Any savvy restaurateur knows that Food & Beverage is a machine of moving parts; therefore, having the right food and beverage insurance is paramount. Comprehensive insurance for your bar, restaurant or manufacturing settings can protect your business from various situations, such as spoilage, equipment malfunction or assault.
While it is wise to obtain general liability insurance for potential mishaps with customers, other insurance types to consider are auto insurance for delivery vehicles, property insurance and workers compensation. It is important to note that intimate knowledge of your policies makes sure you are able to make any deductibles, are aware of coverage limits and how to adjust those for areas of serious concern.
Product Liability Insurance
Product liability insurance protects a restaurant when issues with the food, especially those that are health related. These policies are in case a patron becomes ill from eating raw, undercooked or spoiled food.
When refrigeration equipment breaks down or is faulty, spoilage insurance can protect against both the cost of the lost food and lost revenue. In addition, spoilage insurance is paired well with equipment breakdown insurance.
Equipment Breakdown Insurance
The kitchen is central to any restaurant and requires all of its components to operate properly. Freezers, refrigerators, ovens, ranges and ventilation are all essential to a well managed and productive food service business. Have these pieces of equipment insured against breakdown due to mechanical or electrical error.
Commercial Property Insurance
If a water pipe bursts or a fire breaks out in your restaurant, this policy will cover the ensuing damage to the building or personal items. These items, which are considered to be in your care, would be those belonging to staff or patrons and that are not owned by your restaurant.
As with personal vehicles, auto insurance for delivery, catering or pick-ups should be considered protected assets. Whether the vehicle is a car, van or truck, having appropriate insurance against physical damage should be a priority.
Liquor Liability Insurance
Liquor liability insurance, also known as dram shop insurance, provides coverage to establishments that in some way provide alcohol, including restaurants, bars, breweries or distilleries, among others. The policy would be enacted to cover the damages from a patron who becomes intoxicated and then harms other patrons, staff or causes property damage.
Assault & Battery Insurance
While food often brings people together, it is reasonable to expect that there will be those unwilling to keep the peace. Assault and battery insurance protect your business if a physical conflict occurs at your establishment.
Workers’ Compensation Insurance
Workers’ compensation insurance, colloquially known as workers comp, is required in most states, though the details vary. This insurance covers the lost wages and medical expenses incurred when an employee acquires an injury or an illness on the job. These policies are meant to keep both employers and employees safe at work.
Cyber Liability Insurance
Those whose food-based business is carried out online will benefit from protection against cyberattacks. This can include online orders or payments made online or any situation in which patron data is compromised. Preserving the integrity of your customer’s data, especially surrounding online transactions, should never be overlooked.
Increasing Your Coverage
Whether you are a passionate foodie or an entrepreneur, protecting your business is a simple step to make the most out of your venture. Assessing the types of insurance you need will be a personalized experience with many considerations. A good start is to review the state, county and local mandates for what insurances are required, any specific limits and what they are required to cover.
The next step would be to analyze your business, and determine a key factor in your business’s success. One umbrella coverage insurance policy may not be enough in the case of specialized establishments. For example, bars and more alcohol-centric businesses would be wise to consider assault and battery insurance, as alcohol can make people unpredictable.
Conversely, a cafe that only has delivered items and does not do catering or pick up their own supplies won’t need auto insurance. While it can be overwhelming, Pro Insurance Group can help guide you and your restaurant towards the best suited policies.
When you started your business, location likely was a considering factor; use that research to inform what protections you need. Speaking with a professional insurance provider, or other similar businesses in your area, will provide you with valuable information about the area’s challenges, such as inclement weather.
Having the proper insurance is a serious conversation with stakeholders that should be given proper attention. If it is time to renew your coverage, or if you are just starting with your business, getting a quote from Pro Insurance Group is your best first step.