It’s a given: you need restaurant liability insurance if you offer any food or drink to your customers. Working in the restaurant industry can be unsafe often enough. It is critical to insure your restaurant with the most significant possible coverage. We believe in small companies and take the time to get to know restaurant owners so that we can better acknowledge your specific needs and safeguard your company.
It would be alarming to hear that teenage restaurant employees have suffered 44,000 injuries in two years. But the data is authentic and compiled by the National Institute for Occupational Safety and Health.
Getting your restaurant insured is essential to keep yourself and your employees safe from mishaps while serving piping hot food items to your customers. Let’s discuss what type of restaurant insurance you can get, why it is crucial to be insured, and some guidelines for obtaining insurance coverage.
Types of Small Restaurant Insurance
It doesn’t matter whether you specialize in fast food or fine dining; all restaurants carry some risk because of the use of sharp objects, heat, fire, and contaminants.
Commercial Property Insurance
Even though business general liability insurance has the highest frequency of claims, restaurant property insurance claims the most significant dollar amounts. The structure, kitchen equipment, freezers, dining tables, and other similar items can all be covered by this policy.
The real estate structure you operate out of might be something you own, mortgage, or rent. No matter the ownership paradigms, you are responsible for ensuring the premises (a triple net lease).
Building coverage protects the following aspects of your project in addition to the physical structure:
- Any operating business branches
- Fittings and arrangements (including outdoor fixtures)
- Machines and equipment are of permanent use
Personal Property of Your Company
The business personal property (BPP) is the second commercial business property insurance policy coverage. Unless you are a tenant who has permanently added upgrades to your rental space, this policy provision does not cover the building.
Here are a few of the policy’s covered features:
- Fixtures and furniture
- Equipment and machinery
- You own all other personal property that you utilize in your firm
- Personal property leased to you and for which you have a contractual obligation to insure
Others’ Personal Property
Coverage for people’s property in your care, custody, and control is an often-overlooked but crucial aspect of a commercial property insurance policy. This might be the property you are leasing or even property belonging to a customer.
General Liability Insurance for Businesses
Another essential coverage for any restaurant is commercial general liability (often known as restaurant liability insurance). It assures your protection in terms of liability and cost if you cause property damage or bodily injury to consumers.
Slip and Fall
The slip and fall claim is the most prevalent claim we receive on restaurant insurance coverage. It protects you from slip and fall accidents and covers other common third-party business risks, such as customer property damage and advertising injury. It is also called general liability insurance.
When you run a restaurant, food poisoning claims are unavoidable. Some of these assertions may be false, while others may not. It would help if you had umbrella protection regardless of the veracity behind the allegation.
Your general liability coverage will cover bodily damage, whether you spill hot liquid on someone or a customer touches a boiling hot plate.
Compensation for Workers
The state government specifically mandates worker’s compensation insurance. It covers medical expenses paid by employees as a result of work-related injuries.
This is especially crucial at restaurants, where personnel constantly move, carry items, climb on chairs, reach overhead, and touch scorching surfaces. According to research, the restaurant industry will create 1.5 million jobs in the next five years, so getting insurance for your workers is essential now.
Liability of Garagekeepers (Valet Services)
Do you have coverage if you provide valet service? Who pays if a customer’s vehicle is damaged or destroyed while in your care? Because general liability insurance does not cover motor accidents, you need to get specific coverage for these incidents.
Liability for Alcoholic Beverages (If You Serve Alcohol)
If you sell any alcohol on your premises, your state may need you to get this insurance to keep your liquor license. This insurance protects your company from any risk resulting from overserving a customer. It also ensures you in the event of an accident while servicing an individual.
How to Get Restaurant Insurance?
Getting insurance coverage is simple if you have your restaurant’s details. You will have to provide basic information about your small business, such as revenue and staff count on your insurance application. Buying a policy and acquiring a certificate of insurance happens in three simple steps:
- Fill up an online application for free
- Compare insurance rates as required and choose your procedures and insurable items
- Pay for your insurance and get a certificate
Why Insurance Is Necessary For Small Restaurant Owners
Whether you specialize in fast food or exquisite dining, no restaurant is without danger. Food spoilage, kitchen fires, and other typical hazards are covered by policies tailored for restaurant operators.
Any restaurant can have an equipment failure, an allegation or actual occurrence of foodborne disease, or a chef’s accident. A lawsuit results in loss of income and added expenses. It will affect your bottom line and force you to close in some situations.
Although restaurant insurance will not be able to prevent such situations, it does help mitigate consequences.
Are You in Need of Insurance for Your Restaurant?
John M Glover can provide you with a restaurant insurance quotation in as little as a few minutes. You can talk to one of our specialized brokers about your restaurant’s insurance needs. Don’t hesitate to get your business insured. After all, it’s your right to protect your revenue. And we can help you get the best options.