Choosing the Right Insurance for Your Restaurant

Owning a restaurant is undoubtedly an exciting venture for anyone that loves foods. However, unfortunately, just like owning any other business, this involves carrying out mundane activities such as choosing a proper restaurant insurance policy. With the right insurance coverage, your restaurant is much more likely to succeed and flourish.

These insurance policies are designed to safeguard your restaurant from different types of roadblocks. Accordingly, many different types of restaurant insurance policies are available. As the owner of the restaurant, you must conduct an in-depth study to ensure that you have all the right policies. First and foremost, please consider the type of restaurant and location. Mentioned below are the types of insurances that are extremely essential for any restaurant business.

Common Restaurant Insurance Types:

In order to select the most appropriate insurance policies for your restaurant, you should first understand what the existing types of insurance are.

• Property insurance: This insurance provides coverage against expenses caused because of accidents such as fire or anything else causing damage to the restaurant. Some of these insurances also offer coverage against different types of natural disasters. Therefore, if your restaurant is located in an area that is prone to earthquakes or hurricanes, this is the type of policy you should look for. Finally, property insurance is a must for restaurant owners that have a mortgage on the property.
• General Liability: General liability insurance is critical to protecting your restaurant from minor mishaps such as accidental slip and fall. Regardless of who is actually at fault, customers will always hold the restaurant responsible for such accidents. That’s why it makes sense to invest in a general liability policy.
• Liquor Liability: The liquor liability policy is a common component of insurance for any restaurant with a liquor license. However, liquor liability insurance is not a necessity in some of the states. As a restaurant owner, if you are looking for peace of mind, a liquor liability policy will make sense to you. If one of your customers hurts someone else after drinking too much, this insurance will protect you from this liability.
• Cyber Liability Insurance: Today, most of the restaurants are vulnerable to data breaches because they accept cards. Any such data breach can make your restaurant liable for the losses. According to the Federal Trade Commission, an estimated cost of $10 billion is incurred every year because of cyber events. With cyber liability insurance, your restaurant will remain protected from regulatory actions and claims resulting from cyber liability.
• Food Contamination Insurance: In a restaurant, food contamination may take place because of several reasons. If there is a prolonged power outage, it is natural for the food to get contaminated. Luckily, with food contamination insurance, you can have the contaminated food replaced provided the contamination has not taken place because of your fault.
• Commercial Auto Insurance: This type of insurance is essential for restaurants and mobile food vendors to protect their fleet. These policies include liability protection if an accident results in injury claims by a third-party. Damage to company vehicles is also covered.
• Employee Practices Liability Insurance: Any restaurant with employees is vulnerable to regulatory actions or claims arising out of different types of alleged violations. This type of insurance policy will cover your settlement damages and defense costs in the event of anti-discrimination lawsuits, wage-and-hour lawsuits, and other claims resulting from allegations of unlawful employment practices.

It is true that so many restaurant insurance options can be quite overwhelming. However, the process of signing up for comprehensive coverage becomes simpler by choosing the right insurer. By opting for an insurer offering BOPs along with all necessary add-on coverages, you can have all your restaurant insurance needs fulfilled in one place.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.