If you’re shopping for restaurant insurance, you want your establishment to be adequately covered. Along with the main policy, you can purchase add-ons for extra coverage. You also want to have enough coverage with your primary policy in case you need to file a claim.
The Types of Insurance You Need
As a restaurant owner, you need several different types of coverage. Most dining establishments require general liability restaurant insurance, liquor liability coverage, insurance for physical property, and worker’s compensation for employees. You may have other requirements for special coverage as well.
General Liability Insurance
General liability insurance is coverage for most basic situations. This type of coverage for restaurants protects them from customer injuries or damage to property due to neglect. If a server accidentally spills hot coffee on a patron, this coverage will pay for any medical bills up to the policy limit. If the person wasn’t injured but their pants were ruined, the insurance would pay for a replacement.
General liability pays for claims made due to damage to a rented space. A fire might break out in a rented venue where the restaurant owner is hosting a private party. The general liability policy would cover the expenses for repairing the damage. You’ll want to consider the amount based on how much it would cost if a claim is filed. A person who is injured in a slip-and-fall accident could have expensive medical bills. You may want the insurance to cover that accident instead of paying out of pocket.
Liquor Liability Insurance
If your establishment serves alcohol, you may need separate liquor liability insurance to cover claims. This policy covers situations such as a patron getting intoxicated and starting a fight with someone. The insurance would pay for the medical bills of the injured party.
This policy protects your restaurant and the people who serve your customers. If you serve someone who is intoxicated and they cause damage to property or people, the policy can pay out any claims even if it happens off the premises.
Property insurance, which may also be referred to as commercial property insurance, pays for damage to the physical components of your restaurant. If the building is damaged by a kitchen fire, the property insurance policy would pay to repair or replace the building.
You must calculate the value of the building or how much it would cost to replace it to know how much coverage you need. Consider the cost of replacing everything inside the building as well. Don’t forget about items like dishes, light fixtures, and decor. Unless you have valuable items that are insured separately, most insurance policies group these things together with a maximum amount for a payout.
If you have employees working with you in your restaurant, you’ll need to carry worker’s compensation as required by state law. Each state has its own rules about how much coverage you need. An insurance provider can help you stay compliant with your policy.
This policy pays for any medical expenses due to a covered incident. The server could burn their hand or arm if they spill a hot meal or liquid. They may hurt their back from lifting a box of equipment or a large bag of flour. Worker’s compensation also pays for any missed work due to injuries. If someone misses work because of a hurt back, they can receive part of their wages to make up for the lost income.
Find the Right Restaurant Insurance Provider
If you’re looking for an insurance provider, work with a company that understands what a restaurant or bar needs to be adequately covered. Restaurant insurance protects your business from dangerous situations that could occur.
Some establishments will require additional coverage or higher limits. A bar may need more liquor liability coverage than a formal restaurant. A cafe serving breakfast and lunch may not require the policy at all. The cost of replacement for a high-end restaurant may be higher than for a diner because of the difference in decor and furnishings.
Consider which types of insurance you need for your restaurant and how much coverage you should buy. The right policy and limits for your restaurant can protect you and your business. An experienced insurance provider will help you create the best policy for your establishment.