What You Should Know About Business Insurance For A Restaurant
No matter what kind of business you run, having the right Business Insurance is critical to protecting your company against major losses that could potentially bankrupt the business. In no other industry is this truer than in the restaurant business. Running a restaurant comes with an array of risks. From slip-and-fall injuries in the kitchen to equipment malfunctions and sick patrons to property damage, the number of risks that come with owning a restaurant is too many to count.
That’s why it’s important that every restaurant owner invests in the right portfolio of insurance products to protect the business on every level. Remember, restaurants have their own unique set of risks, needs, and intricacies, so the insurance you get needs to reflect these things in order to cover your business properly.
Let’s take a closer look at some of the important parts that comprise a healthy restaurant insurance plan.
· Commercial General Liability—Commercial general liability insurance is an integral part of your restaurant insurance portfolio as it protects your business against lawsuits from those who get hurt while on your property. For example, say a customer slips and falls on the wet bathroom floor. Or he or she gets ill after eating at your restaurant. Your commercial general liability insurance would cover your business in these types of situations, protecting you against a potentially huge lawsuit.
· Property Coverage—Insuring your property is a must. What would you do if a water pipe breaks and floods your restaurant? What if the building catches fire? Or what if someone vandalizes your restaurant? These are the types of incidents that property coverage is designed for. It will help you replace your property in the event that it gets damaged.
· Liquor Liability Insurance—Does your restaurant serve alcohol? If so, you need liquor liability insurance. Liquor liability coverage protects your business if you get sued by a customer who consumed alcohol at your restaurant and then caused injury or property damage to himself or others. These types of claims can be incredibly costly if you don’t have liquor liability insurance, and your general liability coverage won’t protect you.
· Equipment Breakdown Insurance—Your restaurant relies on its kitchen equipment day in and day out. If you have specialized equipment, like a meat smoker or walk-in cooler, you need to insure it so you can repair or replace it if it were to break down. That’s what equipment breakdown coverage is for. It covers losses due to equipment malfunctions and other equipment damage.
· Business Interruption Coverage—Your restaurant is your livelihood. If operations were to get interrupted suddenly, what would you do? Where would your income be derived from? That’s what business interruption insurance is for. If a covered loss keeps your business from operating and earning revenue, this coverage would kick in and pay the earnings you should have been making. One example of a covered loss could be a kitchen fire that forces you to close down your business until the damages are repaired. This is very important coverage that can help you stay afloat during tough times.
Restaurant insurance is no trivial matter. It’s not something you can afford to neglect or choose carelessly. You need to take the time to truly consider your insurance needs so you can acquire the right coverage to fully protect your business. Make sure you work with an insurance agent who specializes in helping restaurants and hospitality businesses get coverage tailored to their unique needs.
At Food & Beverage Insurance Agency, restaurant insurance is our specialty. We can match your restaurant with the right coverage at the right price. From commercial general liability insurance to liquor liability insurance, Houston restaurants trust us for all their specialized insurance needs.
Food and Beverage Insurance Agency: Mybarandrestaurant