Restaurant Liability Insurance
If you own a restaurant, you need an insurance policy that provides the best coverage to give you peace of mind that your business is protected. This will allow you to focus on providing your diners the best experience possible. Welcome to our tutorial today in which we will talk about Restaurant Insurance.
What type of coverage do you need for your restaurant?
Property insurance covers you in case of fire or burglary within your premises. Property damaged or lost in this way will be compensated, helping you avoid major losses and be able to rebuild your business.
If you rent the establishment, you need to talk to your landlord about the contract specification regarding property insurance and determine who will be responsible for what. But if you own the building, it’s always a good idea to ensure it to the correct amount of replacement cost in case of a major loss like a fire.
Personal Property Coverage
Also, insuring your personal property will help to rebuild your business in case of loss. It will cover you for what´s inside your Restaurant in case of peril, in other words, you will have the coverage for your tables, chairs, kitchen equipment, etc. Remember to take pictures of your items and make sure you have a clear idea of the price so you can get the appropriate coverage for it.
General Liability Coverage
This applies to third parties within your premises such as customers. If they get hurt while in your restaurant, or gets food poisoning , they are liable for compensation. To protect yourself from this financial cost, a general liability cover is a must-have.
Liability insurance will take care of your defense and settlement expenses.
Liquor liability insurance
Most restaurants serve alcohol separately. If you serve alcohol at your establishment, you need a liquor insurance cover in addition to your beer or liquor license.
So, if you are selling alcohol at your establishment you will need this coverage to protect you against the actions or eventualities caused by intoxicated people on your premises. This policy will be based on your gross liquor sales and the coverage limits you need.
Now, nobody likes to think about the idea of having a dishonest person working for you, but unfortunately, it happens. No one is exempt from suffering a theft, that´s why we advise you to not disregard this coverage to protect your investment and in the worst-case scenario be able to recover what you lost due to a dishonest person.
Food contamination insurance or Spoilage Coverage
Since restaurants buy food in bulk, they are heavily reliant on refrigerators and freezers to keep the food fresh. Power loss for long hours may cause these foods to go bad, or causing losses. Food contamination insurance compensates the owner in the event of such a scenario, eliminating that genre of loss as a part of the restaurant’s financial vulnerability.
Business interruption insurance, also known as business income insurance
is a type of insurance that covers the loss of income that a business suffers after a disaster. These amounts can be significantly larger than the initial claim itself. Take for instance a small kitchen fire that damages a small portion of your kitchen. The damage claim may only be $50,000 but your restaurant maybe closed for months as a result of clean-up and repairs.
The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
It differs from property insurance in that a property insurance policy only covers the physical damage to the business, while the additional coverage allotted by the business interruption policy covers the profits that would have been earned.
This type of coverage is not sold as a stand-alone policy but can be added to the business property insurance policy.
The following are typically covered under a business interruption insurance policy:
- Profits: Profits that would have been earned (based on prior months’ financial statements.
- Fixed Costs: Operating expenses and other costs still being incurred by the property (based on historical costs).
- Temporary Location: Some policies cover the extra expenses for moving to, and operating from, a temporary location.
- Extra Expenses: Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operation while the property is being repaired.
We are a professional insurance broker that specializes in restaurant insurance. With a history of providing comprehensive coverage for the restaurant industry, we have the ability to craft a unique policy that covers all your insurance needs.
Having a productive and profitable restaurant is demanding. You need the best equipment, the best personnel, and the best insurance. We offer total restaurant insurance solutions, so you can concentrate on meeting the needs of your customers. We work closely with you to design the right insurance program to fit your needs. The professionals at Farmer Brown can help you to navigate the insurance maze as your coverage becomes more complex.
Put our experienced team to work to help you identify your exposures and how to best address them. Obtaining this coverage is not expensive and it´s smart to protect your investment, so get a good Restaurant Insurance now
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