As a restaurateur, you face many risks and challenges in your business. From food spoilage to liability claims, you should be prepared for any unforeseen events. A restaurant insurance policy helps protect your business from these risks. Here is a guide to restaurant insurance and some of the coverage options available:
Liability Insurance
General liability insurance protects your restaurant against financial losses resulting from claims of bodily injury. Your restaurant can be held liable for accidents and injuries that occur on your premises, such as slips and falls or food allergy reactions. For some policies, this coverage also extends to property damage caused by your restaurant operations.
Liquor Liability Insurance
If your restaurant serves alcohol, you may be responsible for claims related to consumption. Dram shop laws make restaurants legally liable for visibly intoxicated patrons who cause damage to themselves or others. A restaurant insurance policy can include liquor liability to protect your business from these types of claims. Check your state laws to understand how much coverage is required for liquor liability insurance. An insurance agent can recommend the right amount of coverage for your business, depending on the type of alcohol you serve and how much.
Commercial Property Insurance
You have invested money in equipment, inventory, furniture, and other property to verify that your restaurant runs smoothly. If these assets become damaged, either due to fire, flooding, or other events, commercial property insurance limits how much you must pay out of pocket to repair the establishment. Theft and vandalism are other risks restaurant owners may face. If your restaurant is located in a high-crime area, commercial property insurance helps safeguard against damage. Covered causes of damage can vary from policy to policy, so reviewing risks specific to your area helps verify adequate coverage.
Workers’ Compensation Insurance
Your restaurant employees are integral to the success of your business. As an employer, it is your responsibility to provide a safe work environment and help cover costs in case of on-the-job illness or injury. Workers’ compensation insurance typically includes medical expense coverage and wage replacement as an employee recovers.
Workers’ compensation may be mandatory for business owners, depending on your location. Policy notices should be placed in the workplace, so employees know what coverage is available to them. Preventive measures, such as employee training, can help reduce the likelihood of accidents that require insurance claims.
Directors and Officers Insurance
Your restaurant may have a board of directors or managers who make decisions for the business. Directors and Officers (D&O) insurance coverage protects business executives who are sued for alleged wrongdoing in the course of their work. This coverage may protect them against legal claims regarding their decisions or actions taken on behalf of the restaurant. Some potential risks include:
- Neglect
- Misleading information
- Wrongful trading
- Errors in financial reporting
Secure a Restaurant Insurance Policy
You can secure a restaurant insurance policy to safeguard your business from various types of risks. This supports the continuity of your business and mitigates financial losses in case of injury or property loss. Contact a reputable insurance provider to customize a plan that suits your business needs today.
