Selecting the right type of insurance for your restaurant business is vitally important. You do not want to skimp on having enough protection for your restaurant. Insurance can protect you from many problems such as liability claims and broken equipment. States may require certain restaurant insurance; your bank and mortgage loans may require certain types of insurance as well.
Here are some common types of restaurant insurances that you should consider:
1. General Liability
General liability insurance will protect you from lawsuits that may be filed due to injury or someone getting sick after eating at your restaurant (whether you were at fault or not.) This is an essential insurance in today’s world.
2. Property Insurance
Property insurance covers your property in case of fire or other unforeseen events. Usually property insurance is a basic coverage; you may need to consider additional policies for natural disasters such as floods or earthquakes. If you carry a mortgage on your property or any equipment, you should carry a property insurance policy.
3. Fire Insurance
You may need to carry an additional fire insurance policy in order to ensure you are fully covered in the case of a fire. A fire can be devastating for your restaurant business. You need to be careful because many property insurance policies contain either an “agreed value clause” or a “coinsurance clause.” These clauses require you to purchase a certain dollar limit based on the value of your property or you may incur a penalty.
4. Liquor Liability Insurance
Most states require that any establishment that offers liquor must carry liquor liability as part of their insurance portfolio, including New York. This insurance will protect you if something happens as a result of a customer drinking too much and hurting themselves or someone else.
5. Automobile Liability Insurance
Your company vehicle needs to be covered with an automobile insurance policy. Your general policy actually may cover company vehicles so check with your insurance agent to see if you need additional coverage or not.
6. Employee-related Insurance
If you employ staff to work for you, you will need to purchase worker’s compensation and unemployment insurance. Worker’s compensation protects you if an employee is injured on the job; unemployment insurance covers your employees once they leave your restaurant until they can find other work.
7. Life Insurance
Life insurance may be required by your lender or financing office in order to protect your lender. It’s also a good idea to carry adequate life insurance in case something happens to you so that your family isn’t encumbered with a restaurant and bills they don’t want or don’t know how to run.
8. Other restaurant-related insurances you may want to consider:
· Loss of business insurance
· Food contamination insurance
· Specific peril insurance (i.e. earthquake or flood insurance)
There is a lot to consider when seeking to protect your restaurant investment by purchasing the right insurance policies. You can trust Tanner Insurance Agency to know the laws that pertain to your situation, how much insurance you need and what the limits of each should be. Make sure you are prepared in the event of a calamity or unexpected circumstance by contacting an agent today. We are specialists in New York restaurant insurance and even offer a Restaurant Savings program that will help you get the best coverage for the best pricing. Contact us today at 1-888-484-2467 or click here to fill out our quote form. We look forward to talking with you!