The restaurant business is a high-risk industry that requires specific insurance coverage to protect against common perils. There are many types of restaurant coverage, and each is unique to its location, clientele and hours of operation. A knowledgeable insurance broker is essential to help you understand your options and find the right policies for your specific business.
Food service businesses are exposed to a wide range of risks, including property damage, slip and fall accidents, food contamination, and worker injuries. These risks can be costly, but the right insurance policy can cover many of these incidents. In addition, some policies can also protect against business interruption or lost income due to an event that forces the restaurant to close.
A business owners policy (BOP) is one type of commercial insurance that can provide multiple protections for restaurants. This type of coverage typically includes general liability and commercial property insurance, which can be bundled together for a discounted rate. It also may include workers’ compensation insurance, which covers medical care and expenses for employees who are injured at work, and business interruption insurance, which helps pay for lost revenue while the restaurant is closed for repair or remodeling.
Employment practices coverage (EPLI) is another important option for restaurant owners, as it can protect against lawsuits that arise from employee-related issues such as discrimination, sexual harassment and more. Without this insurance, a single claim can be extremely expensive and can potentially shut down the business.
Many restaurants also need commercial auto and garage keepers insurance, which can provide coverage for vehicles that are owned or leased by the restaurant as well as vehicles that are in their care, custody or control. This can protect against claims from third parties in the event that these vehicles are stolen or damaged on the premises.
Other common types of restaurant-insurance are flood and cyber insurance, which can protect against loss of property or data due to weather-related events or computer hacks. These policies can be purchased separately or as part of a BOP, and it’s important for restaurants to have appropriate limits to protect against the costs associated with a major loss.