Restaurants are susceptible to a number of problems, no matter their size. Broken equipment can leave your finances unbalanced, while a patron who slips and falls due to a spilled drink may sue to pay for medical expenses. Even your employees can present a serious concern. Comprehensive restaurant insurance is therefore essential when it comes to protecting your business from financial liability. Restaurant insurance refers to a number of insurance policies that can be used to help pay for unexpected costs, from legal fees to medical bills. The following guide can help you understand and choose restaurant insurance policies for your business.
Restaurant Insurance Coverage Options
Restaurant insurance isn’t one single policy. Instead, it’s a collection of insurance products that can be combined in customized packages based on your unique needs. The policies described here are among the most popular. Some are required, while others are highly recommended for optimal coverage. Speak with your insurance broker for more information about recommended and required restaurant insurance options.
Property Insurance
Property insurance helps protect your building and other physical assets in the event of a fire, explosion, burst pipe, storm, theft, or act of vandalism. This allows you to rebuild or make necessary repairs as quickly as possible without putting a serious strain on your finances. Property insurance can also help you decrease the number of days during which the restaurant needs to be closed thanks to speedy financing, decreasing the amount of money lost overall. Note that earthquake and flood damage is typically not covered in standard property insurance policies but can be added on for a higher monthly premium.
General Liability
A general liability insurance policy covers several potential scenarios, including property damage and personal injury sustained on your premises. It also covers false advertising claims, which can include libel, slander, copyright infringement, and invasion of privacy resulting from promotions for your restaurant. The policy will help you pay for legal fees related to a lawsuit as well as any damages for which you are found liable, such as medical bills or the cost to replace a damaged item.
Product Liability
When you run a restaurant, your product is the food and drink you serve each day. If a patron decides to sue your restaurant because they get sick from your food, product liability can help you pay for related legal fees and medical expenses. This type of insurance is also beneficial if you sell pre-packaged goods, including bottled beverages, chips, and snacks originally purchased from other companies.
Liquor Liability
Bars, nightclubs, and other establishments that sell alcohol should always get liquor liability insurance. Serving alcohol means your business is responsible for any damage caused by an inebriated patron, or for any injuries that patron sustains or causes to others, whether they are on your property or have already left it when the damage or injuries occur. Serving alcohol therefore leaves you open to significant liability, and a strong liquor liability insurance policy can help protect you from resulting costs if your business is named in a lawsuit.
Commercial Auto Liability
Food trucks, restaurants that offer delivery and catering, and businesses that offer employees the use of a company vehicle should consider commercial auto liability coverage. This helps pay for injuries, property damage, and legal fees in the event of an accident. Commercial auto liability insurance is required in most states for restaurants using company vehicles.
Employee Coverage
Another type of insurance that is required in most states is worker’s compensation insurance, which pays employees their wages and covers any medical attention necessary if they are injured while working. Disability insurance, which helps compensate employees who need to take an extended period of time off from work, is typically optional but can be a welcome benefit for your employees.
Speak To Experienced Specialty Insurance Brokers
Acquiring a comprehensive restaurant insurance package that provides all of the aforementioned coverages is a worthwhile investment in the success of your business. It can protect your restaurant from incurring costly financial burdens as a result of employee negligence or unavoidable events, allowing you to continue operations for years to come.
Contact John M. Glover for more information about total restaurant insurance coverage. The agency has been providing insurance packages for restaurants in the Fairfield County, Connecticut area for more than a century and prides itself on offering simple, fast, and convenient insurance support. John M. Glover’s experienced insurance brokers can help you create a restaurant insurance package that gives your business comprehensive coverage and peace of mind in any unexpected financial situation.