Restaurant Insurance

Because restaurants are unique enterprises, they will need customized benefits designed to cover their specific operating liabilities. To get the right coverage, you will have to buy several different types of coverage. Essential coverage to consider includes:

• Property Insurance
• General Liability Insurance
• Business Interruption Insurance

If you are a small business owner, then you might be able to buy these policies through a Business Owners Policy (BOP). A BOP is designed to include the policy limits and terms that are best suited for small businesses. However, you still can customize and augment them with other coverage as needed.

You will have to buy supplementary policies alongside your BOP to properly optimize your coverage:

• Workers compensation insurance pays employees injured on the job a supplementary income during their recovery period. New York requires nearly all employers to carry this coverage.
• Commercial auto insurance applies when you own or use a vehicle on behalf of the company. So, if you own a catering truck that you use for deliveries, you might need this plan.
• Liquor liability insurance is necessary to buy if you serve alcoholic beverages to customers. Should an intoxicated person cause someone else harm because you served them alcohol, the harmed person might blame your restaurant. This coverage can cover those third-party losses.
• Equipment breakdown insurance pays when essential systems (HVAC, refrigeration, cooktops, etc.) unexpectedly fail, and as a result, cause you to limit or halt operations. These policies can pay for both repairs to these systems and income lost because of the failure.
• Food spoilage coverage helps you replace food that spoils due to a hazard in the business.

There are many other policies that you might need, such as communicable disease coverage, cyber liability insurance, errors & omissions coverage or crime insurance. In some cases, you can add these benefits as endorsements on your BOP, while in other cases you will have to buy separate plans.

You will want to have the right restaurant insurance in place before you open your doors. In many cases, you must obtain certain coverage before you can file for the necessary operating licenses.

Speak to your E.A. Funk & Associates agent about the restaurant coverage that you will need to put in place. We are more than happy to help you choose the plans that are best for your operational needs.

When your restaurant is adequately insured, you have some protection against the financial consequences of unexpected expenses.

Property insurance helps protect your business from paying 100% of the costs to rebuild after a covered event such as a fire or severe weather event. It may also help you pay everyday bills if you must shut down your restaurant to allow for covered repairs.

Your general liability policy helps cover the costs of accidents on your property and expenses associated with your restaurant’s liability for accidental damage.

When you have proper restaurant insurance with coverages designed to help meet your company’s future needs, you can concentrate on growing your business.

Because you will need several different types of insurance for your restaurant, the costs of these plans will vary considerably.

Different carriers will look at numerous risk factors (the size of your business, your history of insurance claims, payroll, location, etc.) to figure out your eventual premium. If you are more of a risk to insure, then you will likely have to pay more.

E.A. Funk & Associates is committed to helping all our customers build comprehensive restaurant policies that are best for their budgets. We will help you compare the coverage options of numerous carriers to pinpoint the one that offers you the best savings opportunities.