Although it might not be the most glamorous part of owning a restaurant, it is pivotal to success. Having the right insurance coverage can help a restaurant owner flourish in the food industry. Restaurant insurance is designed to safeguard the business from various dilemmas. There are different types of restaurant insurance policies, and you should research to ensure that you’re choosing the right policies. First, you need to consider the type of restaurant you’re starting, its location, and other components before you pick a policy that suits your business. In this post, we’ll explain types of restaurant insurance, and offer other helpful tips. Let’s get started!
Common Restaurant InsurancesTo choose the right insurance, you should understand the various types of insurance exist. Here are some of the most common restaurant insurances:
- Property Insurance: This insurance covers expenses due to accidents, like a fire in your restaurant or another incident that causes major damage. In addition, some insurances offer coverage for natural disasters, but not all of them. If you live in an area that is prone to hurricanes, earth quakes, or other natural disasters, you should research insurances that provide coverage for these events.Ultimately, if you have a mortgage on your property, you should always have a property insurance policy.
- Liquor Liability: Most restaurants who have liquor license are required to have a liquor liability policy as part of their insurance. This is not a necessity in some states, but most of them have made it an important part of insurance plans.Having a liquor liability policy will give you peace of mind as a restaurant owner. If a customer drinks too much and hurts someone, this liability will protect the future of your business.
- General Liability: If a minor accident occurs at your restaurant (for instance, a customer slips and falls), general liability insurance can protect your business. Unfortunately, people can try to blame you for minor accidents, even if your restaurant isn’t at fault. That’s why it’s imperative that you invest in a general liability policy.
- Life Insurance: If you have mortgage property for your restaurant, then having life insurance could be important in the future. It can be prudent to have a life insurance policy, since it could help save your business, and ensure that your family is taken care of.
Other Helpful Restaurant InsurancesThe restaurant insurances mentioned in this section will cost you a little more money, but it could be beneficial to have the additional protection.
- Loss of Business Insurance: Losing sales can happen, even to successful restaurants. Still, if you need extra help, having a loss of business insurance policy could be valuable.
- Food Contamination Insurance: Food can get contaminated due to several reasons. For instance, a power outage could cause refrigerators to operate without power, causing food to spoil. Thankfully, if you have Food Contamination Insurance, you’ll be able to get the food replaced, as long as the contamination wasn’t your fault.
- Specific Peril Insurance: This type of insurance covers the damage caused by natural disasters. As we previously mentioned, general liability insurance could cover damage from a natural disaster, but some don’t. Due to this, you might need Specific Peril Insurance.