Owning a restaurant business comes with many costs. A restaurant is both exciting and profitable, but on the flip side, there’s so much that can go wrong.
There’s a range of daily activities to oversee, from dealing with customers, food quality, and experience to running back-end operations. If any accidents happen at your business or a customer files a lawsuit against you, your years of hard work and savings can go to waste.
One wise investment can save your entire business. Restaurant Insurance gives you the certainty that you won’t face hurdles or financial and operating losses without backup. If you start your restaurant business on a limited budget, don’t ignore restaurant insurance because you may spend more on liabilities.
Importance of Restaurant Insurance
Restaurant insurance offers policies that protect your restaurant establishment from any financial losses incurred via your staff, lawsuits, and accidents like fires and natural disasters. It is often a collective package of many insurance policies.
Business owners invest time and money in building their industry and creating a credible brand reputation. Since every restaurant has its unique needs and interests, restaurant insurance must find comprehensive packages to cover these needs.
Types of Insurance Restaurants Need
There is no one particular policy purchased under restaurant insurance. There are many types of insurance a restaurant needs. The most commonly purchased insurance restaurants invest in are as follows:
General Liability Insurance
It is also commonly known as commercial liability insurance; it might be the most well-known insurance restaurants need. This insurance protects your food business from body injuries like slip and fall accidents that can occur in restaurants.
If someone slips and falls in your restaurant due to a wet floor with no warning sign, that single incident can cause you lawsuits, holding you liable for medical bill payments. In worse cases, litigations get costlier.
Food poisoning accidents are also possible. Sometimes, these may be false allegations, but your reputation and credibility damage is real. And if your food causes somebody harm, you can be in serious trouble.
Servers may spill or drop hot liquids or foods on another, which can cause a burn. General liability insurance covers the cost of this and the previous scenarios.
Commercial Property Insurance
General liability insurance claims are the most common but commercial property saves you from steep damage costs. Commercial property insurance covers expensive restaurant equipment like fryers, ovens, freezers, kitchen equipment, dining table decorations, etc.
There are possibilities of fire accidents in restaurants. Your staff works close to each other and on stoves, burners, ovens, and fires. Accidents are inevitable and can cost considerable property damage. Insurance protects you.
Workers Compensation Insurance
It is necessary to protect your employees from the potential dangers in restaurants. Your employees working in your kitchen as cooks and cleaners use knives, cutters, and equipment that can be hazardous. Hence, many states mandate worker compensation insurance.
Also, employees may get injured or hurt anywhere in your establishment while performing routine jobs. Worker compensation insurance covers the medical bills for your workers; it benefits them and is a good, ethical business practice for owners.
Garage keeper Liability Insurance
This insurance is needed when you have commercial vehicles leased or under your restaurant name or when your restaurant has valet service. In case of an accident caused by your valet or vehicle, commercial auto insurance covers the cost of the damage.
Damages caused by valet staff and vehicles can cost a lot. The cars placed under your valet services are often pretty expensive, so this insurance is beneficial. Restaurants need to purchase this insurance separately because commercial liability insurance does not cover it.
Liquor Liability Insurance
State laws also require liquor liability insurance from restaurants that sell alcoholic beverages. This insurance is for bars, cafes, and restaurants that serve alcoholic products. When people get drunk, they become prone to making mistakes and suffering or causing injuries. For example, one bar fight in Texas cost the bar owner $1.5 million in lawsuit charges.
General liability insurance does not cover any incidents in your restaurant or outside of your restaurant. Drunk people often get into altercations that can damage your and others’ property, cause bodily injuries to themselves or others, and cause any property or health damages outside your restaurant premises.
Where other insurance packages will not cover any such damage caused by individuals under the influence, your liquor liability insurance keeps you protected.
Protect Your Restaurant With JMG Insurance
John M. Glover Insurance Agency recognizes your efforts. We know the struggles business owners face to get off the ground: the hardships endured and the dedication placed in building a restaurant. Unforeseen accidents are a part of life, but they don’t have to take you down.
Don’t let events control the outcomes and ruin everything. With the correct information and insurance coverage your business needs, you’re ready to face every challenge.
All you have to do is visit our website today or contact us to get your restaurant’s best information and insurance policy. And what’s more, we use our expertise and experience to guide you on what works best for you.