Insurance Basics for Restaurants
Insurance policies are not one-size-fits-all. Different types of businesses will have different insurance needs. The needs of a restaurant are different from the needs of a small office. Restaurant insurance is appropriate for a wide variety of businesses including fine dining, family-style, diners, fast food, bars and taverns, coffee shops, cafes, delis, pizza places, sandwich shops and more.
As a restaurant owner, there are several important insurance coverages that you should have in order to protect your business from the financial loss of having a claim.
If somebody is injured on your premises or becomes sick from your food, General Liability will cover that. Some examples of General Liability claims are if a customer slips and falls, a customer gets sick from eating food.
Property insurance covers the building, the Business Personal Property, and Business Income from losses such as fire, theft, break-ins, etc. Business Income and Extra Expense will help protect your business in the event that you must relocate due to a loss, or lose income due to a loss that prevents your business from operating. Policies should include Equipment Breakdown coverage
This coverage is mandatory in California. It pays for injury or illness to an employee that is related to their employment and job duties. Workers Compensation will pay medical bills and lost wages for employees injured and unable to work.
For restaurants with owned vehicles, for catering or delivery, auto insurance is important. Company vehicles are usually not able to be covered under a personal auto policy.
Food Contamination – Business Income
In the event of a power outage, food in the refrigerator and freezer will spoil, which can be a large expense for a restaurant unless they have this coverage. This coverage will cover the exposure of spoiled and contaminated food due to a power outage.
For bars and taverns, and any restaurant serving liquor and beer, Liquor Liability is a necessary coverage. This coverage is for if an intoxicated customer damages property or injures somebody on your premises.
At Fixated Financial and Insurance Solutions, Inc., we have multiple restaurant programs that provide tailor-made coverage to protect your business. Limits and coverages can be added to provide the exact coverage that you need. We can provide BOP, Package, and monoline coverages for your restaurant for General Liability, Property, Auto, Workers Compensation and Liquor Liability. We can also provide insurance for Employment Practices Liability and Cyber Liability. Contact us today to speak to an agent for a review of what your insurance needs are and to learn how we can help.