- Posted by Daniel Simcock
- On January 24, 2023
- commercial insurance, food business, Insurance Tips, liability insurance, property insurance, restaurant, workers compensation
Starting a restaurant can be a challenging and exciting endeavor, but it also comes with its fair share of risks. To protect your business and your personal assets, it’s essential to have the right insurance coverage in place. In this article, we’ll discuss some of the key insurance policies you’ll need to consider when starting a restaurant.
The first and most important insurance policy to consider is general liability insurance. This type of coverage will protect your business from claims of bodily injury or property damage that may occur on your premises. For example, if a customer slips and falls in your restaurant, general liability insurance will cover the cost of any medical expenses and legal fees. It is also important to note that this type of insurance will also protect you if a customer gets food poisoning and claims against your business.
Another critical insurance policy to have is property insurance. This coverage will protect your restaurant’s building and contents from damages caused by fire, storm, theft, and other perils. This is important to have in case of any natural disaster or other unexpected event that may cause damage to your property.
Next, you’ll want to consider workers’ compensation insurance. This coverage is mandatory in most states and provides benefits to employees who are injured on the job. It will cover medical expenses, lost wages, and other costs associated with an employee’s injury. This is important to have as it protects your employees and also protects your business from lawsuits.
Another important coverage is commercial auto insurance. This coverage is for any vehicles used for your business. If one of your employees is involved in an accident while driving a company vehicle, commercial auto insurance will cover any damages and injuries.
In addition to these key insurance policies, you may also want to consider other types of coverage, such as liquor liability insurance, if you serve alcohol at your restaurant. This coverage will protect you from claims arising from customers who become intoxicated and cause harm to themselves or others.
Lastly, it is important to have an umbrella policy for your restaurant. An umbrella policy is an additional coverage that provides extra liability protection over and above your other policies. It will provide additional protection against major claims, such as a customer getting seriously injured on your property.
In conclusion, starting a restaurant comes with a lot of risks, but with the right insurance coverage in place, you can protect your business and your personal assets. Be sure to consider general liability insurance, property insurance, workers’ compensation insurance, commercial auto insurance, liquor liability insurance, and an umbrella policy. It is also important to work with a reputable insurance agent or broker who can help you navigate the different options and find the coverage that best suits your needs.