There are many different aspects of being sure that your restaurant is properly insured. Coverages include general liability, building coverage or fire liability, business property, automobile, umbrella insurance, liquor liability, workers compensation and other optional coverages.
With any business, liability is the most important coverage. This is the coverage that protects the business in case of suit such as falls or even food poisoning. These types of claims can be detrimental to a business.
If the business owns the building coverage can be added to the policy to cover against fire, windstorms, hail etc. Think of this coverage just as you would a home policy. Parts of the building coverage actually can include property such as built-in freezer and refrigerators as well. When the business rents the property coverage can be provided to protect the building such as fire under the fire liability coverage.
In the case that the business owns a vehicle, commercial auto insurance is offered. This coverage can be good to cover the auto owned by the business for liability, collision and comprehensive coverage as well.
Umbrella insurance covers the business’s general liability and automobile liability over and beyond the base limits on the policy. In the case that there is a claim over and beyond the coverage on the main policy this will prevent additional financial stress on the business. This is extremely important to the owner of the company as well as the employees that depend on the company for their income.
Liquor liability is important to every restaurant that serves alcohol. When there is alcohol served and there is a lack of judgment by the server in the limit served to the patron things can get bad. An example would be a patron leaving an establishment and harming someone while drinking and driving. It is also very important to have a set guideline with your employees to call upon taxi services in the case of extreme intoxication.
Other optional coverages for restaurants include food spoilage, water sewer back up coverage, utility outage coverage, data breech and cyber coverage. Utility coverage can help when water, internet or electricity services are not able to be used at the business and the business is not able to operate.
Types of insurance needed:
- Property (Hazard & Fire) Insurance
- Liability Insurance
- Water & Sewer Backup Insurance
- Flood Insurance
- Wind & Hail Insurance
- Loss of Income Insurance
- Terrorism Insurance
- Umbrella Insurance
- Worker’s Compensation Insurance