No matter what kind of food you serve or how long you’ve been in business, running a restaurant poses unique risks. These include equipment failure, food spoilage, and even injuries to your staff.
You need insurance that can help you manage these risks. Restaurant insurance offers specific protections tailored to the needs of your particular business.
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Property Insurance
Whether you run a restaurant that serves alcohol, makes deliveries, or offers valet parking, it is essential to protect your business with restaurant insurance from Mountain Insurance. Not only will it help you avoid costly lawsuits and customer claims, but it will also help ensure you have enough funds to keep your business running smoothly.
Your commercial property insurance policy is your first line of defense against damage to your building or equipment, which can happen due to various reasons such as fires, storms, vandalism, etc. Therefore, it is essential to understand what your policy covers and does not cover before making a claim.
In addition to your standard policy, consider specialty insurance. For example, add a sign and glass coverage to your policy. Then, if damaged or destroyed, it will pay to replace your outdoor signage and glass.
General Liability
General liability insurance safeguards your company from the financial consequences of client injuries or property damage. Unfortunately, these expenses can be very high.
Commercial general liability also covers lawsuits related to libel, slander, copyright infringement, and plagiarism. These claims can be exceptionally costly to your reputation.
You should also ensure that you have product liability, protecting you against food poisoning claims and other lawsuits.
Most states require restaurant owners to carry workers’ compensation coverage. It is essential since your employees can get injured while carrying something, climbing on chairs, or handling hot surfaces.
Consider purchasing a commercial auto policy to cover your business-owned vehicles. It is essential if your employees drive to pick up supplies, deliver food or offer valet parking services.
Business Owner’s Policy (BOP)
Business owner’s policies (BOP) combine property and liability insurance into one package. As a result, these policies are typically less expensive than purchasing coverage separately and allow you to customize the policy for your specific needs.
BOPs protect your business against loss due to various events, including customer injury or property damage. They also help you pay the cost of defending yourself in court.
Besides property and liability, businesses can include endorsements for liquor liability, business interruption insurance, cyber liability, and other coverages. In the food service industry, for example, adding business interruption insurance can protect you if you must close due to a fire or natural disaster.
The cost of a BOP depends on the value and type of property covered, as well as your business’s location and age. It is also influenced by your claims history and the industry in which you work.
Business Interruption Insurance
Business interruption insurance can help you recover financially if your business experiences a covered loss that makes operating impossible. This policy will cover lost revenue, extra expenses, and even loan payments if you’re closed temporarily due to damage.
To qualify for business interruption insurance coverage, you must demonstrate that the business interruption event was a direct physical loss and that the loss or damage occurred due to a covered peril. It includes a fire or other property damage.
A typical example is a restaurant that burns down and can’t continue operating. It can lead to a loss of income for the cooks, wait, staff, and owners.
Getting this coverage from a professional who understands the industry and can advise you on how much you need is essential. It’s not a simple calculation, but it can be crucial to protecting your restaurant’s future. Ask your broker to get quotes for you from several insurers.
