Any business needs adequate insurance cover to protect it against disaster. However, a restaurant has unique features which need a special set of policies for full coverage. Here are seven types of insurance no restaurant should be without.
1. Public Liability
Tales of fast food customers suing over a steaming cup of coffee may be amusing, but today’s litigious society offers real risks for a restaurant owner. For example, no matter no well-run the kitchen, you can encounter issues that risk food poisoning. Also, mishaps are bound to happen at any premise where alcohol mixes with hot food. Fortunately, a public liability policy protects you against any customers seeking compensation if anything goes wrong during a service.
2. Workers’ Compensation
Customers aren’t the only ones who can have accidents in a restaurant. Kitchens are dangerous places to work, regardless of how careful you and your staff are, so it’s important to also have a workers’ compensation policy in place. Workers’ compensation coverage will pay for any medical costs needed because of incidents in your restaurant. It will also replace lost wages during recuperation, and help protect you against any legal action that might follow.
3. Food Contamination
A typical restaurant has a large amount of capital invested in its inventory of frozen, dried, and chilled ingredients. If anything happens to this stock, such as spoilage through a power cut, food contamination coverage will reimburse your losses.
4. Business Interruption Coverage
The value of your inventory can also be lost if you need to temporarily close the restaurant for any reason that’s out of your control. If an involuntary business interruption cuts off your revenue, insurance can make up the difference to keep your cash flow moving.
5. Liquor Liability
You have little control over the behavior of your customers, particularly after they’ve left your premises. However, you could be held partly responsible if an inebriated diner later causes damage to property or injury to a person. Even if you take care not to let diners overindulge, you could be on the hook because you’ve sold someone implicated in an incident alcohol. Thankfully, liquor liability coverage removes this risk so long as you take a responsible approach to your liquor sales.
6. Property Insurance
More than most other businesses, a restaurant relies on its location and premises. If you need to relocate temporarily through fire or flood, it can be very difficult to adapt and keep hold of your customers. Comprehensive property insurance will provide a financial cushion if disaster strikes.
7. Life Insurance
Lastly, if you have dependents and your restaurant provides the majority of your income, taking out life insurance is a sensible precaution. If something happens to you, there’s no guarantee your business will stay profitable, but your family will still need an income. A good life policy will provide for them while they come to terms with their change in circumstances.
Running a restaurant is thrilling, insurance, not so much. But having these policies in place is essential for putting your business on a sound financial footing, and cannot be overlooked. The best part, though, is that the Your Way Group team can help you put together an insurance package perfectly fitted to your restaurant with the right amount of coverage. Contact us today to set up a free consultation and give yourself some peace of mind.
