The next year will mean a number of changes for businesses and employers. Property taxes are on the rise, health insurance protections are undergoing a major institutional restructuring and insurance premiums will have to cover owners from a myriad of growing risks. For protection in a changing economic environment, restaurant owners with special risks need to consider purchasing certain insurance products which will save them money on their current policy and serve them best in the event of an emergency or lawsuit.
What kind of insurance do restaurants need?
Restaurants have unique exposures which require some specific insurance coverages to protect you and your business from damaged or stolen equipment, floods, fires, major losses of income and other liability lawsuits from customers and employees. And there are certain policies required by the state of California for particular restaurant services. With the help of an agent you can trust, your business can navigate a myriad of economic pressures to bounce back with success. Does your restaurant have coverage from every angle?
A typical restaurant insurance policy contains workers’ compensation, general liability coverage for accidents and basic property coverage for disaster damages. However there are some facets of your business operation you may bave not considered – the size of your building, type of cuisine you serve, special equipment you use, drivers for delivery services, alcohol, specialty foods and more.
Whether you operate a small bistro or a large chain operation, you might want to consider coverage for the special contents and operation of your establishment. Build a restaurant insurance policy with provisions for your fridges, ovens, serving utensils and dishes and anything that might need replace. Recover your losses from emergency closures and protect your workers from injuries.
Suggested options for restaurant insurance:
General Liability – If a customer has a slip and fall or is harmed by products offered by the restaurant, general liability insurance would pay for such claims. Speak to your agent about building a policy based on your square footage instead of sales volume to save money.
Liquor Liability – If you serve liquor in your establishment, then you may be required to purchase liquor liability. Protect your business from a customer who causes harm to themselves or someone else as a result of drinking.
Food Contamination Insurance – If you are unable to protect your food from spoilage as a result of a covered power outage this policy would pay to replace the food.
Delivery Driver Auto Insurance – If your restaurant has a delivery service then you may need to get special coverage for drivers when they are on the clock. There policies may help to protect yourself from lawsuits as you protect the property and life of your employees.
Flood Insurance – If you want to protect your restaurant from the damage and disruption a few inches of water can cause, then you may want to purchase an additional flood insurance policy. You will need the extra protection for your property and equipment if you live in a flood-zone or area prone to storm surges. For properties not in a flood hazard zone there are lower preferred-risk rates available.
Property Insurance – If your restaurant owns or rent the property on which you operate, you may need property insurance for your building and/or equipment. Typically property owners carry this insurance, but tenets may want to protect themselves from loss by purchasing some form of property insurance to cover the business’ property within the premises. This will also protect the items which might be easily stolen.
Business Income Insurance – If your restaurant is forced to shut down as a result of an emergency – fire, earthquake damage, extended power outages, etc – then you may be able to recuperate the daily operating profits with business income insurance. Be sure to have enough coverage to support your business for at least a year. And be prepared to wait – some policies require you record 3 days of losses before coverage begins.
Workers’ Compensation – If you own a restaurant with any number of employees in California, then you are required by law to purchase workers’ compensation coverage. Insurance premiums are set a percent of your payroll, however you can save money by remembering to exclude reported tips from your payroll report.