Restaurant Insurance: What It Is, Costs & Companies 2024

You may wonder what type of insurance you need to protect yourself from risks associated with running your restaurant. Lets go over what restaurant insurance is, how much it costs & what basic coverage includes. We will also discuss what you should look out for when comparing insurance companies. With information you have, it's easy to find a policy that suits your needs.

Do I Need Restaurant Insurance?

If youre restaurant owner, you need restaurant insurance. You may have to temporarily close your restaurant if fire damages equipment. You could be sued by guest who slips & falls in dining area of your restaurant or contracts food poisoning. One of your employees could be injured at work. All of these risks can be protected by right insurance policy. In some states, certain types of insurance coverage are required.

Compare quotes from different companies to find the best deal. Many insurers offer discounts when you bundle multiple coverage types, while others allow you to select higher monthly deductibles. Take action to lower your risks, like offering workers safety training.

What is Restaurant Insurance HTML0?

Typically, restaurant insurance is combination of insurance policies for small businesses that protects against different risks associated with industry. You may require certain coverages depending on your restaurant. sandwich shop that offers delivery may have different insurance needs from pub serving beer. These are common insurance coverages needed by many restaurateurs.

Workers Compensation Insurance

In most states, businesses that have more than one employee are required to carry workers compensation insurance . Some states require you to have it, even if your business only has one employee. workers compensation policy pays for medical expenses & wages lost by your employees if they are injured on job. It also protects restaurant owners from lawsuits brought by employees.

General Liability Insurance

If client files suit against you for negligence, insurance will cover your legal costs & any judgments. This includes both property damage (for instance, when server spills wine on fur coat of customer) & physical injuries, like slip and fall accidents. policy also pays for customers medical expenses. It also typically covers advertising related lawsuits, including libel & slander as well as copyright violations, plagiarism, malicious prosecution & slander. Check that general liability policy you have includes product liability, as this can cover food poisoning lawsuits.

Commercial Property Insurance

If your building, or contents such as kitchen equipment are damaged, commercial property insurance can help pay for repairs. Some of most common risks covered by commercial property insurance include vandalism & wind, water damage & some types, as well as damage caused by aircraft & vehicles.

Water damage caused by leaky sprinkler or vehicle driving into your shopfront would also be covered. Some restaurant owners buy separate insurance policies to cover floods & earthquakes, which are not usually covered. You can exclude building itself & cover only your equipment if you are renting space. However, it is important to check policy of landlord first.

Inland Marine Insurance

Youll need to have inland maritime insurance if you are transporting equipment or stock off premises. This insurance covers property owned by business thats transported, stored, shipped or otherwise off site. This coverage is not necessary if your property remains at business site.

Business Interruption Insurance

After loss, business interruption insurance can replace lost income. If you had to close your business to fix damage caused by storm, your income would be covered so that you could cover mortgage, lease or any loan repayments, taxes & payroll. business owners insurance policy will often include business interruption coverage.

Policy for Business Owners

A policy for business owners bundles together general liability & commercial property coverage. It often also includes insurance for business interruption. This is an insurance designed to cover small & mid sized businesses. BOP can be enhanced with additional coverages, like equipment breakdown insurance.

Spoilage Insurance

In event that your food spoils because of power failure or equipment malfunction, you can get it replaced with spoilage policy.

Coverage of Equipment Failure

Your business could have to shut down if your equipment, such as air conditioners or ovens, fails. equipment breakdown insurance includes mechanical, electrical & pressurized breakdowns, plus A/C & refrigeration units, computers & other appliances. insurance may cover costs of replacing food spoilt by equipment breakdown, as well as lost income while repairs are being made.

Food Contamination Insurance

Insurance against food contamination can cover cost of lost foods due to equipment or contamination. It can help you replace lost income if your restaurant closes.

Liquor Liability Insurance

The Liquor Liability Insurance pays for legal fees if your restaurant has been held responsible for serving alcohol. policy also pays for damage to property or medical expenses if an incident involving alcohol occurs. Liquor liability insurance covers lawsuits involving assault, battery, or damage to property by intoxicated persons & drunk driving accidents.

Commercial Auto

Youll also need commercial auto coverage if your restaurant has truck, or uses other vehicles for business purposes. This type of insurance typically covers bodily injury liability & property damage, collision & comprehensive coverage and, in some cases, medical payments coverage & uninsured drivers coverage.

Auto Liability Coverage for Hired Vehicles & Other Non Owned Automobiles

It is an example of business use if you have your employee drive their own vehicle to get supplies for restaurant. If driver is involved in an accident, your business may be responsible for any damages. Youll also need to have policy if your company rents or leases vehicles or uses vehicles it does not own.

Restaurant Insurance Cost

Your annual restaurant insurance premium will depend on your business size as well as your location & what you serve. type of insurance you require for your restaurant is also important.

Some restaurant owners may need to pay even more for commercial auto insurance. business package that includes coverage for an rented location can be as cheap as $299 per year.