Starting your own restaurant and food business takes dedication and a lot of hard work. People that work in food service know the challenges facing anyone trying to acquire the finance, staff, equipment, and property before you even start worrying about bringing in customers. That’s why you need to protect your investment with the proper insurance.
With the right commercial insurance, your restaurant or food business will be protected from incidents like:
- Spoiled food
- Customer and employee injuries
- Fire damage
- Equipment malfunction
And so much more.
There are several types of coverage that all restaurant and food business owners should consider. This includes commercial property insurance, general liability insurance, and business income insurance.
If your restaurant is in a building that you own, or if you lease the space, or work out of your home, commercial property insurance will help to protect your business. You don’t want to have to permanently close your operation because of a kitchen fire, burst drainpipe, roof damage from a storm, or vandalism. These incidents could cost thousands out of pocket, but not if you have commercial property coverage.
This type of insurance covers the building itself; the contents inside the building like tables, refrigerators, and office equipment; the food and other inventory; the landscaping and signage surrounding the property; and other businesses’ and individuals’ property on the site. The insurance will either provide you with the cost to replace the damaged or destroyed property, or the actual cash value to purchase property minus the depreciation costs. There is a difference in premium payments between the two coverage types, but an independent agent will help you to determine which one is right for your business.
The second type of insurance to consider is commercial general liability insurance. Accidents can and will happen during the regular operations of your restaurant or food business. A cook could cut himself with a knife while preparing food, a customer could slip and fall on a newly mopped floor, or a waiter could cut himself cleaning up a shattered wine glass. With general liability coverage, the medical expenses related to an injury will be covered. If the employee, customer, or another third party involved in an accident at your business decides to sue, insurance will help to pay the attorney fees.
General liability also protects against claims from damaged property. For example, if you own a catering business and malfunctioning equipment causes a fire in someone’s home, you will be held liable. This means you will have to pay to repair damages to the home and any lawsuits fees unless you have insurance coverage.
Another form of coverage all food and restaurant business owners should consider is business income insurance. One of the most difficult situations to overcome is when you have to temporarily close your business because of a disaster. For example, a powerful rainstorm could cause hail damage to your roof, expose a leak in the shingles, or wreck the siding. It may be necessary to close your business while the repairs are completed, causing a loss in income. Business income insurance doesn’t pay to repair the damages, but helps to replace your income and other expenses like a mortgage, paying employees, and temporary relocation.
In the links below, you can learn more about the coverage that will work best for your specific business. This will include information about additional policies like:
- Equipment breakdown coverage
- Commercial auto insurance
- Hired and non-owned vehicles liability
- Workers’ compensation insurance
- Employee practices liability insurance
- Property and sewer/drain coverage
- Utility services insurance
- Spoilage insurance
- Employee dishonesty coverage
- Liquor liability insurance
- Inland marine insurance
- Business Owners Policy (BOP)
Speaking with your independent insurance agent is the first step to determining which policies are right for you and your business. Your agent will advise you on the maximum limits of liability your business should have, and the coverage you should consider.
Being out on the road with other drivers while trying to arrive at your customer’s location as quickly as possible can be very risky. There is the potential for road accidents with the employee’s car or the business-owned car, ruined pizzas, and dissatisfied customers. To prevent the pizza business from being held liable for everything from property damage to injury and theft, consider pizza delivery insurance.
If you own a food truck or concession trailer, you may think that a small truck means a small business and small insurance coverage. However, a lawsuit from a customer who suffers food poisoning, or trips over the electric cables running from your truck, can destroy your business. Concession trailer insurance will cover everything from damages to your truck or trailer, protection for your equipment while in transit, coverage for the vehicle towing the trailer, general liability, and protect against employee accidents and theft.
Whether it is an event at a large company, a wedding, or a birthday celebration, running a catering business can be a great way to share your talent for cooking with a variety of customers and in a variety of locations. However, traveling to and from events, storing your equipment, and working in different locales each week can present certain risks. With catering insurance, your assets will be protected.
Everyone loves getting a fresh pastry from the local bakery. Owners of these shops face similar risks as other restaurants. Your employees, customers, and property all need protection. Accidents happen, food spoils, and equipment can breakdown. That’s why having a specialized bakery insurance policy is especially important.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.