Opening a new restaurant can be daunting. From fire regulations to finding the best equipment at the lowest cost, it’s easy to overlook important insurance information in your policy. When it comes to insurance for restaurants, the lower price is often not better, and may wind up costing you more eventually.
How do you avoid these unnecessary costs? The first step is understanding what each part of your insurance does to protect your business.
Common Restaurant Insurance Types
- Property insurance. This type of insurance covers exactly what it says: your property. However, many property insurance policies leave out natural disasters such as flooding, and may have limitations in fire coverage. Be sure to understand how much this insurance covers for the price you pay.
- General liability. In general liability, your restaurant has an umbrella coverage for things like slip and fall accidents and patrons becoming ill, regardless of fault.
- Liquor liability. If you have a liquor license, your general liability won’t cover everything. This specific insurance gives you the right protection against patrons drinking and driving from your establishment, along with other liquor-related protections.
- Auto liability. Planning to offer a delivery service? Be sure to check if your general liability covers your vehicles. If it doesn’t, this insurance can help cover accidents and other damage you may not foresee.
- Workers’ Compensation. Accidents happen. Even the most seasoned staff members can be injured at work. This coverage will save your business costly bills in the event your workers are injured.
- Unemployment insurance. This type of insurance covers employees after they no longer work for your establishment. There are many laws and regulations that govern what type of insurance your business is required to offer.
- Life insurance. One of the more overlooked types of insurance, this type of policy can help satisfy a lender helping with your mortgage and financing. It is also good sense to have this type of policy in general to ensure your family isn’t left with bills they can’t afford should anything happen to you.
- Fire insurance. Your property insurance will cover fires, but it may not be enough. Be sure to understand how much coverage you have in the event of a kitchen mishap.