What Owners Need to Know about Vermont Restaurant Insurance

Let’s start with the basics. What is restaurant insurance? The truth is that Vermont restaurant owners can’t buy a single insurance policy that will cover all their needs. Restaurant insurance is the name given to a bundle of different policies that help hedge your bets against a wide range of threats, like:

• Building damage

The state of Vermont doesn’t mandate any specific types of insurance that restaurant owners must carry across the board. It will vary depending on your situation, the type of restaurant you own, whether you serve alcohol, and other factors (like whether you own the building outright, have a mortgage, or lease it).

However, don’t let the lack of a mandate confuse you. Insurance is a good thing and it’s the only way to protect your investment.

In Vermont, while general liability insurance isn’t legally mandated, it’s something you shouldn’t overlook. Note that if you intend to apply for a liquor license, Vermont does require that you have proof of liability insurance. What does it cover?

This coverage protects you from claims related to third-party bodily injuries, property damage, and advertising injuries.

Here’s another important policy. In Vermont, all employers with one or more employees are legally required to have workers’ compensation insurance. So, if you’re running a food truck and are the only employee, you may not need this legally (but it’s still a good idea). However, if you have a single employee, whether that’s a cashier, cook, or dishwasher, you’re required to carry workers’ compensation insurance.

This coverage ensures that if an employee is injured on the job, their medical expenses and lost wages are covered.

Vermont is no stranger to severe weather, and those threats are pretty diverse, considering the state’s varied geography (mountains, coastal areas around Lake Champlain, etc.). Commercial property insurance protects your building, equipment, and inventory from those threats, protecting your property (and investment) against risks. Think of things like:

Unlike many other states, Vermont doesn’t require restaurant owners to carry liquor liability insurance. General liability insurance is usually enough. However, it’s a smart idea to buy coverage anyway.

It covers claims related to alcohol-induced incidents, like if a patron causes harm after being overserved. Plus, buying coverage now is really just future-proofing your business if (or when) the state does start requiring it.

Unexpected events can put the brakes on your business pretty fast. We saw that with the 2020 pandemic, but it doesn’t have to affect the world to affect your business. Severe weather, civil unrest, and even local outbreaks of diseases can do it.

In addition to what we’ve already discussed, you may want to consider additional policies, like:

• Commercial auto insurance