Food Safety and Liability: Understanding Insurance Needs for Your Restaurant

Written By Charlotte Insurance on September 26, 2023. It has 0 comments.

Food Safety and Liability Understanding Insurance Needs for Your Restaurant

As a restaurant owner, you need to have special insurance policies in place in order to avoid having to pay out of pocket for things that fall into the liability category, such as food poisoning and drunk driving. On top of that, there are some standard business owners’ policies that need to be in place as well.

So, which insurance policies do you need? Here’s a quick breakdown to get you started.

Specialty Food Insurances

Any time that your restaurant is serving food and drinks to people, you need to be aware of your potential liability. If a person gets food poisoning after eating your food, your business could be found liable, leading you to pay out of pocket for their health care costs. Thankfully, restaurant liability insurance covers these types of situations.

Going one step further, what happens if your water supply ends up getting contaminated? Or if your bartender ends up serving shots to someone who crashes their car on their way home because they were too inebriated to be behind the wheel? You’ll need to have drinkable water insurance, as well as liquor liability insurance in order to protect your business.

In addition, there are other specialty insurances, such as catering insurance, bakery insurance, and more that may apply, depending on the other services that your restaurant offers. It’s important to be prepared and have all of them in place, just in case the unexpected happens.

Business Owners’ Policies

While specialty restaurant policies are designed to provide liability coverage, they don’t protect the other parts of the restaurant, such as the building itself and its employees. Instead, these insurance policies do that part of the job:

  • Property Insurance – Restaurants come with some risks, such as the open flames that are often used to cook meals. In order to protect the property from things like fire damage, as well as storm damage in the form of windswept shingles or a flooded basement, you’ll need to have property insurance on the building.
  • Business Liability Insurance – Restaurants face a lot of different liabilities. From the loss of food due to an equipment malfunction to the possibility of a patron slipping on a wet floor and spraining an ankle. Luckily, business liability insurance will cover these events.
  • Equipment Breakdown Insurance – What happens if your freezer or walk-in refrigerator goes down? While equipment breakdown insurance may not pay for the lost food, it will usually cover the costs of parts and labor to get these crucial appliances back up and running again.
  • Workers’ Compensation Insurance – Any business that has employees needs to have workers’ compensation insurance. It pays their medical expenses and missed wages should they get hurt on the job through no fault of their own.

Have Questions? Contact Charlotte Insurance

Want to learn more about protecting your restaurant? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the insurance coverage plan your business needs.

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