If you are interested in starting a restaurant, you should protect your business from potential risks. Restaurant owners have to deal with common risks in day-to-day operations, including natural disasters, accidents, and unfortunate incidents. Prioritize getting insurance for restaurants as it helps protect your business against claims of property damage and bodily injury that can cause financial loss. Here are the different types of restaurant insurance you can purchase for your business:
General liability caters to multiple unspecified risks common to restaurants, like slips, falls, or burns. Your business is liable if any of your customers experience bodily injury or property damage resulting from such risks. The insurer will pay legal fees, settlement, medical bills, and repair costs. This insurance type is mandatory for all business types to obtain licenses and operations permits.
Restaurant employees face numerous risks from working with heavy equipment, sharp objects, and open flames. In their line of work, they may suffer serious injuries, which your business will be liable for.
Workers’ compensation insurance helps protect your business from financial loss in the event of a serious injury. Your insurer will cover medical and rehabilitation costs while injured employees recover. They pay them wages for their bills until the employees can get back on their feet.
Commercial Property Insurance
Unfortunate incidences like fires can put you out of business until you can repair your building and replace property. Repair and replacement costs can be expensive, affecting your restaurant’s customer base. Taking out a commercial property policy can help you cover repair and replacement to help you get back on your feet quickly.
Credit cards and online payment options are common for financial transactions. If you use such methods within your restaurant, your system maintains a customer database. You should buy cyber liability insurance to protect yourself against liability in the event of data breaches.
Data breaches release confidential customer information, so the customers might be eligible for damages should they choose to sue. The cyber liability coverage will help you manage legal costs and settlements, preventing financial loss to the business.
Business Interruption Coverage
Your restaurant might have to close for numerous reasons, like pipe bursts that damage furniture. While the business might remain closed for some time, you still have to deal with expenses like rent, payroll, and paying suppliers. Business interruption coverage can help you take care of such costs until you can return to business.
Some insurers offer the opportunity to prevent loss of income within your policy terms. In such a case, they can find you a temporary location to operate from while your original site gets repaired.
Some clients can get sick from eating your restaurant’s food. Illnesses might result from poor food handling or storage, causing your food items to have illness-causing bacteria. Bacteria like E. coli can hurt customers that consume your food and will likely force you to suspend operations, investigate, and deal with the problem.
Food contamination insurance helps your business prevent financial losses in such cases. Your insurer will cater to equipment cleaning costs, stock replacement, and help recover lost income from halting operations. Depending on the terms of your policy, your insurer might help you advertise to rebuild your restaurant’s reputation.
Liquor Liability Insurance
Many restaurants sell alcoholic drinks to serve their customers’ needs, but intoxicated customers can act irrationally. Such actions can jeopardize operations, causing bodily injury to other patrons or property damage. Since they are customers at your establishment and you sold liquor to them, your business may be liable for their actions.
Purchasing liquor liability insurance protects your business from financial loss. Your liquor liability policy covers all legal costs, settlements, medical rehabilitation for injuries, and repair costs for third-party damage. Some states mandate that your business have liquor liability to get a liquor license if you plan to sell, store, or manufacture alcohol.
Get the Best Insurance for Restaurants
Opening a restaurant is an exciting and lucrative venture but comes with multiple responsibilities and risks. Such risks and responsibilities might cause financial loss to your enterprise, so you need adequate coverage. Getting insurance for restaurants can help you enjoy coverage in unfortunate events, allowing you to continue with operations.