Restaurant Insurance

One area in the restaurant business you do not want to skimp is insurance. Insurance can protect you and your business for a myriad of problems, from broken equipment to liability lawsuits. Depending on where you live, you will need certain types of insurance for your restaurant. You will also need to carry certain types of insurance to satisfy your bank loans and mortgage.

The most common types of restaurant insurance available include:

• Property Insurance – Protects your property in case of fire or other events. It may not cover natural disasters, such as floods or earthquakes (see below for a policy that does.) If you have any kind of mortgage on your business and/or equipment, then you should carry a property insurance policy.

• General Liability – This is the umbrella policy that protects you in the event someone slips and falls in your restaurant, gets sick after eating there (whether it was your fault or not). This is a must have in today’s sometime sue-happy world.

• Liquor Liability – Most states require that any establishment holding a liquor license carry liquor liability as part of their insurance. It helps protect you if a customer has too much to drink and drives and hurts themselves or someone else.

• Automobile Liability – If you have a company vehicle, this is a good insurance to have. It may be covered in your general liability, but always check with your insurance agent first.

• Workers Compensation – Protects you if an employee is hurt at work. Most states require that all employers carry some type of workers comp.

• Unemployment Insurance – Is for your employees who no longer work for you until they find employment.

• Life Insurance – Depending on your mortgage and financing you may need to carry a hefty life insurance policy to satisfy your lender. It is also a good idea to have life insurance, in case something does happen to you and your family isn’t left with a restaurant they don’t know how to run and bills they can’t pay.

There is insurance for just about any object, action or person out there. Here are some other types of insurance you can purchase for your restaurant. But keep in mind, these extras will cost you as much or more than whatever it is you are insuring.

• Loss of Business Insurance – If you lose sales through a specific cause, this type of policy can recoup some of the income. Keep in mind the premiums and deductible may make you break even, depending on how much you lose.

• Food Contamination Insurance - If you lose power, because of fallen power lines or a storm, and the entire contents of your walk-in and freezer spoil, this policy would pay to replace the food.

• Specific Peril Insurance – This covers many natural disasters that general liability insurance doesn’t. Events like earthquakes, floods or power outages due to either, may be covered under this insurance.

Restaurant Endorsement
Get coverage specifically designed for today's restaurant owner. Highlights of the Restaurant Platinum Endorsement include:

Water Back-up Damages—Coverage is provided up to $100,000.
Food Contamination Expense—Covers equipment cleaning expenses, contaminated consumables and resultant Business Income loss if action required by the Board of Health. The limit is $25,000 per occurrence.
Spoilage Coverage—Pays up to $25,000 for loss of "perishable stock" from a change in temperature or power outage caused by a covered cause of loss.
Damages to Customers' Autos—Covers "loss" due to direct damage to a "customer's auto" while left in the care, custody or control of your hired attendant. Up to $30,000 for any one auto and $100,000 for all autos.
Personal Effects—Coverage is increased to $5,000 at each described premises.