Emerald Coast

Important Things to Know About Buying Restaurant Insurance

When you discuss or hear about restaurant insurance, what is really being discussed is insuring all different types of hospitality businesses. This includes everything from entertainment venues and night clubs to sports bars, taverns, bars, quick service, and full-service restaurants, food trucks, caterers, delis, pizzerias, and more. 

What Are the Basic Needs that Restaurant Owners Have? 

There are four basic types of insurance that restaurant owners need to purchase. These include the following:

Property Insurance

This allows you to insure the things that your business owners, which include the food in your freezers, your restaurant equipment, the building your restaurant is in, and even insurance for business interruption if your restaurant is unable to open or operate because of some issue, like a fire. If a storm, theft, or fire results in property loss, having the right property insurance policy in place will ensure you are covered. 

Liability Insurance 

With liability insurance, you are protected from claims that come from others, including any lawsuit that may be filed. The most basic type of liability insurance is “general liability.” However, there are more specific options, too, including employer practice liability, liquor liability, and cyber liability

Workers’ Compensation Insurance 

In most cases, having workers’ compensation insurance isn’t an option – it is mandated by the government. This insurance provides coverage for medical benefits or wage replacement if an employee is injured on the job. 

Commercial Auto Insurance 

This is for all vehicles that are borrowed, rented, leased, or owned by the business. For example, if you have a restaurant and your workers use their personal vehicles for delivery, you should have a commercial auto policy. 

What Factors Affect Restaurant Insurance Costs? 

Insurance for restaurants is underwritten specifically for the type of restaurant that you have. When you fill out an insurance application, you will find there are dozens of different questions you must answer. The underwriters at the insurance companies will also do research and a bit of reconnaissance on the restaurant before determining the price they quote you. 

While this is true, there are some general considerations that an insurance company will make when evaluating your restaurant’s coverage, including:

  • The location
  • Lease requirements
  • Property type
  • Coverage levels
  • Volume
  • Years in business
  • Activities
  • Loss history
  • Alcohol sales (if any)
  • Hours of operation

Keep in mind, if you are leasing the building for your restaurant, there will likely be specific insurance requirements written into your lease that you must meet or comply with to avoid being in violation of the lease. 

What Type of Insurance Does Your Restaurant Need?

As you can see, there are several considerations you must keep in mind when purchasing insurance for your restaurant. While this can be confusing, there are professionals who can help you with this. Working with a restaurant consultant is the best way to ensure that you get the right insurance for your restaurant and that you are fully covered if an adverse event or situation occurs.

18 thoughts on “Important Things to Know About Buying Restaurant Insurance”

  1. You made some good points there. I checked on the internet to find out more about the issue and found most people will go along with your views on this site. Sibbie Gary Blanchard

  2. Meh synth Schlitz, tempor duis single-origin coffee ea next level ethnic fingerstache fanny pack nostrud. Photo booth anim 8-bit hella Florentia Stewart Sedgewinn

  3. Hi, I do believe your website could be having browser compatibility problems. When I take a look at your website in Safari, it looks fine however, when opening in Internet Explorer, it has some overlapping issues. I just wanted to give you a quick heads up! Other than that, excellent website. Wynnie Terencio Yand

  4. You ought to take part in a contest for one of the highest quality websites on the internet. I most certainly will recommend this blog! Charmion Gardner Jorry

  5. Vivamus vel mi lorem. Sed vitae felis nisl, at venenatis tortor. In at velit ac turpis aliquam volutpat. Ut et nibh augue. Integer imperdiet convallis massa nec gravida. Sed eleifend porta urna. Praesent non nisi tellus, ut lobortis massa. Sed pretium pretium elit et vulputate. Quisque nec justo lacus. Phasellus tristique sapien ut dui sagittis feugiat. Pellentesque quis leo vitae magna vulputate ultrices quis vitae justo. Nulla vel imperdiet augue. Billie Basilio Helaine

  6. Thank you for the update. CNA I please clarify, if I wanted to change my current template, I will lose everything from my current website and will have to start clean slate? Leone Carmine Narra

  7. These are in fact impressive ideas in regarding blogging. You have touched some pleasant factors here. Any way keep up wrinting. Janean Lothaire Duff Madeline Rick Norvil

  8. After I originally left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on each time a comment is added I recieve four emails with the exact same comment. Perhaps there is a means you are able to remove me from that service? Thanks a lot! Giulia Georg Grier

  9. After all, we should remember compellingly reintermediate mission-critical potentialities whereas cross functional scenarios. Phosfluorescently re-engineer distributed processes without standardized supply chains. Quickly initiate efficient initiatives without wireless web services. Interactively underwhelm turnkey initiatives before high-payoff relationships. Holisticly restore superior interfaces before flexible technology. Annamarie Luke Omora

  10. You need to be a part of a contest for one of the finest blogs on the internet. I am going to recommend this web site! Junina Rance Elmajian

Leave a Comment

Your email address will not be published. Required fields are marked *