Restaurant insurance coverage needs are both different and similar to many other types of business. Not only do you face the same risks that other types of businesses face, but restaurants have a few additional risks in the forms of:
- Food poisoning concerns
- Slips, trips, and fall (employees and patrons)
- Equipment breakdowns
- Food spoilage
- Alcohol-related liabilities
Many of these risks require specialized insurance protection to manage that doesn’t fall within the scope of traditional business insurance products.
It can be confusing when you start the restaurant insurance buying process. Especially if you’ve never had to purchase this type of insurance protection before or you’re making the transition from a basic insurance plan to more robust coverage for your restaurant.
Types of Insurance Restaurants Require
Restaurants require traditional business insurance. These policies vary from one restaurant to the next. Working with an independent insurance agency can help you get the precise coverage you need because they have access to more insurance product offerings.
However, among the protections that all restaurants require, are:
- Business owner’s policy. This offers a small degree of protection for common issues that affect all businesses, including business property insurance, inventory insurance, general liability insurance for restaurants, and protection of lost income while making repairs after covered events.
- Workers compensation insurance. This essential coverage is required by law in most states and protects your business from legal action, to a large degree, if your employees are injured on the job by slippery floors, tripping hazards, fire, and countless other things.
- Commercial auto coverage. If you have restaurant-owned cars that make deliveries, you need commercial auto coverage. If you have employees who make deliveries in their personal vehicles, you need to invest in non-owned vehicle liability insurance to protect your restaurant if your employee’s coverage is insufficient for the task.
- Equipment breakdown insurance. This policy helps to cover the costs of repairing or replacing equipment if it breaks down. There are some policies available that can even help you replace food inside walk-in and reach-in coolers, freezers, etc. if they break down and the food inside them is ruined — or otherwise rendered unusable.
- Liquor liability insurance. If your restaurant serves alcohol, liquor liability insurance is a must. It can cover legal costs if you are sued as a result of an event associated with alcohol you served.
- Employment practices liability insurance (EPLI). This important restaurant insurance policy provides coverage to employers against employee claims alleging areas like wrongful termination, harassment, discrimination, and other employment-associated issues.
- Cyber liability insurance. Most restaurants process many credit card transactions daily. Because of this, they are susceptible to a data breach or cyber theft.
- Umbrella liability insurance. Because there are so many risks for restaurants when it comes to liability insurance, it is wise to invest in an umbrella liability insurance policy. Restaurant umbrella policies are available to all classifications of restaurants from fast food to casual eateries to fine dining and help to extend your liability limits.
There are so many options to consider when it comes to restaurant insurance that it is worth your time to work with an expert, like Generazio Associates, to ensure you’re getting the right types and amounts of protection you need.