MENUMENU
  • About Us
  • Business Insurance
        • General Liability Insurance
        • Workers' Compensation Insurance
        • Commercial Property Insurance
        • Errors & Omissions Insurance
        • Cyber Liability Insurance
        • Hired and Non-Owned Auto Liability For Small Business
        • Directors & Officers Insurance For Small Business
        • Key Person Insurance For Small Businesses
        • License Bonds For Small Businesses
        • Fidelity And Surety Bonds For Small Businesses
        • Employment Practices Liability Insurance For Small Businesses
        • Excess Liability (Umbrella) Insurance For Small Business
        • Professional Liability Insurance For Small Business
        • Media Liability Insurance For Small Businesses
        • Commercial Auto Insurance
        • VIEW ALL
  • Employee Benefits
        • Group Health Insurance
        • Group Dental Insurance
        • Group Vision Insurance
        • Group Life Insurance
        • Group Short-Term Disability
        • Group Long-Term Disability
        • VIEW ALL
  • Who We Insure
  • Resources
  • Blog
Get A Quote
Log In
Get A Quote
Log In
888-242-4675
MENUMENU
  • About Us
  • Business Insurance
        • General Liability Insurance
        • Workers' Compensation Insurance
        • Commercial Property Insurance
        • Errors & Omissions Insurance
        • Cyber Liability Insurance
        • Hired and Non-Owned Auto Liability For Small Business
        • Directors & Officers Insurance For Small Business
        • Key Person Insurance For Small Businesses
        • License Bonds For Small Businesses
        • Fidelity And Surety Bonds For Small Businesses
        • Employment Practices Liability Insurance For Small Businesses
        • Excess Liability (Umbrella) Insurance For Small Business
        • Professional Liability Insurance For Small Business
        • Media Liability Insurance For Small Businesses
        • Commercial Auto Insurance
        • VIEW ALL
  • Employee Benefits
        • Group Health Insurance
        • Group Dental Insurance
        • Group Vision Insurance
        • Group Life Insurance
        • Group Short-Term Disability
        • Group Long-Term Disability
        • VIEW ALL
  • Who We Insure
  • Resources
  • Blog
  • InsureYourCompany.com
  • Blog
  • Business Insurance
  • What You Need To Know About Insurance For Restaurants

What You Need To Know About Insurance For Restaurants

Dan Levenson July 07, 2016

Business Insurance Business Owner Resources commercial auto insurance Commercial Property Insurance general liability insurance Insurance For New Businesses Liability Insurance Life Insurance Workers Compensation

It might not be the most exciting part of opening a restaurant, but one of the most vital steps in opening a new eatery is getting insurance coverage.

There are many potential problems that you need to be prepared for in the food industry, ranging from equipment failures to slip-and-fall lawsuits. Depending on your restaurant’s location, you will need certain types of insurance to comply with local laws. You may also need insurance to qualify for bank loans and mortgages.

Common Types Of Restaurant Insurance

These types of insurance should be seriously considered when opening any type of restaurant.

Commercial Property Insurance

This is important for protecting your restaurant from property damage resulting from a variety of disasters such as fire, wind/hail storms, vandalism, or smoke damage. Unfortunately, for coverage in the event of natural disasters such as earthquakes or floods, you may need to get specific types of insurance that cover those circumstances.

General Liability Insurance

This probably goes without saying, but liability insurance is needed in case any person is harmed in your restaurant. Whether you or your staff are to blame or not, if a person gets sick after eating at your restaurant, you will want to be protected by liability insurance.

Liquor Liability Insurance

A restaurant has much greater potential to make profits when offering alcoholic beverages on its menu, but with this advantage comes additional risks. Most states require businesses that have a liquor license to carry liquor liability insurance. Also, liability coverage is important to have in case an intoxicated customer drives away from your establishment and comes to harm or hurts others.

Commercial Auto Insurance

You may want to have this insurance if your business has a company vehicle. Many restaurants use promotional vehicles and company cars. This may be covered by your general liability policy, but you should ask your insurance agent to be sure.

Workers’ Compensation

Most states require employers of any type of business to carry workers’ compensation. Workers’ comp protects the business when an employee gets injured at work. Check your state laws so you are aware of your compliance obligations. For example, it is required in New Jersey.

Life Insurance

This may not seem directly relevant to the operation of a restaurant, but it may be necessary for you to carry life insurance to satisfy the requirements of your mortgage. Also, life insurance is important if you have a family and you want to make sure they are taken care of should something tragic happen to you.

Fire Insurance

The purpose of this insurance may be somewhat self-explanatory, but it is nonetheless worth mentioning. It’s vital for a restaurant to be covered against fire damage, especially considering the added risks involved with operating gas cooking appliances.

Other Types Of Insurance For Restaurants

Depending on your circumstances, you may find that the standard types of insurance may not completely meet your needs. Luckily, there is an insurance policy for just about any type of object or circumstance. Just be sure to weigh the additional costs against the benefits of carrying these additional types of insurance.

Food Contamination Insurance

Occasionally there are situations beyond your control where food either spoils or is exposed to various types of contamination. This insurance may not protect you from a class-action lawsuit, but it will help you recoup losses if you need to replace the food in your walk-in refrigerator.

Loss of Business Insurance

Under some circumstances, when your business loses sales, this type of insurance may compensate you for financial losses. It’s important to understand the likely return on investment with this, given that in many cases the aggregate cost of the insurance payments may exceed the claim payouts. If you feel your business is at a particular risk for this type of loss, it may be a smart investment.

When looking over all these various types of insurance, the task of insuring your restaurant may seem somewhat daunting. When opening a new restaurant, it is important to have a knowledgeable and trustworthy insurance agent in your corner to guide you through the process. Experienced agents know the local laws and regulations, and can help you make the best decisions about the types of insurance that will safeguard yourself, your restaurant, and your customers.

Free Business Insurance Assessment

Need business insurance?

Get a free business insurance quote today!

Subscribe To Our Blog

  • Stay up to date with the latest insurance news and business advice from InsureYourCompany.com!

Business Insurance

  • General Liability Insurance
  • Workers’ Compensation Insurance
  • Errors & Omissions Insurance
  • Excess Liability Insurance

Employee Benefits

  • Group Health Insurance
  • Group Dental Insurance
  • Group Vision Insurance
  • Group Life Insurance

Business Insurance

  • General Liability Insurance
  • Workers’ Compensation Insurance
  • Errors & Omissions Insurance
  • Excess Liability Insurance

Employee Benefits

  • Group Health Insurance
  • Group Dental Insurance
  • Group Vision Insurance
  • Group Life Insurance

Small Business Resources

  • Business Insurance Blog
  • Get a Free Insurance Quote
  • Schedule an Assessment
  • Insurance for Businesses 101

InsureYourCompany.com

225 Gordon’s Corner Road, Suite 1H
Manalapan, New Jersey 07726
888-242-4675
Privacy Policy | HIPAA Policy | Contact Us
Created by potrace 1.15, written by Peter Selinger 2001-2017

Copyright © 2023 - InsureYourCompany.com, powered by Technology Insurance Associates LLC

Custom website design and development powered by the New Possibilities Group.

888-242-4675
Get a free quote