Running a restaurant or food and beverage business can be a stressful undertaking. Alongside staying afloat financially, there are risks that the business naturally faces, such as fire in the kitchen, accidental injury to team and patrons, and many others.
That is why restaurant insurance can be an excellent way to alleviate the concern that most restaurant owners have.
Businesses that cook and serve food or drinks need adequate restaurant insurance. The businesses types can include:
- Bars / Taverns / Sports Bars
- Cafés / Coffee shops
- Diners / Drive Through Restaurants
- Delis /Sandwich shops
- Food delivery services
- Fast food franchises
Each of these food and beverage type businesses has unique risks covered by different insurance premiums.
General Liability Insurance for Restaurant Business Risks
General liability insurance is often the first policy food and beverage business owners purchase for their business.
The reason for this is because it is required for most restaurant commercial leases. But the benefit is that it protects against lawsuits, accidents, and oversights that might otherwise financially damage your business.
A General Liability policy provides liability coverage related to:
Accidents have a higher risk level at a food or beverage business. If a customer is hurt on your property, general liability insurance can pay for everything from an ambulance ride to the cost of a lawsuit. General liability insurance covers:
- Legal defense fees
- Medical expenses
- Court-ordered judgments
- Funeral expenses for fatal incidents
Keep in mind, General Liability does not protect your employees. To cover your team, you need workers’ compensation insurance.
Customer Property Damage
General Liability Insurance protects you when customer property is damaged. (e.g., if a server spills a drink on a customer’s laptop).
General liability insurance can also protect your foodservice businesses from off-site incidents. For example, food-warming equipment that accidentally starts a fire, resulting in property damage.
Host Liquor Liability
General liability insurance won’t cover incidents at a bar or restaurant that regularly serve alcohol. However, general liability insurance includes host liquor liability insurance. This insurance covers bodily injury and property damage resulting from alcohol served at any social function where your business provides alcohol or other events unrelated to the business’s profits.
You may think your restaurant’s advertising is safe, but if you inadvertently copy a competitor’s slogan, accidental ‘advertising injuries’ are covered by general liability insurance. The insurance covers:
- Copyright infringement
- Defamation, both libel (written) and slander (spoken)
If you use advertising or promotional materials to attract customers to your restaurant, food truck, catering business, or other foodservice business, it’s advisable to make sure your insurance includes this protection.
Bundling Commercial Property and General Liability
If your restaurant, bakery, or other food business is relatively small and has lower-risk, you may be able to bundle general liability insurance with commercial property insurance in a business owner’s policy (BOP). A BOP costs less than purchasing each plan separately.
For greater protection, you can add extra coverage to your general liability policy or BOP, such as:
Liquor liability insurance
Business interruption insurance
Cyber liability insurance
Bars and other businesses that serve alcohol will need liquor liability insurance to meet state requirements or obtain a liquor license.
What Does Restaurant Insurance Cost?
Each restaurant has its unique qualities that can expose them to different types of risk.
For this reason, the insurance cost varies from business to business. Common factors that influence your rate include the types of food you sell, cooking methods, property, employees, etc.
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.