Owning a restaurant means you’re making a lot of decisions. Who works what shift, what’s tonight’s special, should you hire an extra person for the kitchen? The choices you make determine whether your establishment makes money and grows or not.
Your restaurant insurance policy is another important decision you need to make. It’s just as important as anything else, and if done right, it protects you from financial ruin. But if you don’t choose wisely, it can be the reason one bad accident puts you out of business.
Here’s how to pick the right restaurant insurance policy for your business.
Think of the Potential Risks
The longer you work in the food industry, the easier it is to imagine everything that can go wrong. Here are a few things that you might need to worry about.
- Serving alcohol can lead to drunk patrons. If a patron gets hurt or hurts someone else after drinking at your establishment, you can be held liable.
- Power outages spoil food which means you’ll have to pay to replace all of your food inventory.
- Wet floors contribute to slips and falls.
- Food contamination usually leads to food poisoning. Sick customers could sue you for liability.
- Natural disasters or fires will mean you’re shut down for repairs which eliminates your income for a certain amount of time.
- Delivery drivers can get into accidents and valet drivers may damage a customer’s vehicle. You’ll be held responsible.
- Cyber thieves might still your customer’s credit card information, but you’re the one responsible for notifying customers and fixing the breach.
Look at Your Insurance Options
The best thing to do is to talk to an independent insurance agent about insurance options for your restaurant. We will take a look at your unique circumstances and suggest the policy options that offer the most protection. Different policies protect against different risks.
- Property: Damage to or the loss of your building, furnishings, equipment, signage, food, and other items are covered.
- Liability: When someone gets hurt on your property or while doing business with you, their medical bills and/or property damage is paid for.
- Liquor Liability: Serving alcohol comes with a lot of risk. If a patron gets drunk and hurts other people or themselves, you could be held responsible for it.
- Life Insurance: Some restaurant owners have a mortgage on their restaurant. This can pay the mortgage and help your family in the event of your death.
- Loss of Business: When your restaurant has to be closed down for repairs because of a covered peril, you’re not making any money. This helps replace your lost income and pay your employees.
- Food Contamination: Food contamination is every restaurant’s nightmare. If it happens, you can get the food replaced, as long you’re not at fault for the contamination.
- Cyber Liability Insurance: If you take credit card information as payment or take online orders and payment, your restaurant is at risk of being hacked. Cyber insurance helps you notify customers, fix the breach, and get back to business.
- Commercial Auto Insurance: Restaurants with delivery or valet service run the risk of accidents and damage every time someone gets behind the wheel. Commercial auto insurance protects your business when the accident occurs.
The best way to choose the right restaurant insurance policy is to work with an independent insurance agency who wants to protect your business as much as you do. Charlotte Insurance will put together a custom plan for your restaurant that fits your business needs. Request a quote today!