Working in the food services industry can present unprecedented risks. As a restaurant owner, it’s important to assess the various needs of your business before deciding what coverages you require. To help you make an informed decision, below are five insurance coverages every restaurant owner needs to include in his/her restaurant insurance policy.
Commercial General Liability
Every restaurant business owner should have commercial general liability (CGL) insurance. General liability protects you from common complaints filed from customers, including slip and fall injuries on or inside your restaurant, and food poisoning.
Business interruption insurance
As a restaurant owner, you always want to be protected in the event of an unexpected disaster. Business interruption insurance, or business income insurance as otherwise known, helps you do that. Instead of having to incur financial losses following a disaster, business interruption insurance pays for loss of income during a complete or partial shutdown following an insured property loss, and also covers extra expenses to get you up and running (e.g., the cost of renting a temporary location). Most commercial property insurance policies include coverage for business income loss as a part of an endorsement to the insured’s property policy.
Enhanced wine valuation coverage
If you serve wine at your restaurant, then you’ll want to consider obtaining enhanced wine valuation coverage. This unique coverage insures your high-valued wine collection from theft or loss, and covers the value of the wine at the price the wine could have been sold for as individual servings.
Food contamination coverage
Your food inventory and equipment are the lifeblood of your business. Mishandling and improper storage of food can result in a food-borne illness outbreak and customer claims, which is one of the greatest risks facing the food industry. It could even end in government officials shutting down your business following a restaurant inspection. With food contamination coverage, you’ll be covered in the event of a food-related loss. Coverage typically extends to loss of income, required cleaning of equipment, and food replacement costs from contamination.
Non-owned auto policy
As a restaurant owner, you may rely on your employees to use their personal vehicles to make deliveries and/or run business-related errands. This puts your employees at risk of getting involved in an automotive accident and your business being held liable for ensuing claims. A non-owned auto policy protects your business if your employees have an accident while carrying out business in their personal vehicles. If a third party tries to sue your restaurant for injuries or property damages related to the accident, your non-owned auto coverage will cover your company in a liability claim.
Whether you own a restaurant or run a catering business, finding the right insurance policies to protect your business matters. With these five coverages, you’ll be on your way to meet the demands of your food business with complete peace of mind.
