Restaurant owners must be certain that their businesses have the adequate coverage needed to protect their assets. It is so important to start with securing the foundational protections such as commercial property and liability coverages, which can be purchased through a business owner’s policy (BOP) or a standard package policy.
General Liability
Restaurants need to obtain general liability insurance to take on a claim relating to bodily injury or property damage incidents like slips and falls. This coverage can also protect you from product liability cases so the restaurant won’t go under from claims arising from food-borne illnesses. Keep in mind that consumption of food on the premises is often not considered a ‘product’ under a standard policy without a specified endorsement. An endorsement ensures that that claims regarding your food will be covered under products/completed operations coverage, regardless of where it is consumed. Also, restaurants are at great risk of fire damage. If you lease the building in which you operate and a fire happens to damage the building, the landlord is likely to sue for property damage. A liability policy takes care of damage to rented premises and is typically subject to a sublimit so ensure this meets your bussines’ protection needs. Do you offer valet parking? Or provide benefits to employees? These are just a couple of other areas of concern that you must discuss with your agent to make sure you cover all your risk exposures.
Other Liability Coverages
Liability coverages restaurants could benefit from:
Liquor Liability
General liability coverage will not protect you from bodily injury or property damage resulting from intoxication due to your sale or service of alcohol. When any alcoholic beverages are served, it is crucial to have liquor liability insurance.
Employment Practices Liability
Employees may sue restaurants for discrimination and harassment, which is not covered by general liability insurance. Protect your business with employment practices liability coverage.
Umbrella
This protection extends beyond your general liability and commercial auto policy limits as well as for claims that aren’t covered by those policies.
Commercial Property Insurance
Property coverages to consider:
Sewer Backup
A sewer issue in a restaurant can lead to some serious repercussions. Sewer backup coverage can be your saving grace in a time of need.
Business Income
If property damages cause your restaurant to shut down, the loss of income can be devastating. This is where business income coverage steps in.
Utility Interruption
Since electricity, gas, water, and communications services are likely required for you to operate, an interruption of any of these may cause a disruption. Consider the advantages of having utility interruption coverage.
Extra Expense
If property damages force you to operate by renting other equipment or moving to a temporary location, extra expense coverage will cover those additional costs.
Spoilage
Stored cold food can easily spoil when equipment breaks down from a power outage. Insure against costly spoilage losses with spoilage coverage.
Equipment Breakdown
Do you use steamers, boilers, ovens, refrigerators, freezers, ice makers, or food warmers? With even a small electrical issue, this equipment can be damaged. Equipment breakdown coverage can take care of those expenses.
Electronic Data Processing
Nowadays computer systems are used to operate most businesses. Protect this data and equipment with electronic data processing coverage.
Employee Theft
Sadly, it’s not unheard of for employees to steal, whether it be food, cash, or anything else on the property. Employee theft coverage is available to manage that.
Commercial Auto Insurance
If you own vehicles that pick up supplies, deliver food, or are used for any other business purposes, commercial auto insurance should cover non-owned autos, hired autos, and restaurant-owned vehicles.
About Sine Insurance
At Sine Insurance Group, we are dedicated to providing you with custom-tailored insurance policies to protect your assets. Our comprehensive packages have been expertly crafted to serve St. Louis and the surrounding areas for the past 25 years. For more information about our products, contact us today at (855) 700-0889.