The restaurant business is rife with both general and industry-specific risks. Therefore, as a restaurateur, you should always ensure your restaurant insurance is valid and meets your coverage needs. The financial benefits of doing this far outweigh the cost involved. For instance, a customer may suffer food poisoning after eating a meal in your restaurant. If the customer sues you for damages, restaurant insurance will pay the liability costs, helping protect your savings and assets. As a best practice, you should review and renew your coverage periodically. The frequency with which you will do this will depend on various factors and scenarios. Let's discuss them here.
Any changes in your inventory may cause changes in your insurance needs. For instance, if you purchase a new piece of equipment for your restaurant kitchen, your insurance needs will increase. You will need more coverage to cater to the new equipment, just in case it suffers damage or theft. Keeping this in mind, consider renewing your policy if you've added to or removed items from your inventory. While some changes may seem minor, speak to your underwriter to be sure of it.
In this digital era, exposure to cyberattacks increases by the day. In the U.S., for instance, a cyberattack attempt occurs every 39 seconds. Purchasing more digital devices, broadening your digital presence, and handling more sensitive information can make your business more vulnerable to attacks. In case there have been changes that could expose your business to cyberattacks, you should inform the insurance company to renew your coverage. This will help enhance cyber safety in your business.
Value attracts extra protection. For instance, a small piece of equipment may only require a simple insurance policy for protection. This is unlike a sophisticated one, which may result in a substantial financial loss in case of damage or theft. Therefore, you should renew your restaurant insurance if you've added value to your operations. Examples of improvements include upgrading your equipment and renovating your premises.
Your insurance needs largely depend on what’s going on in your business. Even so, the outside world may also matter greatly. For example, since the federal and state governments monitor and regulate insurance in the U.S., they can impose new regulations that may change your insurance needs. Trends in the insurance market can also influence your business insurance. If let's say, insurance companies are offering discounts for some reason, you may be able to save on your restaurant insurance coverage. Recently, California became the first state to offer home Insurance and business insurance discounts for policyholders that mitigated their wildfire risk. Therefore, if there are such changes in the industry, you should renew your coverage.
Reviewing and renewing your restaurant insurance will ensure you have adequate financial protection, as well as help, minimize or even eliminate coverage gaps. Contact the experts at Fuller Insurance Agency today if you need help auditing your coverage requirements before renewal. We excel in providing cost-effective commercial insurance solutions for businesses like yours.