NYC Insurance Blog

Ultimate Guide to Restaurant Insurance – Everything You Need to Know

Opening a restaurant can be a dream come true for you. However, it is important to protect your investment and employees before opening a restaurant. Restaurant insurance insures all types of hospitality businesses, including bars, delis, pizzerias, nightclubs, food trucks, taverns, caterers, and entertainment venues. Although it might seem straightforward, getting the right insurance is not a walk in the park. A restaurant insurance offers financial protection for your business, staff, and customers in the event of accidents, lawsuits, revenue loss, fires, etc. It is essential to understand that no one insurance policy is referred to as 'restaurant insurance.' Instead, restaurant insurance refers to a bundle of insurance policies to protect your restaurant business from risks it might encounter in the future. Continue reading to understand more about restaurant insurance.

What You Should Consider Before Buying Restaurant Insurance

Typically, some factors determine the type of insurance your restaurant needs. Ergo, before you purchase restaurant insurance, consider the following factors:

• Restaurant's physical location 
• Restaurant's operations or the type of services you are offering
• Number of employees
• Additional services, for example, hiring equipment or vehicles for delivery

What Type of Restaurant Insurance do You Need?

General Liability Insurance (Commercial Liability Insurance)

General liability insurance covers legal costs, medical expenses, and property damage if customers or other people you do not employ in your restaurant make injury claims against you. Ideally, many people move in and out of a restaurant, and anything can happen, ranging from food poisoning or slip and falls. General liability insurance also includes professional liability insurance. For example, suppose one of the servers served food to a customer with an allergy, and the customer ended up getting sick and missing work. In that case, general liability insurance can offer financial protection. 

Worker's Compensation Insurance

Worker's comp helps protect your business if an employee is injured, sick, or dies from a work-related incident. The policy can help cover medical expenses, lost wages, legal fees, and sometimes funeral expenses. In some states, business owners must purchase worker's compensation insurance if they have more than one employee.

Business Owners Policy (BOP)

Property and liability insurance combines commercial liability insurance and your business property coverage. Therefore, with BOP, you get protection for the space you lease, the building you own, and any other property needed to run your restaurant business. With a business owner's policy, you can get additional coverage, including business interruption, lost income, and costs incurred before your business resumes, for example, renting a temporary location to continue running your business. Let us find the right Business Owner's Policy for You!

Commercial Auto Insurance

The policy protects drivers and company-owned or leased vehicles from damages incurred when running business operations such as catering or delivery. Commercial insurance can cover property damage or medical expenses incurred when a business-owned vehicle is involved in an accident.

Liquor Liability Insurance

Consider purchasing liquor liability insurance if you sell, serve, or distribute alcohol in your restaurant. The policy provides coverage for property damage, legal fees, settlements, and bodily injury caused by an intoxicated customer who was sold or served liquor in your establishment. Although you can purchase a liquor liability license as a standalone policy, you can also include it as an add-on (endorsement) in your general liability insurance. 

Cyber Insurance

You can purchase cyber insurance as an add-on to your general liability insurance to protect your business from cyber-attacks, including credit card fraud, hacks, and breaches. 

Umbrella Insurance

Umbrella insurance is a good investment if you want to add another layer of protection to your existing insurance policies. All insurance policies have a limit (the maximum value it will cover in case of an incident), even umbrella insurance. However, umbrella insurance coverage starts when other insurance policies hit their coverage limits. You might pay out of pocket without umbrella insurance if your policy hits its coverage limit. It is essential to talk to your insurance agent to determine if you need to purchase umbrella insurance. Businesses vary, and so does the coverage. Therefore, take your time to determine the type of coverage you should purchase and seek professional expertise when unsure about anything. Having Extra Protection for your restaurant will only help, let us give you a quote today!

Remember, when shopping for insurance policies, always purchase what you need, consider your deductible, and inquire about discounts. With restaurant insurance, you can have peace of mind knowing that your business, staff, and customers are always protected. Give us a call today to get a Free Quote, or Review your policy!

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