One thing is shared among all businesses, irrespective of what they deal in, the urge to run a secure business. One of the many ways to do so is to buy insurance. Restaurants, too, should have insurance. No matter how big or small your venture is, what format you follow (whether it is a take-away of a big restaurant), never ignore buying insurance.
The restaurant business is challenging to handle and comes with its fair share of hurdles. You have to maintain good relations with several stakeholders and strive to perform the best. However, like all businesses, this one too has risks, and insurance acts as a safety belt to protect you and keep you buoyed in case of problems.
Who Needs Food Insurance?
- Cafes/Coffee Shops.
- Fast Food Restaurants
- Ice Cream Shops
- Fine Dining Facilities
- Full-Service Restaurants
- Pizza Shops
In this article, you will learn the various types of insurance that can save you from financial loss.
* General Liability Insurance
It protects your restaurant business against legal expenses and other fees related to lawsuits that may arise if a guest suffers bodily injury or there is property damage at your establishment during its working hours.
For instance, someone gets injured after slipping on the floor and gets a concussion, or one of your staff accidentally spills a hot liquid on a guest's hand, leading to burns. In such circumstances, the physical, medical, and psychological damages will be covered by this insurance.
* Liquor Liability Insurance
If your restaurant offers alcohol, buying liquor liability insurance is of prime importance. It helps to cover legal, medical, and property damage costs when an intoxicated person causes harm to something or someone. In fact, it is essential to get a liquor license.
A drunk guest may hit another guest, or hit his own head on a table, or break glassware. The other guest or the self-harming guest may file a lawsuit. At such times, this insurance can significantly decrease your risk.
* Restaurant Auto Insurance
Commercial auto insurance aids in covering vehicle repairs if you or one of your employees are found to be guilty of a vehicle accident. The mode of transport used maybe a company vehicle, the employee's own vehicle.
Take, for example, your employee goes to pick some items for the restaurant or delivers something to a customer. On the way, he gets involved in a car accident, and it turns out that he is responsible for it. What do you do then? Repair charges are hefty, and so it is best to use your auto insurance.
* Restaurant Property Insurance
Business property insurance helps to cover the replacement cost of things inside the building or the building itself if an unexpected occurrence takes place.
As an example, you can think of a situation in which a pipe bursts and your newly decorated restaurant is wholly destroyed. Break-ins and fire are other potential hazards you may face, and if your property is covered by an insurance policy, you can save yourself from a huge expense that might as well put you out of business.
* Workers Compensation Coverage
Workers' compensation insurance pays for lost salaries and medical costs when an employee suffers from illness or injury while on the job. Talk to your insurance agent to know in detail about the policy's norms. The insurance is helpful for both you and your employee.
Consider that one of your staff burns his hand during dinner rush hour. You will have to pay for the medical and rehab care if you are not covered by the workers' compensation coverage. If the employee is affected seriously, the insurance can also cover long-term disability expenses.
* Loss of Income Insurance
The loss of income insurance is a backup plan when your business is closed owing to a claim, and you cannot operate it. This means you cannot serve customers and are unable to generate income, which can cause you trouble. With the insurance in place, you can carry on with the expenses falling under the policy, such as taxes, payroll, and more.
* Food Contamination Insurance
Food contamination insurance aids in covering costs when your food is mishandled, stored in an improper manner, or carries germs.
If your food makes people unwell, the consequences are your establishment will be closed for inspection, and you will lose income. With a policy, you can pay for the expenses to get clean equipment, a well-maintained setup, and make up for the lost income during shutdown.
These are the significant kinds of insurance your restaurant must-have. Indeed every restaurant is different, and its insurance needs will vary depending upon its format, size, and many other factors. Get in touch with an experienced insurance agent to learn about the types of insurance your restaurant will require.
How much can restaurant insurance cost?
Restaurant insurance costs depend on the risks that your restaurant business faces, like:
* Type of restaurant
* Location of the restaurant
* Payroll and employees jobs profile
* Types and Number of vehicles used at work
Thanks a lot for reading the article. If you have any questions, please message [email protected]