6 key questions to make sure your restaurant is protected


No matter what type of restaurant you run, there are 6 questions that determine what kind of insurance you need.

1. Do I have customers or vendors visiting the restaurant?

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Hopefully, the answer is ‘yes.’ If you serve customers on premise or have vendors in and out, you need General Liability insurance.

General Liability can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations.

2. Do I have valuable property in the restaurant? 

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Again, an obvious answer – ‘yes!’.  You have valuable décor, furniture, registers, not to mention thousands of dollars worth of kitchen equipment.

Business Property Insurance covers losses if a fire, hail or another event damages your building and equipment.

General liability insurance is often combined with Business Property Insurance in a Business Owners Policy (BOP)

3. Do you have employees?

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If you do, you need Workers Compensation which protects you from the fallout of workplace injuries: kitchen accidents, falls, repetitive motion injuries, and more.

Additionally you might want to consider Employment Practices Liability Insurance (EPLI), which protects you from claims that you discriminated against any of your employees

4. What do you serve? Food? Drinks? Both?

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If you only serve food and non-alcoholic beverages, consider Spoilage / Food Contamination coverage. This endorsement can be added to a Property policy or a BOP. It protects you from incidents related to food contamination or spoilage.

If you only serve alcoholic drinks, consider Liquor Liability Insurance. This coverage protects you from incidents related to alcohol, including fights between drunk patrons and alcohol-related injuries and death.

If you sell both food and alcoholic beverages, consider both Spoilage Contamination and Liquor Liability Policy.

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5. Do you accept payments via credit card?

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If so, consider Cyber Risk Insurance. This coverage protects your business from breaches of customer data.

6. Do you use a vehicle for your operations?

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If you use a company owned vehicle consider Commercial Auto Insurance. This coverage protects your business vehicle from accidents and damage.

Additionally if you conduct business from you’re your vehicle (e.g., a food truck) consider Mobile Equipment / Miscellaneous Property Insurance. This coverage protects equipment you transport and use away from a fixed business location.

If you hire your vehicles or use personal autos for business purposes consider Hired and Non-Owned Auto Insurance. This coverage protects vehicles used for work that aren’t owned by the business.

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Get free personlized advice at www.coverwallet.com

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