There are specialized insurance coverages that restaurant owners need to make sure they have in order to protect themselves properly. Here are some of the coverages restaurants need included in their insurance policies.
As a restaurant owner, you most likely already have General Liability… if you don’t please stop reading and go buy it immediately! If you serve alcohol you also need Liquor Liability. If a customer becomes intoxicated, you may be held liable for their actions, including acts of violence and property destruction even after they leave your establishment.
Food Spoilage Coverage
If you already have Property Insurance, which covers your furniture, appliances, inventory, etc., you need to make sure that Food Spoilage is not excluded. If it is excluded you can “buy back” this coverage. This protects you in case of a power outage which in turn causes your food to spoil.
Equipment Breakdown Insurance
If a piece of equipment in your restaurant suddenly broke down due to some unexpected event, equipment breakdown insurance could cover resulting costs. For example, if a walk in freezer stopped working because of a power outage, equipment breakdown insurance could cover the cost to replace the unit.
Hired and Non-Owned Vehicle Liability
Do your employees use their cars to run errands, deliver food, or anything else business related? Then you need to obtain Hired and Non-Owned Vehicle Liability. If your employee causes an accident, your business is in jeopardy of a law suit, even if your employee has their own insurance.
Business Income and Extra Expense Coverage
If your restaurant suffers a major loss and needs to close down for repairs, this type of policy is very important. This coverage can help in a variety of ways including paying for continuing expenses, such as mortgage or rent, payroll, relocation expenses if you have to move to a temporary site and other expenses that go above and beyond your normal operating costs.
Want to learn more?
Make sure your restaurant is covered with the proper insurance. At Front Street, we work with more than 50 commercial insurance carriers to create insurance coverage focused on the needs and risks of your restaurant. We are here to help and can work up a comprehensive quote for your business. Email a representative today, or give us a call at 352.327.3178