Restaurant insurance is a great way to protect your business from unpredictable events. Insurance is a necessity in everyday life, so it is crucial for your business. Business insurance for restaurants covers property, liability, workers comp, and commercial auto.
Property insurance protects your business from a physical standpoint. This includes the actual building, restaurant equipment, food in the freezers, and also can consist of coverage for business interruption if your business isn’t able to operate due to things such as fire, remodeling, or a natural disaster.
This form of insurance is to protect your business from claims from others, including lawsuits. Liability insurance starts with general policies, and get more explicitly with extensive liability policies, liquor liability, assault and battery liability, employer practices liability, and cyber liability. To covered fully, some of these risks can be combined into a single policy, but there are others that require another policy.
Workers Comp Insurance
In reality, this type of insurance is often issued by the government, it covers employees for wage replacement and medical benefits for accidents on the job.
Commercial Auto Insurance
This type of insurance protects vehicles that are owned, leased, or borrowed by the business. For instance, if your employees are using their cars to deliver for a pizzeria, your business is exposed, and commercial auto insurance is highly recommended. Furthermore, this insurance is also something to consider if you have valet service.
Insurance in the restaurant industry is based on the specifics of your concept. Additionally, insurance applications ask a myriad of questions, and the underwriters of the insurance company do their research on your restaurant before they decide what to quote you for.
Furthermore, there are ten significant factors that insurance companies consider when they price your coverage:
- Volume (sales, payroll, square feet)
- Type of property
- Activities (entertainment, ID checkers, mechanical bulls, delivery, off-premises catering)
- Hours of operations
- The proportion of alcohol sales
- Loss history
- Years in business
- Levels of coverage
- Lease requirements