You didn’t open your restaurant because you wanted to worry about food costs, overtime, or insurance coverage. You did it because serving and feeding people is your passion. To keep living your dream every day, you have to take precautions now. The right restaurant insurance policy will keep you going even when the worst happens.
Here’s what you need to know about insuring your restaurant.
“Restaurant Insurance” Really Means Hospitality Insurance
It’s called “restaurant insurance” but that implies the coverage is only needed or available for locations that serve dinner to families. In reality, it’s an umbrella term that covers a wide variety of hospitality businesses. This includes bars, taverns, food trucks, coffee shops, nightclubs, and venues for entertainment plus eateries.
When you’re trying to decide if you need restaurant insurance, ask yourself a question. Do I serve food or beverages to consumers? If the answer is yes, you need it, even if your establishment isn’t a traditional restaurant.
All Restaurants Need Basic Coverage
Your independent insurance agent can customize your restaurant insurance coverage to help protect your specific business and establish, but all hospitality venues need certain basic coverages.
- Property Damage: This covers your equipment, building, signs, furnishings, food, and more.
- Liability: When someone gets hurt or experiences property damage, liability coverage pays the claim and any legal fees or settlements (up to your policy limits).
- Workers’ Compensation: Workers comp protects your employees if they get hurt or sick on the job. Their medical bills and lost wages will be covered.
- Commercial Auto Insurance: Like personal auto insurance, you’re covered if you or your employees get in an auto accident on the job. It’s good for establishments that make deliveries or offer valet service.
No Two Policies are the Same
Unlike standard home insurance or auto insurance, no two restaurant insurance policies look exactly the same. Why? Because no two restaurants are exactly the same. A food truck that operates during daytime hours but changes location every day needs something much different than a sports bar that serves alcohol and stays open late.
A restaurant insurance policy that’s tailor-made for your business means that you’re not paying for coverage you don’t need. Even better, you’re getting the protection you do need for your business. Independent insurance agencies have the flexibility to find the specific coverage that works best for your restaurant.
Multiple Factors Impact the Cost
If no two restaurant insurance policies are the same, that means there’s no “standard” pricing. This isn’t something you can buy from a shelf. A lot of factors determine what you’ll pay for coverage:
- The location of your restaurant
- The sales and food volume
- Type of property you have
- The activities that occur there
- Hours of operation
- Percentage of alcohol sales
- Policy limits
- Valet or delivery service
- Number of employees
- And more
A small coffee shop that’s open five days a week and only until 8:00 p.m. may pay less for their insurance policy than a nightclub that serves alcohol and stays open until 3:00 a.m. That’s because both establishments have very different risks and needs.
Don’t overpay for your restaurants insurance coverage and don’t do business without the protection you need. Charlotte Insurance can find the right coverage for your restaurant at a price you can afford. Request a free quote today!