What is restaurant insurance?
Restaurant business insurance is a custom policy designed to protect owners against threats related to food and beverage company operations. It's a comprehensive policy that covers liability, equipment breakdowns, property damage, bodily injury, lost income, and other unforeseen events. It provides financial stability and peace of mind so you can focus on running your restaurant.
Why do you need restaurant insurance?
Working with food and the public can create challenges and many potential risks. Many things could go wrong. Owners must ensure that their food, employees, customers, and location are always safe and cared for. Restaurant insurance gives you that extra financial protection if things don't go as planned.
Potential threats restaurant insurance can protect against
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Even if you take every precaution, things can happen. Here are some of the main risks to restaurants:
- Customers claims of food poisoning or allergic reactions
- Over-serving alcohol to a customer
- Slip and falls in the dining room, kitchen, or other areas
- Equipment breakdowns causing food spoilage or contamination
- Kitchen dangers - employee injuries (burns, cuts), fires
- Delivery drivers getting into a collision
- Theft and vandalism
- Business shutdowns due to health and safety violations
- Fires, floods, power outages, and weather-related damage
A custom restaurant insurance policy can protect you against these threats and liabilities and ensure you maintain your finances, assets, and reputation in the community. Insurance is a safeguard that protects your business and helps it thrive.
What types of companies need restaurant insurance?
Whether you need insurance for a small restaurant or a chain of restaurants, we can help you get a comprehensive policy to protect your eatery. Here’s a list of food and drink establishments that can benefit from restaurant insurance:
- Dine-in restaurants
- Bars, pubs, taverns, lounges
- Sports bars
- Nightclubs
- Food trucks
- Hot dog stands and street vendors
- Fast food restaurants
- Ice cream stands
- Diners
- Bakeries
- Pizzerias
- Delis and sandwich shops
- Cafes and coffee shops
- Catering companies
- Vending machines
- Personal chefs
- Food delivery services
- Home-based food services
What does a restaurant policy insurance cover?
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The type of insurance needed for a restaurant can vary based on the establishment. Restaurant general liability insurance is at the top of the list for all food service companies. The great thing about insurance for restaurants is the ability to customize it to meet your unique needs. Here’s an overview of the types of coverage available:
- Commercial general liability insurance: Get protection if your restaurant or employees cause damage or bodily injury to a third party.
- Commercial property insurance: This protects the physical building where your restaurant resides. You’ll have coverage if the building structure is damaged.
- Business interruption insurance: Ensure your restaurant is financially stable, even if you are forced to close down due to unforeseen circumstances—for example, a small kitchen fire, storm damage, or broken down cooking equipment.
- Food contamination insurance: This covers the cost of replacing spoiled or contaminated food because of a power outage, equipment breakdown, or other events.
- Liquor liability insurance: If you serve alcohol, this will cover you in the event intoxicated customers get injured, cause property damage or commit a crime.
- Equipment breakdown insurance: This covers the cost to fix or replace equipment that breaks down because of malfunction, power surges, and other unforeseen circumstances. This includes stoves, freezers, refrigerators, and other appliances.
- Commercial auto insurance: Ensure all restaurant vehicles and employees who use these vehicles, have auto coverage when picking up supplies or doing deliveries.
- Cyber liability insurance: Most businesses operate online today. You take orders, book reservations, and have business records stored on your computer. You have important customer contact information, credit card data, and employee records. This policy protects you in the event of a data breach.
- Business contents insurance: This covers the contents within the walls of your restaurant. This includes the tables, chairs, cook equipment, decor, and other items used for operations.
