If you own a restaurant, determining which types of business insurance are necessary to keep your business in working order can be confusing. Whether you own a diner-style establishment or a five-star restaurant, you need to make sure that you are covered. The type of insurance you choose will depend very much on your restaurant's location, size, offerings, and more. This guide will help you decide which type of insurance will work best for you.
General Liability Insurance
This is one of the most important types of insurance you should consider getting to protect your restaurant. General liability insurance covers cases in which somebody is injured on your property, covering medical bills. Additionally, this type of insurance also covers issues related to third-party property damage, illness in food, and copyright infringement.
Property insurance covers a variety of equipment damage and replacements. With this insurance, you can cover furniture, kitchen equipment, and other tools that have been affected by events like fire and theft.
Business Interruption Insurance
In the event that your business is forced to close, business interruption insurance may reimburse you for income you have lost during repairs and rebuilding. This may also cover interruptions of service due to supply being cut off.
Worker's Compensation Insurance
You need worker's compensation insurance when you have employees who may experience illness or accidents at work. If you own a restaurant, this can be a beneficial service. This type of insurance can also cover medical expenses and lost wages to your employees if they are injured while working in the restaurant.
Liquor Liability Insurance
If you want to hold a liquor license at your restaurant, you may be required to have liquor liability insurance. This type of insurance policy will cover the cost of a lawsuit related to alcohol issues, including injury, property damage, and crimes.
Employment Practices Liability Insurance
If your restaurant is ever sued for workplace discrimination, harassment, or something termination-related, you want to have this kind of insurance. This situation is not uncommon in a restaurant that is considered a high-stress environment. Not only does this insurance cover legal expenses and lawyer fees, but it may also cover settlement costs.
Commercial Auto Insurance
Does your restaurant deliver? Do you cater events? If you have any sort of food establishment that utilizes a car, you want commercial auto insurance on your side. This type of policy protects you and your restaurant from events related to car accidents. This covers medical bills, repair costs, and legal fees.
If you have questions about business insurance, speak to a professional agent who can help you make a decision.