Anyone who is in the process of opening a restaurant is already going through so many important things to do on their checklist that choosing insurance can seem like a daunting task. There are many things to consider ensuring that your choice allows your business to function smoothly, and supply chain issues since the pandemic have already made vital operations incredibly challenging on a day-to-day basis. Serving alcohol and making deliveries all pose their unique risks, and so does temporarily getting into someone’s vehicle during valet duty.
Here are some of the various types of restaurant insurance coverage that will offer you protection for everything ranging from “sudden to standard” occurrences during business.
Commercial Property Insurance will have to pay for a complete rebuild or necessary repairs if your building or its contents undergo damage by a covered loss. Destructive elements such as wind and fire, smoke, hail, vandalism, and flooding along with damage from aircraft are all elements that this type of coverage can address. Earthquakes and floods are typically not covered, as you can find separate policies for these risks. If you are renting your restaurant space, you can often choose policies that just cover your equipment, but simply contact us here at the Alexander agency first, and we’ll go over everything pertinent with you.
Inland Marine Coverage provides coverage for any inventory equipment that you transport off your premises. This type of coverage is there for business property that is stored off-site, shipped, or otherwise transported. If your establishment focuses on dining in and your property stays at your business location, you probably will not need this form of insurance.
Business Interruption Insurance will come to the rescue in terms of crucial lost income after you undergo a covered loss. If you’re forced to shut down operations to cover damage from a major storm, business interruption insurance would pay for your lost income so you could take care of your lease or any loan payments, as well as your dire need of employee payroll. Business interruption insurance is very often included as a component of your standard business owner’s policy.
Business Owner’s Policy includes your general liability insurance and commercial property insurance in a conveniently bundled option. Often this type of coverage includes business interruption insurance and is designed for small to mid-size operations. You can also add on coverage such as equipment breakdown for other events you may encounter while you’re doing business.
Equipment Breakdown Coverage will assist you if your equipment, such as the oven or the air conditioner fails, forcing your business to cease operations. This type of coverage also assists with electrical, mechanical, and pressurized equipment breakdown as well as air conditioning units, refrigeration, and computer systems. If a refrigerator happens to fail overnight and you must dispose of a large amount of your food, your insurer will pay for you to repair your refrigerator and replace the food that was tainted or spoiled.
Commercial Crime Insurance provides financial protection from losses caused by robbery, burglary, theft, fraud, or other crimes. The coverage will kick in and thankfully cover crimes committed by your very own employees, or crimes committed by those outside of your business. Since businesses that serve food typically handle large amounts of cash and employ people from all walks of life, commercial crime insurance is a very viable consideration.
Liquor Liability Insurance could be an excellent form of protection for restaurants that serve alcohol and see a customer indulging too much. If a customer leaves your restaurant after having too much to drink and causes an accident or starts a fight and injures themselves, you could be legally liable. Many states have “dram shop” laws in place that are tough on businesses when this happens. Liquor liability insurance will cover any claims that are a result of the actions of customers to whom your businesses may accidentally over serve. If you signed a commercial lease, your landlord may require you to prove this type of coverage.
Cyber Liability Insurance can cover financial losses that result from hacking, viruses, data breaches, and attacks that focus on denial of service. Since restaurants require credit card transactions to flourish, the online systems that you are using for orders may provide your guests with wireless network access that leaves you susceptible to imminent danger and fraud.
Employment Practices Liability Insurance is there to protect your business against lawsuits by current or former employees who are eager to claim mistreatment. Harassment and discrimination can show their faces in many forms these days, and whether the incident is true or not, it happens more than many people realize.
Factors for Your Restaurant Insurance Pricing:
The price that you pay for restaurant insurance will vary based on the type of coverage that works for you, and how risky your business is deemed by your provider. Consider factors such as:
- Type of food industry
- Number of employees
- Size of your operation
- Your detailed claims history
Businesses with higher risks will have higher premiums than those who do not. As you increase the limits of your insurance your premiums will also rise, making it a bit more difficult sometimes to be in your best interest because after weathering a few years in business, you may know that it is needed. If serving up excellent eats has long been your passion, we’re standing by to assist you in any way we can. Contact us today at the Alexander Insurance Agency of Saint Charles, where we can closely assess your mouth-watering base of operations and the plan that works for you!