Although securing restaurant insurance isn’t a glamorous part of owning a restaurant, bar, tavern, or café, it is incredibly important to your business’s success. Having the right insurance policies in hand can help owners overcome obstacles, protect their pockets, and flourish in the food industry. With so much to consider, it’s worthwhile knowing how to go about picking the right policy for your individual needs and location. Here’s a quick guide on how to find the right restaurant insurance today.
What is restaurant insurance?
Restaurant insurance is designed to safeguard the business from disasters. There are different types of coverage, so it’s important to understand what your risks are and address these threats with suitable policies. Your café out of town will have different risks to someone’s bar in the city. A quick-service diner will have different threats than a fine dining establishment. When looking for insurance, consider the type of restaurant, the location, and other factors before you pick a policy.
Types of restaurant insurance
In order to choose the right insurance coverage for your business, you should understand the different types of policies that exist. There are many to choose from, and it can be overwhelming to choose coverage without first knowing your options. Take a look at just a few of the most common restaurant insurance coverages:
Property insurance
This covers your business property from accidents, like a fire in your restaurant or a burst water pipe that damages equipment and tableware. Some insurances offer coverage for natural disasters such as storms and hail, but keep in mind that not all natural disasters are covered. If you want protection from floods, then a separate flood insurance policy will need to be purchased. Whether or not you own or lease the space, you should always have a property insurance policy.
Liquor liability insurance
By far one of the most important policies, liquor liability insurance is necessary for establishments that have a liquor license. If you serve alcohol, then this insurance coverage protects your brand and pocket if a patron has too much to drink and hurts someone, for example. This liability protection will protect the future of your business.
General liability insurance
Say a customer slips and falls on your newly washed floors. They could injure themselves and hold your establishment responsible. Fortunately, general liability insurance is designed to protect your business in these situations, regardless of whether you are at fault or not. Medical expenses for injuries, repairs for property damage, and legal fees can get expensive, which is why you have this coverage to step in to help if the worst happens.
Food contamination insurance
As a business always operating with a fresh food supply, it’s possible that a whole lot of your inventory can spoil if a power outage causes your refrigerators to stop working. There are many different ways food contamination can occur in a restaurant, which is why it’s a good idea to secure protection against this expensive situation. If you have food contamination insurance, you will be able to get the food replaced, as long as the contamination was not your fault.
There are many different policies to choose from. Work with a qualified agent who knows the needs and risks of restaurants. Having a helping hand can ensure that you secure the right coverage for your establishment and protect your brand from costly and harmful situations down the road.
ABOUT RMS Insurance Brokerage, LLC
At RMS Insurance Brokerage, LLC, our expertly crafted policies are written specifically for the hospitality industry. We offer custom-tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (516) 742-8585.