Between sharp knives, hot surfaces and food borne illnesses, restaurants face many more risks than most businesses. Facing a lawsuit is a headache that restaurateurs just don’t need. If you’re searching for insurance to cover my food business, you should know that you have a wide range of industry-specific options.
Of course, you want to start with a good business owners policy that provides general liability, business property, business income and equipment breakdown insurance. For greater protection, your food business may want to consider these additional policies.
1. Liquor Liability Insurance
This type of insurance may be required by the state to obtain a liquor license. It provides coverage for legal fees and settlements in case your restaurant serves alcohol to a customer who harms others. It may also pay medical costs for victims. Dram shop laws hold your restaurant liable for accidents that occur if you sell alcohol to an intoxicated person. Only six states, Delaware, Kansas, Maryland, Nevada, South Dakota and Virginia, do not have dram shop laws.
2. Commercial Auto Insurance
If your business transports food or equipment, this policy covers accidents by vehicles owned by your business. Some policies cover employees who drive their own vehicles on company time. You should think about how you use your own car and company vehicles for your business. If you are in an accident on company time, it opens your business up to a lawsuit.
3. Workers’ Compensation
Most states require businesses to carry workers’ compensation insurance to pay for medical bills and lost wages when an employee is injured on the job. With the risks associated in the food industry, your business shouldn’t risk its finances by not having a good policy. If you are sued by a worker, your workers’ comp insurance may also cover legal fees. These can be quite expensive, even if you are found not liable.
4. Property, Sewer and Drain Coverage
Commercial property insurance is one way to insure your restaurant against a major loss, such as a burst water pipe or sewer damage. It can replace your fence or sign after a storm. If you have a fire, your restaurant may not be covered under a general liability policy. You can get a commercial property insurance policy whether you own or lease your building. This policy protects your assets.
5. Utility Services and Spoilage Coverage
Ever worry about what you’ll do if you lose power for a day? What if a water line breaks and the repairs shut you down for a couple of days? If you are forced to close for a short time, how will you pay for continuing expenses such as your mortgage or salaries? Business interruption insurance is one way you can protect your finances against losses from ruined inventory or loss of income.
6. Employee Theft Protection
When your employees handle large amounts of cash, you may worry about theft, even with the most trusted people. Business service bonds protect your customers’ personal belongings against dishonest employees while they’re on your premises. Employee dishonesty bonds protect your restaurant against fraudulent activities by employees, such as theft.
7. Data Breach Insurance
Your customers trust you with their credit card information. If that trust is breached, your business will have to pay to notify the individuals, manage your reputation and possibly even pay to monitor customer’s credit reports for two years. Cybersecurity insurance helps you manage those costs.
Bundle Insurance Packages To Save Money
Having multiple insurance policies can be daunting to your checkbook. We can help you find the policies that fit your needs while managing your budget. We have many options to help you find the best way to insure my restaurant. Contact one of our insurance agents to get more information on restaurant coverage.