Restaurant Insurance: What Policies Do You Need?

There are over 1 million restaurants in the United States and that’s a significant amount of competition. In the competitive restaurant business world, you must do everything possible to protect your reputation, business and brand. This includes getting the right types of insurance.

Without coverage, everything you’ve worked for can be destroyed overnight. Are you wondering what restaurant insurance policies you need? Keep reading to learn all about restaurant insurance with this in-depth guide.

Who Needs It and Why?

Any establishment that serves food must have insurance coverage. This includes cafes, delis, caterers, pizza shops, ice cream parlors, or a restaurant that offers a complete dining experience. 

The right insurance is crucial because all it takes is one accident for your business to be in jeopardy. It can make all the difference knowing you have a safety net to fall back on.

Are you wondering what kind of coverage is necessary for your establishment? We will discuss a few things to consider.

What Does Restaurant Insurance Cover?

It’s important to remember that not all restaurant insurance policies are alike. Despite this, there are several main areas of coverage you should make sure your policy has.

Any reliable insurance agent would recommend a business owner’s policy (BOP) for people working in the food and beverage industry. This is a comprehensive package that comes with three primary insurance protections, including general liability, commercial property, and business income.

Aside from these three, worker’s compensation is another coverage you probably won’t want to be caught without. In New Jersey, workers’ compensation insurance is required. Even if your business only hires part-time or seasonal employees, you need workers’ comp insurance in New Jersey. 

Restaurant Property Coverage

It’s common for people to try to forgo insurance because they think that a tragic event won’t happen to them. However, all it takes is one accident for something life-changing to occur. For instance, a malfunctioning stove could end up burning down your entire property.

Instead of worrying about this possibility, you can have peace of mind knowing that your property is protected. Whether it’s a fire, a flood, or vandalism, restaurant insurance can ensure you’re back in business as soon as possible.

Another type of property you shouldn’t neglect is any restaurant vehicles you might own and use for your operations. Even if you have only one vehicle for business use, it’s crucial to protect it with insurance, too. It takes a single car accident to total a vehicle and prevent your business from running at full capacity.

Protecting Your Restaurant Operations

Many scenarios may prevent your business from operating correctly.  

Scenario One: Water Contamination

From washing dishes to serving water at the table, you can’t run a restaurant without it. If the water is unsafe/undrinkable, you can get covered for a loss of business income if your restaurant has to shut down for a while until the water is clean again.

Scenario Two: Crime

Another element that every restaurant business insurance plan should have is business crime coverage. From armed robbery to an employee who steals from the register, there are plenty of potential crimes you should always be mindful of. Without this protection, you could lose money to the point of having to close the restaurant for good.

Scenario Three: Drunk Driving

Did you know that around 1.5 million people are arrested yearly for attempting to drive while under the influence? Unfortunately, many people don’t know how to drink responsibly. If you serve alcohol at your restaurant, there’s no guarantee you’re serving someone who is a responsible drinker.

With liquor liability coverage, you can protect your business if you accidentally serve an intoxicated person who causes property damage. There’s even a possibility that they could injure another one of your patrons or your employees. This coverage can also activate during a situation like that.

Caring for Your Restaurant Team

In most states, workers’ compensation is a requirement and New Jersey is one of them. This kind of coverage protects employees under state laws and provides medical care, death, disability, and rehabilitation benefits for workers who are injured or killed while on the job.

A single slip and fall could cause someone to experience chronic pain in their back that requires extensive medical treatment. Workers’ comp can give you and your employee peace of mind, knowing that your employee’s medical expenses will be taken care of.

Employment practices liability insurance is another form of protection that some business owners neglect. This can help you in the event of workplace harassment. From bullying to sexually inappropriate comments, all it takes is one lawsuit to jeopardize your entire business.

If your restaurant gets hit with a lawsuit, employment practices liability insurance can help cover those costs.

Are You Ready to Get Restaurant Insurance?

Now that you’ve learned about restaurant insurance with this guide, it may be a perfect time to reconsider your restaurant’s insurance policies. The goal of having the right coverage is to ensure your business is protected if something happens.   

Feel free to contact us with any questions you might have and to request a quote. We’re always happy to help out.