Pizzerias, sandwich shops, bars, diners, and coffee shops, are among many of the different types of restaurant businesses that need insurance. Any type of business that cooks and serves food have many risks they face from food spoilage to daily traffic of customers coming in and out of the restaurant. If you are a restaurant, what type of insurance coverages do you need to protect your business? Below we have highlighted the key insurance coverages all businesses should have as well as recommendations on optional insurance coverages.
Key Insurance Coverages:
Business Owners Policy (BOP): Having a BOP protects your building and contents in the event of a fire, windstorm, or theft. Often many carriers may provide business income coverage which can help you pay some of the continuing expenses and income while your business is being repaired.
General Liability: General Liability protects your restaurant against lawsuits and other financial liabilities that result from accidents such as food illness and customer slips and falls.
Workers Compensation: This coverage helps protect your business employees if they get injured or ill while at work.
Restaurant businesses are different in every way and form from the food they serve to the service they provide to their clients. Each restaurant has its own unique insurance risks that are specific to them. This is why some insurance carriers offer optional insurance coverages that provide additional protection beyond the key basic insurance coverages mentioned above.
Optional Insurance Coverages:
Liquor Liability: If your business generates a profit from alcohol this coverage offers protection from liability associated with making, selling, and serving alcohol.
Equipment Breakdown: Equipment breakdown pays for physical damage to equipment such as refrigeration systems, air conditioning, etc. In addition, this coverage can help pay for spoilage and extra expenses to limit equipment loss or to speed up repairs.
Cyber Liability: If your business collects and maintains data on clients and employees you have a responsibility to safeguard that data. Furthermore, restaurants are also vulnerable to data breaches, viruses, and malware attacks from cyber criminals. Cyber Liability Insurance helps provide coverage to protect your business and may extend protection to your clients when there is a cyber-attack or data breach to your business.
Employment-Related Practices Liability Insurance (EPLI): Businesses with one or more employees are exposed to employee workplace risk. EPLI protects you against claims made by employees alleging wrongful acts you commit as an employer.
Business Auto: Business Auto Insurance provides coverage if you have business vehicles that are used for deliveries or other business uses. It is important to discuss this coverage with your independent agent because certain business usage and vehicle types may be excluded from a personal auto insurance policy. Due to this reason, your business may need to have a separate commercial auto policy.
Contact our trusted commercial advisors here at Paroubek Insurance to help you review your business insurance risks and find the right insurance coverages to protect your restaurant and employees today!
Sources:
Acuity Progressive Commercial Secura