MONDAY, APRIL 18, 2022
Restaurant owners face risks specific to the food industry. Hosting customers onsite, preparing and serving food to the public and having a busy kitchen environment means adequate insurance coverage for your business is crucial.
Fortunately, you don’t have to add “become an insurance expert” to your long to-do list. Contact the agents at RCU Insurance Services in Santa Rosa, California, today to discuss your restaurant insurance options and get a quote.
Who Needs Restaurant Insurance?
Businesses that prepare and serve food may need restaurant insurance. These businesses include the following:
- Food trucks
- Catering companies
- Food delivery companies
- Fast food franchises
- Cafes and coffee shops
- Sandwich shops
What Does Restaurant Insurance Cover?
Your customized restaurant insurance policy may include essential coverage designed to help reduce the risks associated with running a restaurant. Your agent may recommend the following:
- Commercial property insurance. This coverage helps repair or replace your restaurant building and other structures on site after a covered event.
- General liability insurance. This policy may help pay for damages if your restaurant is deemed responsible for third-party property damage or injuries. The policy may help pay related legal costs and medical expenses.
- Business interruption insurance. This coverage may help provide financial support if you close your operation to allow for repairs after a covered event.
- Workers’ compensation insurance. In California, all employers with more than one employee must provide workers’ compensation insurance. If an employee is injured or becomes ill in a work-related incident, workers’ comp helps pay medical bills and offers limited wage replacement while the employee recovers.
Your agent may also recommend the following policies to provide additional protection for your restaurant, including:
- Commercial auto insurance. This policy is similar to personal auto insurance. It provides liability coverage and may help pay to repair or replace your company-owned vehicle after a covered incident or accident. In California, the business-owned vehicle must have commercial auto insurance coverage.
- Commercial umbrella insurance. This policy helps cover claim-related costs that exceed your restaurant’s liability limits.
- Cyber liability insurance. This policy helps cover security breach claims.
- Liquor liability insurance. This policy provides coverage for restaurants that serve liquor to customers. If a restaurant guest is in an alcohol-related accident after purchasing drinks at the restaurant, the company may be held legally liable for damages.
- Food spoilage or contamination insurance. This policy helps pay to replace food that spoils because of a power outage or equipment breakdown. It may also help cover claims related to food poisoning.
- Cyber liability insurance. This policy helps cover liability after a data breach. It may help pay to recover compromised data, notify customers about the breach, repair damaged systems and restore the personal identities of affected customers.
- Equipment breakdown insurance. This policy helps pay for damage caused by motor burnout, power surges, electrical shorts, operator error and mechanical breakdowns.
Why Is Liability Insurance Important for Restaurants?
Your restaurant liability insurance can help protect your business from the financial consequences of common risks. Depending on your situation, your agent may recommend:
- Employee benefits liability insurance. If your business provides benefits to workers, an employee benefits liability insurance policy helps pay legal costs if you or one of your employees makes a mistake while handling employee benefits.
- Damage to premises rented to you. Your restaurant may operate in a leased building, and damage-causing incidents could trigger a lawsuit. Included as part of your restaurant liability policy, this coverage may help pay for accidental damage to a rented building. Your agent can help you determine whether this coverage’s sublimit is adequate for your company.
- Garage keepers liability insurance. If your restaurant provides valet parking, this could expose you to risks involving damage to your customers’ cars and property while in your care. This policy helps pay to replace or repair a customer’s vehicle if it’s accidentally damaged while in the care of your establishment.
Talk with your agent about how these additional policies may benefit your restaurant.
Business Owner’s Policy (BOP) for Restaurants
A business owner’s policy (BOP) may be appropriate if your restaurant has minimal risks, such as a food truck or catering business with one or two employees. This policy combines property insurance, liability insurance and business interruption insurance in one package. Not every company is eligible to purchase a BOP, so talk with your agent about whether this coverage may work for your restaurant.
Get the Restaurant Insurance You Need
Contact RCU Insurance Services today to learn more about creating a restaurant insurance policy with the coverage you need to protect your business from common risks in your industry.
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