’s size, location, and risk factors.
Business Interruption Insurance
If your restaurant cannot operate as usual, restaurant insurance provides financial support to supplement your cash flow. Coverage will begin after fires, floods, or extended power outages cause you to shut down for a while. This insurance will cover ongoing expenses like rent, loan payments, and utility bills. They can cover employee wages to help retain staff during temporary closures. This coverage reimburses lost profits based on past financial records and may even include relocation costs to temporary facilities. Coverage is usually given for extra expenses for expedited repairs or equipment rental.
Workers’ Compensation
Workers’ compensation covers employees who get hurt while performing their job duties. Physical therapy and occupational training cover the costs of rehabilitation. Workers’ compensation also partially replaces lost wages to employees recuperating from work-related injuries. The coverage also includes work-related illnesses, such as respiratory issues from cleaning chemicals. Workers’ compensation is required in most states.
Liquor Liability Coverage
Liquor liability coverage covers restaurants that serve alcoholic beverages against alcohol related incident claims. The coverage also extends to intoxicated patrons who injure themselves and includes protection for incidents involving intoxicated customers who damage property or harm other people. This policy covers the legal defense costs of alcohol-related lawsuits. Your establishment’s alcohol sales volume and business hours should determine your coverage limits. Coverage is extended to table service, bars, and catering events. Protection covers events at which your staff serve alcohol at off-site locations.
Get Restaurant Insurance
Restaurant insurance is a financial safety net for your business investment. The various coverage types focus on daily risks in the food service industry. Multiple policy types should be included in a comprehensive insurance program. Schedule an insurance review today so you know your restaurant is fully protected.
