Restaurant Insurance

Are you a restaurant owner? Are you aware of the variety of risks your small business faces? Restaurants face a variety of risks because of the nature of the business. An employee can slip and fall in the kitchen or accidentally cut themselves. A customer can become ill after eating your food. A natural disaster can destroy your building and leave you unable to operate. The proper insurance coverage can protect you in all of these circumstances—so you must be prepared.

What is Restaurant Insurance?

Restaurant insurance is a group of insurance policies designed to protect restaurants and other foodservice businesses in the case of property damage, bodily injury, customer illness, etc. 

Who Needs Restaurant Insurance? 

Any business that sells food products should consider the appropriate insurance coverage.

• Fast Food Restaurants
• Fine Dining Restaurants
• Delicatessens
• coffee shops
• Ice cream shops
• Doughnut shops
• Food trucks
• Caterers 
• Cafes
• Bars
• Pubs
• Bistros

Types of Insurance Restaurants Need

Because a restaurant typically owns a physical location, hires employees, and handles food, a variety of coverage as part of your policy is necessary. 

General Liability Insurance: Also referred to as ‘Slip-and-Fall’ coverage, general liability insurance protects your business in this case of third-party bodily injury or property damage. This is the most common business insurance recommended.

Commercial Property Insurance: This insurance protects your building from damage due to accidents, fire, and some natural disasters. If a fire breaks out in your kitchen and it must be repaired, this insurance can help cover the costs.

Business Owners Policy: A business owners policy typically combines commercial property insurance and general liability insurance under a more affordable policy. It's typically offered to small restaurants vs. large chains.

Workers’ Compensation: Workers’ compensation covers the cost of medical expenses, lost wages, lawsuits, and settlements if an employee gets injured or becomes ill on the job.

Product Liability Insurance: Any business that serves food is at high risk. A customer could become ill and sue the restaurant to cover medical expenses. Product liability helps protect you from these costly claims. 

Liquor Liability Insurance: If your restaurants, cafes, etc. serve alcohol and a patron becomes inebriated, liquor liability insurance protects you if they cause property damage or bodily injury to another person. If they leave your restaurant and get in a drunk-driving accident, your business and bartender can be held liable. Don't skimp on this important coverage.

Other Policies to Consider

Equipment Breakdown Coverage: If your furnace, A/C unit, boiler, or even refrigerators are damaged or breakdown due to an electrical surge, this insurance policy helps pay for repair or replacement—and in some cases lost profit. 

Business Interruption Insurance: If a fire or natural disaster keeps your business from functioning and making money, this insurance can help cover operating costs, cost of relocation, lost wages, and lost profit.

Garage Keepers Insurance: Does your restaurant offer valet parking? If your valet damages a customer’s car, this coverage can help pay for the physical damage.

Commercial Auto Insurance: If your restaurant also operates a food truck or catering truck, you need commercial auto insurance to protect this asset in case of an accident or damage. 

Employee Practices Liability: This covers your business if you are accused of harassment or discrimination. It is excluded from general liability coverage. 

How Much Does Restaurant Insurance Cost? 

The cost of business insurance for restaurant owners varies considerably, depending on the following variables:

• The number of locations
• Whether or not you own vehicles
• The type and age of your property
• Whether or not you sell alcohol
• How long you’ve been in business
• Coverage levels you have chosen

Business insurance for a restaurant is a cost that you cannot avoid, and it can be the difference between operating your business for years to come or losing it completely in a lawsuit.

Get a Free Restaurant Insurance Quote

Owning and running a restaurant business means juggling a number of tasks on a daily basis. Don’t let your restaurant insurance be one of the things causing you stress. Putting a good insurance policy in place will reduce stress and worry down the road, allowing you to focus on the operation of your business.

CommercialInsurance.Net specializes in helping restaurants find competitive rates from leading carriers. Complete the form above and a representative will connect with you soon to help you get a quote for your restaurant.