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Five Things You Need to Know About Restaurant Insurance

Aug 17, 2022

Business insurance

Five Things You Need to Know About Restaurant Insurance

Any successful restaurateur will tell you that the food and beverage industry has unique challenges. There is much to account for, from ordering the correct amount of ingredients to avoiding costly wastages to maintaining expensive kitchen equipment.

Unexpected situations can occur anytime, Fortunately, restaurant insurance offers a means of mitigating these risks.

What Is Restaurant Insurance?

Restaurant insurance provides financial security for your business, employees, and guests in an accident, legal case, fire, employee injury, and other events. It's a layer of protection to safeguard your business and could differentiate between bankruptcy and success.

Why Do I Need Restaurant Insurance?

Restaurant insurance protects against any liabilities you may face. These include:

  • The costs of any legal action brought on by customers who claim to have been harmed on your premises
  • Equipment damaged in an accident. With a basic commercial freezer costing upwards of $8,000, it's easy to see how quickly the expenses add up.
  • High employee turnover.

What Does Restaurant Insurance Cover?

Restaurant insurance covers a wide variety of situations that may arise. A few examples are:

  • If assets such as ovens, dishwashers, etc., are damaged in an accident.
  • If an employee slips and breaks a bone.
  • If a faulty refrigeration unit causes food to spoil.
  • If a customer files a lawsuit against your restaurant.
  • If there is structural damage to the building from a natural disaster.

What Type of Restaurant Insurance Do I Need?

Choosing a good and well-rounded policy might be challenging. Here are some alternatives to contemplate before deciding.

  • Workers Compensation:

    If one of your employees is injured on the job, the insurance will pay the hospital bills and additional medical charges.

  • General Liability Insurance:

    This coverage protects your restaurant from legal expenses and other liabilities, such as a guest injuring themselves on your premises.

  • Commercial Property Insurance:

    This safeguards you if an accident results in physical asset damage.

  • Cyber Liability Insurance:

    A majority of restaurant sales are processed through debit/credit cards. This insurance protects you if a fraudster steals and sells the credit card information of your guests.

How Much Is Restaurant Insurance Going to Cost?

The total cost varies depending on many factors: the square footage of your restaurant, years in business, annual customers, size of the workforce, and past claims. A smaller restaurant could expect to pay around $2,000 for a suitable insurance package, while a large-scale restaurant could be over $10,000.

We Are Here to Assist You

A key part of a restaurant’s success is a well-rounded insurance policy that allows the owner to operate his business efficiently instead of worrying about how a future accident might threaten the existence of his business. It always pays to consult an insurance provider experienced in the industry.

Wouldn’t it be better to pay a set amount each month to know your restaurant is protected from a possible company-ending accident? Stop losing sleep over what you cannot control, and feel free to contact our team at Fuller Insurance Agency for your restaurant insurance needs.

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