Have you initiated the challenging yet exciting process of opening a restaurant? Do you enjoy creating dishes or experimenting with different cuisine? Want to pursue a lifelong passion for serving others? If the answer to all these questions is yes, know that insurance is an essential part of owning and running a restaurant.
Undeniably, running a restaurant is daunting and challenging. Not only do you have to worry about food quality, service, personnel, and customer service, but you also have to consider customer safety, profitability, regulations, insurance, and taxes.
Owning a restaurant carries specific risks, unforeseen incidents, and accidents, just like most other businesses. These variables are essential for determining coverage. It takes a single lawsuit from a customer or client for you to end up bearing major financial losses. Arbitration also takes up a substantial amount of time and energy. That’s why you need to continue reading.
Get your restaurant business adequately protected by insurance. Accidents are inevitable in the restaurant business. You may find yourself in an unexpected spot where your only option is to thank yourself and say, “I’m glad I have insurance.” According to the data, restaurant owners can pay between $2,000 and $8,000 annually for coverage, depending on its scope and size.
Here’s an easy-to-follow guide to what restaurant insurance you might need and the best way to lower your insurance costs.
Let’s buckle up and explore the different types of insurance coverage for the restaurant business.
Types of Restaurant Insurance Coverage
The idea of starting a restaurant business involves various types of risks. Though these risks should never hold you back from your dream of owning a restaurant, be aware of them and be prepared as a restaurant owner.
Insurance protects your restaurant against financial losses from property damage or bodily injury claims.
General Liability Insurance
General liability insurance is one of the core coverages that every restaurant should purchase. It protects your restaurant against claims and lawsuits due to incidents causing bodily injuries, advertising injuries, and property damage. These incidents usually occur due to accidents such as slips, food, and falls. Not only this, but it protects against common customer complaints like food poisoning and customer burns. When you purchase general liability insurance, your insurance company will step in to save the day and cover legal fees.
Commercial Property Insurance
Although general restaurant liability insurance has the highest frequency of claims, restaurant property insurance records the highest dollar claims. The commercial restaurant property insurance policy covers kitchen equipment, dining tables, freezers, and building, among other properties.
Restaurants and their operations involve open flames and ovens, hence commercial property insurance is must-have coverage for all restaurant owners. In general, this insurance policy is associated with loss and damage to property. Commonly, restaurant property coverage includes building fires, theft, repair of equipment, and other accidents.
Workers Compensation Insurance
As the name suggests, a workers’ compensation policy focuses on the staff and employees in your establishment. It pays for medical expenses, rehabilitation costs, or lost wages if any of your workers incur work-related illnesses. The law requires that restaurants have adequate worker compensation insurance, and requirements vary from state to state.
Crime insurance protects your restaurant business from different kinds of theft, such as forgery of documents, extortion, and burglary. Restaurants have a high frequency of daily revenue generation, making them a target for criminals. That’s why it’s essential to purchase this policy.
Commercial Auto Insurance
If you use vehicles for your business operations, especially daily, it might run like clockwork. But that doesn’t mean you should not take measures to protect it. Remember, a commercial auto insurance policy won’t cover any claims that go beyond restaurant operations.
A Commercial Auto Insurance policy covers vehicles used for restaurant-related operations, such as your delivery staff using the vehicle to supply food.
Liquor Liability Insurance
If you serve any kind of alcohol, the chances are that your state will require you to have this insurance policy to maintain a liquor license. It covers costs against lawsuits caused due to a customer’s intoxicated state. Your restaurant could become central to lawsuits for overserving alcohol if inebriated customers get wounded or injure someone else.
Choosing the Right Restaurant Insurance – JMG Insurance Agency
Insurance is a vital ingredient for any successful restaurant, and it allows restaurant business owners to pay monthly premiums to protect them against all kinds of damage and risks. You can’t always predict disaster, but you can lessen its impact with an insurance policy that helps you bounce back and keep your doors open.
Insurance policies prepare your restaurant business from unfortunate accidents that can potentially bring your business down financially. Choosing the right insurance policy and a credible insurance partner helps you deal with all the risks of owning and running a restaurant business. Instead of worrying about expected or unexpected issues, use your attention and time productively to grow your business.
Buying the best insurance policy is essential for the security of your restaurant business. We cannot stress how important it is to choose the right policy based on your custom variables. At John M. Glover Insurance Agency, our professionals are available to serve and guide you. We can assess the risks specific to you and we’ll recommend the types of insurance that best suit your restaurant. Request a quote today, and let us help you determine the right coverage for your restaurant business. After all, you deserve the success of a hit restaurant.