What You Need to Know About Restaurant Insurance Policies

What You Need to Know About Restaurant Insurance Policies

Restaurants are a unique type of business. 

The team works with dangerous equipment for food production, and they also have customers visiting their premises and drinking alcohol. There are a lot of potential risks that are associated with running a restaurant. 

Running a restaurant is a stressful business at the best of times. Facing risks to the business adds another layer of concern that most restaurant owners don’t need.

Of course, restaurant insurance applies to insuring all types of hospitality businesses: bars, taverns, sports bars, night clubs, entertainment venues, full service and quick service restaurants, pizzerias, delis, caterers, food trucks and more. Each one has unique risks that are covered by different insurance premiums.

Here’s just a shortlist of potential risks a restaurant owner faces:

  • What if the ovens or fryers cause a fire?
  • What if a staff member is injured while cooking or serving food?
  • What if the food that is served to customers causes food poisoning?
  • What if an intoxicated customer injures themselves or causes damage?
  • What if a customer slips and falls inside your establishment? 


Fortunately, these are all problems that can be overcome with the right insurances. However, at the same time, there are a lot of insurances that restaurants don’t need. So you must make sure you’re getting the right coverage.

 

Essential Restaurant Insurance

When it comes to insurance for their business, restaurant owners should, at a minimum, choose:

  • Business property insurance: which can cover the physical building and everything inside.
  • Liability insurance: which provides coverage if your business is at fault for injuries to others and their property.
  • Workers’ compensation: this insurance is required in nearly all states if you have employees.  


Additional Restaurant Insurance

Once you have the essential insurance covered, here are some extra insurance options that you may want to consider as a restaurant owner:

Property Insurance

Whether you rent your restaurant building or own it, you’ll likely want property insurance that protects the full value of the restaurant building and fixtures. 

Fire coverage

Buildings that house restaurants are prone to damage by fire. Moreover, many restaurant owners lease the building in which they operate. If you accidentally start a fire that damages a building you rent, your landlord might sue you for property damage.

Personal Property Coverage

If your restaurant has a lot of nice memorabilia or fittings, it might be worth considering an additional policy to cover the cost of theft or damage to any of it.

Business Interruption Insurance

Protects your business against closure for reasons of fire, hail, windstorm, vandalism, equipment damage, etc.

Food Contamination Insurance

Food contamination insurance is coverage specifically designed to help a business owner recoup any costs associated with spoiled or contaminated food in the event of a power outage.

Liquor Liability

Protects your business in the event that an intoxicated customer commits a crime, injures someone, or damages property.

Get a Quote for Restaurant Insurance

Restaurant insurance can be a complicated topic, as every business’s level of risk is different. 

You can’t simply purchase restaurant insurance on the internet for most types of restaurants, although you can begin by filling out online quote forms and obtaining a quote to send to you.


Jackson & Jackson Insurance Agents and Brokers offer commercial and business insurance with over 80 years of experience serving the San Dimas, Glendora, and LaVerne business communities.

Our agents can help you customize a menu of insurance solutions to meet your specific needs. Together we can review the options and develop a clear plan for restaurant insurance coverage.

Call today or fill out one of our free online quote forms to get started.

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