As an owner of a restaurant, you may be required to carry several different types of insurance coverage. Some insurance is required by law and some may be required by your financial institution if you have taken out a large business loan or a mortgage on the building in which your restaurant is housed. If you rent the building, you may be required to carry business insurance as a condition of your lease.
Some necessary insurance types include:
- Commercial vehicle insurance: This is necessary if your restaurant offers delivery service or catering using company-owned vehicles, or your employees drive vehicles in the course of work.
- Restaurant insurance: This is a business insurance policy specifically designed for owners of restaurants. It provides general liability and property damage coverage as well as coverage for many types of hazards unique to restaurant owners.
Restaurant Insurance Provides Liability Insurance
Restaurant owners have a number of liability risks. Restaurant insurance costs far less than a serious lawsuit might, so it is an especially good investment. Some examples of the of liability coverage options available are:
- General liability: This includes operations and premise liability. If a customer is injured in your restaurant or parking lot and it can be shown that you are responsible due to negligence in upkeep, poorly placed objects or the actions of one of your employees, you may be responsible for extensive medical bills. General liability insurance is designed to provide coverage for medical costs and damages.
- Product liability: As a restaurant owner, your product is the food you serve. If customers become sickened by food poisoning or other food-borne illnesses, such as hepatitis or salmonella, and it can be proven that this occurred because of food served in your restaurant, you may find yourself sued for medical costs and punitive damages. Product liability insurance will shield you from the high costs associated with such a lawsuit.
- Liquor liability: If your restaurant serves alcoholic beverages and allows a customer to become intoxicated, your business may be held liable for the drunk patron’s ensuing actions, including acts of violence and property destruction. Liquor liability insurance can help to protect you from financial losses if you are sued.
- Hired and non-owned vehicles liability: If your restaurant offers food delivery service but your employees use their own vehicles, this will provide you with coverage against potential liability lawsuits if they are involved in an accident while making a delivery for you.
- Cyber Liability: It’s almost impossible to run a restaurant business today and not transact with credit cards. And if you are, you have a responsibility to keep your customers information secure. Cyber insurance comes into play if something happens and your customers information is stolen.
With every coverage type listed above, your insurance includes compensation for the court costs and legal fees you may incur as a result of a liability claim against you.
Restaurant Insurance Provides Property Coverage
Your insurance will also provide you with coverage for damages against your property. This can include damages caused by fire, crime, electrical problems and certain weather events. Some policies will require you to purchase specific event coverage. Some property coverage options include:
- Building coverage: This provides compensation for damages to the structure of your building. This is necessary only if you own your restaurant’s building.
- Contents coverage: This includes coverage for your property, including furniture, light fixtures, artwork, flooring, computers and kitchen equipment.
- Equipment breakdown coverage: Equipment such as freezers, stoves, dishwashers and air-conditioning units are vital when running a restaurant. If a power surge or mechanical failure results in equipment breakdown, your business can experience expensive repairs and lost income. This coverage will provide you with compensation for your losses so that you can get your business up and running again without suffering financial setbacks.
- Food contamination coverage: If a power outage, mechanical failure or other covered event results in spoiled food that must be thrown away, this coverage will cover the replacement costs.
To find out more about these, as well as other products and services, call Hamler Gingrich Insurance at 937-698-4101 and we’ll help make sure you’re properly covered.GET A QUOTE