All You Need To Know About Restaurant Insurance

All You Need To Know About Restaurant Insurance

Hello! Thank you for taking the time to learn more about Restaurant Insurance. My name is John M. Brown, and I am the owner of FarmerBrown.Com We are one of the largest and oldest independent insurance brokers online, specializing in helping restaurateurs with all their insurance needs.

Along with the author of this eBook, Thomas M. Hester, we have over 50 years of combined experience in helping restaurants succeed and grow their businesses. If you read the following material, you will find many keys to success that successful restaurateurs follow. The material is easy to read and contains real-world, useful advice from industry experts with years of experience. It will give you the knowledge to avoid pitfalls that many restaurateurs make.

Restaurant insurance is a complex topic, but we will try to break it down into easily digestible points that you can understand. With an understanding of this complex subject, you will be able to make informed decisions that will allow your business to flourish.

After reading this eBook, you will have the proper tools to ensure that you are making the right decisions concerning your insurance needs. As a general rule, insurance is the largest insurance expenditure that a restaurant will have. Therefore, it is in your best interest to educate yourself on the subject. The information contained in the following pages may save your business thousands of dollars. Even the best insurance agent will not know your business as well as you do. That is why educated input, provided to a knowledgeable agent, will get you the best insurance solutions.

Thank you for your time and consideration. I guarantee that you will find this information useful. I look forward to assisting you with any restaurant insurance needs you may have.

Owner, FarmerBrown.com

Table of contents

1. Do You Need Commercial Auto Insurance?
2. What Vehicles Are Covered By Restaurant Commercial Auto Insurance?
3. What Does Commercial Auto Insurance Cover?
4. How Much Does Commercial Auto Insurance Cost?
5. How Do Commercial Car Insurance Deductibles Work?
6. What is Hired and Non-Owned Auto Coverage?
7. Is Commercial Auto Insurance Expensive?
8. How Much Liability Coverage Do You Need?
9. Who Needs Commercial Auto Insurance?
10. Affordable Commercial Auto Insurance For Business
11. Things to Know Before Purchasing Your Commercial Auto Insurance.
12. What to Ask Your Insurer Before Getting Your Commercial Auto Insurance
13. How Can I Lower My Commercial Auto Premium?
14. Restaurant Valet Insurance
15. You outsource the valet parking to a valet company
16. How does valet insurance cover common risks

Restaurant Liquor Liability Insurance

1. What Is Restaurant Liquor Liability Coverage?
2. Liquor liability insurance can help cover claims of
3. How Much Does Liquor Liability Insurance Cost?
4. Ways To Save Money on Liquor Liability Insurance
5. Do I Need Liquor Liability Insurance?
6. What Is the Difference Between Host Liquor Liability Coverage and Liquor Liability Coverage?
7. Does My General Liability Insurance Cover Liquor Liability?
8. What Is Liquor Liability Insurance Called?

Business Owners Policy (BOP)

Restaurant Commercial Umbrella Insurance

1. Commercial umbrella insurance cost
2. What does commercial umbrella insurance cover?

Final Thoughts on Restaurant Insurance

Introduction:

If you own a restaurant, bar, tavern, or food truck, you are well aware of the extremely challenging circumstances you face. The post-COVID hospitality industry looks nothing like it did in 2019. From out-of-control inflation affecting food prices to the almost impossible task of hiring workers, the dilemmas of restaurateurs are unprecedented. Currently, most restaurants are barely hanging on, and many owners are closing up as the stress and complications have taken the enjoyment out of the work they were once so passionate about. Cutting costs is imperative in your restaurant just to keep the doors open. One way to cut costs is by making informed decisions about affordable restaurant insurance. If you spend a few minutes reading the following information, there is a good chance you will be able to save a few thousand dollars. In any case, you will at least gain the knowledge that your restaurant has the proper insurance it needs. So let us sit down and dig into the information that follows.

Restaurant Insurance Made Easy:

Insurance is a field rife with specific language and sometimes complicated structures. Just like preparing a recipe for the first time, it can be a nerve-racking experience. However, it is a necessity that many restaurant owners may have a hard time fully understanding without more in-depth knowledge of the field. As a result, these restaurant owners tend to go in blind and simply search for the lowest price. There are times when this may make sense. However, if you do not know what is not covered in the event of a claim, it can become a much more disastrous situation than necessary. This is true for all lines of insurance, with General Liability insurance being both the area of insurance most necessary and with the most gaps in coverage. This eBook is meant to introduce the basics of how Restaurant Insurance works, how to find the most complete policy for your needs, and how to make sure you’re spending the right amount of money in the right areas to receive the best deal.

I hope you find the following information rewarding and helpful in finding value in your insurance by making you a more sophisticated buyer. I believe that by putting some focus every few years into purchasing insurance, you will save money and many headaches. As a Restaurant operator, you must have insurance to protect your business property, take care of the people that help you run the business, and also provide coverage for your daily operations.

The topics covered in this book are:

1. General Liability Insurance
2. Workers Compensation
3. Property Coverage
4. Commercial Auto
5. Liquor Liability
6. Business Owner’s Policy for Restaurants
7. Commercial Umbrella

What coverage can general liability provide for food and beverage businesses?

Customer injuries: No matter how careful you are, accidents will happen at any restaurant. When a customer gets hurt on your property, general liability insurance will pay for everything from an ambulance ride to the cost of a lawsuit if your business is sued, and it is a covered claim. General liability insurance covers:

• Legal defense costs, including attorney fees
• Medical expenses incurred by the injured party
• Court judgments or settlements
• Funeral costs in fatal incidents

On a side note, it is important to remember that a restaurant general liability insurance policy does not cover your employees. For that, you will need workers’ compensation insurance. Keep reading to find out more about workers’ compensation.

Customer property damage:

General liability insurance also protects you when customer property is damaged. If a server spills a drink on a customer’s fur coat, your general liability policy could help pay for:

• Legal fees if you are sued
• The cost of replacing the fur coat
• An out-of-court settlement

General liability insurance can also protect your food service business from off-site incidents. For example, if your business caters a private function and your food-warming equipment starts a fire, you would have coverage from any resulting lawsuits alleging property damage. You need to check with your agent if you offer these types of services. You may need to add an endorsement to ensure you are properly covered.

Host liquor liability:

While this will not cover a restaurant that regularly serves alcohol, general liability insurance includes host liquor liability insurance. This insurance covers bodily injury and property damage resulting from alcohol served at a social function. You will have coverage at a company party where you provide alcohol or other events as long as there is no profit motivation.

Advertising injuries:

It is always possible to inadvertently copy a competitor’s catchphrase or logo. Advertising injuries are covered by general liability insurance. This includes:

• Copyright infringement
• Defamation, both libel and slander

If you use advertising or promotional materials to attract customers to your restaurant, you will want to make sure your restaurant general liability insurance policy includes this protection.

Cost of Restaurant General Liability Insurance:

The average general liability insurance costs around $1,000 per year or around $90 per month, depending on the size, amount of sales, and locations. Most policies are between $800 and $3,000 annually. At FarmerBrown.com, we can get you an exact quote the same day if you are able to provide some basic information either online or over the phone.

Workers Compensation:

What Does Workers’ Compensation Insurance Cover?

Workers’ Compensation Insurance provides benefits to employees injured while performing duties required by their job. These benefits are provided no matter if the employee or employer was at fault in causing the injury. Workers’ Compensation Insurance coverage means that injured workers need not sue their employer to obtain compensation. Workers are generally eligible for benefits even if their own carelessness contributed to their injury. For example, a kitchen worker could collect benefits for an injury they sustained falling off a ladder, even though the injury occurred because they failed to use the proper safety measures before climbing the ladder.

State law determines how and what benefits are available to an injured worker. Most State Workers’ Compensation laws typically provide the following types of benefits:

• Medical Coverage: Includes doctor visits, hospital care, prescription medications, physical therapy, and any other medical treatments deemed necessary.

• Disability Income: Provides a replacement of income lost when workers are unable to work due to an on-the-job injury. The amount and duration of benefits depend on whether the disability is temporary or permanent, and partial or total. This is usually a percentage of wages and is generally around 2/3 of the injured workers’ weekly wages in most States.
• Job Rehabilitation or Retraining: This provides support and training for workers who cannot return to their prior occupation to learn a new skill based on their current capabilities.
• Death Benefits: If a worker is killed on the job, their spouse and minor children are entitled to payment of a death benefit.

To put it all in a nutshell, all States give injured workers similar types of benefits, but the amounts they pay vary greatly from State to State.

What Injuries Are and Are Not Covered by Workers’ Compensation Insurance?

Workers’ Compensation Insurance covers injuries that result from an accident at work. There are certain situations where Workers’ Comp Insurance will not provide coverage. The biggest exception to coverage is injuries that happen because an employee is intoxicated or using illegal drugs. Coverage may also be denied in situations involving: