As with the ingredients of every dining option on your menu, the types of insurance you need for your restaurant are varied and diverse. In addition to the standard coverages that any business should have, restaurants have very specific needs.
In the fast-paced environment of the restaurant business, owners often lack the time to review the fine details of their insurance policy and coverage. However, during a crisis is not the time to discover the details of what a policy does or does not include.
Below are some basic coverages every restaurant should have, but having a trustworthy insurance provider who understands the nuances of owning a restaurant can ensure your restaurant business is fully protected.
Types of Insurance Every Restaurant Needs
Searching for the insurance that best suits your restaurant can be an overwhelming and often confusing task. It may seem too difficult to choose the appropriate coverage that addresses all of the necessary points. Here are some of the most common ones for restaurant owners.
As with any business, and usually as required by most states, a workers compensation policy is a must. This policy covers the employees of the business for any injury or illness they sustain as a result of their job. In the restaurant industry, this could be a slip and fall on a greasy kitchen floor, exposure to fumes from cleaning products or other work related incidents.
Worker’s Compensation Insurance, frequently referred to as workers comp, is a policy that allows your workers to receive a portion of their wages as paid by the insurance company, while they are away from work recovering. The wages of the recovering employee are not the responsibility of the business; your insurance coverage pays for everything.
Business Owner’s Policy
A business owner’s policy (BOP) provides for many of the unexpected things that could threaten a business. This policy includes general liability but it also covers your commercial property, equipment breakdowns and covers your business income in the event that you have to unexpectedly shut down and are unable to generate income.
One example of this may be if your kitchen suffered a fire and you had to close down for necessary repairs, you would be covered for that loss. This policy is essential for restaurant owners and ensures that your restaurant is back up and running as quickly as possible.
This policy is essential for business owners. A comprehensive BOP will often include General Liability as part of the package and covers a range of damages, injuries and associated legal costs. If a customer is injured while on your property this policy will provide coverage for any related medical costs, attorney fees or for any financial damage as a result of a judgment against the business.
Spoilage Insurance and Food Contamination Insurance
Spoilage insurance helps protect your investment in the event the food becomes unsafe to serve. If your restaurant loses power, such as during inclement weather, causing refrigerators and freezers to be unable to store food at the correct temperatures, this policy would cover the loss of the unusable food and help replace the lost food.
Food contamination insurance covers food spoilage from mishandling, improperly storing or equipment failures either partially or fully, by the terms of your policy.
Employment Practices Liability Insurance
Employment Practice Liability Insurance helps protect your business in several ways. Serving as a complement to the workers compensation policy, it will provide coverage if the injured party, or their surviving family, feel that workers compensation did not adequately cover their losses.
In the event that an employee claims wrongful termination, harassment or discrimination due to race, sex, age or disabilities, employment practices liability insurance covers employers. Even in the event of a finding of no wrongdoing, the legal process can become quite lengthy and expensive with attorney fees and lost income.
In the event of a ruling of guilt, any awarded damages or settlements would greatly exacerbate those costs which would be covered by employment practice insurance.
Employee Dishonesty Coverage
This policy will help you recoup any lost revenue as you pursue legal action against a dishonest employee. Having security systems in place in the form of physical security, policies and security cameras can go a long way toward preventing employee theft.
However, whether an employee is stealing cash, not charging friends for food or drinks or is personally stealing goods, a business suffers not only the cost of the cash or items, but also in the fees associated with pursuing legal action. Employee Dishonesty Coverage insurance will work to recover your losses.
Protect Your Restaurant Today
Robust insurance policies that include the above and more will ensure your restaurant enjoys longevity and that you are protected against some of the most common setbacks. Prepare your restaurant business for the unexpected; contact Pro Insurance Group to help you determine what coverage will best suit the needs of your business.