| NYC Business Group
How to Protect Your Restaurant with the Right Insurance
Protecting your restaurant with the right insurance is highly recommended if you are in the foodservice business. Do you know how to choose the right insurance policy? Which insurance policy have you purchased? Are you contemplating changing the policy you already have? These are some of the questions you should keep in mind as a restaurant owner.
What Insurance Does a Restaurant Need?
An insurance policy for a restaurant is essential because it helps protect foodservice businesses from specific risks. Foodservice businesses share certain risks which can be costly if they are not covered. Ergo, whether you own a pizza shop, deli, diner, café or fine dining restaurant, you should consider buying restaurant insurance. You will protect yourself from potential financial loss and enjoy peace of mind knowing that everything is under control. We have competative markets for restaurants, call us today for a quote!
What Should the Insurance Cover?
If you buy insurance for your restaurant, you will get the following coverages:
- Property insurance – here, you will get coverage for the building itself and the contents inside in case of damages.
- Liability protection – Liability protection covers your business's responsibility for the harm it might cause to others. Therefore, you will not be liable for the damages your company can cause
- Business interruption insurance – with interruption insurance, you will not incur any losses if your business is interrupted for some time. If you encounter a fire accident that interrupts your business, business interruption insurance will cover any losses, including paying the employees and rent. If you purchase Extra Expenses, it can cover the cost of running your business if you are relocating. We offer many types of business coverages, and packages allow our agency help you today!
Worker's Compensation Insurance
In some states, worker's compensation is a must. This insurance policy covers medical costs and a portion of lost wages for employees injured on the job or sick. For instance, if one of your employees slips and fall while working in your restaurant and he is unable to work, worker's comp covers the medical bills and a portion of their wages until they start working again.
Any Additional Coverage Needed?
It is essential to understand that restaurant insurance cannot cover all the possible risks. Therefore, depending on the type of your restaurant business, you may need one or more of the following policies:
- Liquor liability – you should have liquor liability coverage if your restaurant serves alcohol because it protects you from any potential damages or liability.
- Spoilage – this covers the property's value spoiled if the heating or cooling equipment fails or breaks down.
- Mechanical breakdown – since you have mechanical equipment, for example, boilers and refrigeration systems, you should buy mechanical breakdown coverage. This policy protects against any loss if there is a mechanical or electrical breakdown.
- Employment Practices Liability Insurance (EPLI) – this policy protects you against claims filed by current, former and prospective employees against wrongful termination, sexual harassment and discrimination. Sometimes, EPLI can protect you against discrimination claims made by customers.
- Cyber liability – cyber liability insurance is a good investment because cyber-attack and data breaches are common. The policy helps you pay for the expenses to recover data in case of a cyber-attack or data breach.
- Business vehicle insurance – if you have vehicles used to make deliveries or pick up supplies, you need business vehicle insurance. Your personal auto insurance cannot provide coverage if the car is primarily used for work/business. You should have business vehicle insurance to get liability protection for trucks, cars, or vans used for work.
- Outdoor signs – advertising your restaurant with outdoor signs is vital. However, since these outdoor signs can cost thousands of dollars, you should protect them with outdoor sign insurance. Any outdoor sign that's not attached to your restaurant building is prone to damage or theft! Therefore, consider purchasing outdoor sign insurance instead of paying out of pocket.
It is challenging to determine the right insurance for your restaurant. However, if you research well and seek professional help, you can make the right choice. Always compare insurance policies from different insurance companies to get value for money. Finally, if you are not sure about anything, seek professional advice from an experienced insurance agent to avoid making mistakes. We will guide you and help you understand the coverages you need, and compare companies with you!