Opening a restaurant is a lifelong dream for some small business owners. And as with starting any business, it takes a lot of guts, not to mention blood, sweat, and tears, just to get it up and running.
When it comes to insuring a restaurant, there are some unique risks involved. Workers can get injured; patrons can get sick; cooling systems can break down; and the list goes on. On top of that, setbacks due to fire, theft or other unexpected events may be hard to recover from, especially before you're turning a profit.
To give yourself the best chance of success in the food-service business, you need to be sure that your restaurant can take a financial hit due to things outside your control. Here are some other tips:
Basic Coverages:
A good Business Owner's Policy will provide liability protection, protection for your property, and protection from lost income due to certain events. Let's look at these in a bit more detail.
Property: You'll want coverage not only for your place of business, but for all of that valuable equipment that is necessary for making your business run smoothly.
Liability: If a customer gets injured or their property is damaged at your business and they decide to take action against you, this type of coverage will cover legal fees, medical bills, and other expenses.
Business interruption: If you can't open your business due to a covered risk, this part of your policy will help you to make up for lost income and pay other expenses so you can reopen.
Just as with your homeowner's insurance, be sure your insurance policy addresses all the risks you care about. Most business insurance policies cover fire, theft and vandalism, but they may not cover floods, power outages or other potential risks that might be a real possibility in your area.
Other Coverages:
Liquor liability: If your restaurant serves alcohol, look into something called liquor liability insurance. This type of coverage protects your business if a patron is injured or harms someone else after having too much to drink. Some states may require you to carry this type of insurance in order to get a liquor license.
Commercial vehicle insurance: If your restaurant is doing deliveries or transporting food on a regular basis, you may want to add more vehicle insurance. Even if the vehicle is not owned by the business, if an accident happens while it's being used for business purposes, you may not be covered.
Worker's Compensation: If you have more than a few employees, your state will probably require worker's compensation, which covers your staff in the event of injury or loss of income.
Food spoilage: If you lose a large amount of inventory due to a broken freezer or power outage, this type of coverage will help you to recover from the damage. It also applies if customers are harmed by consuming spoiled food.
No small business owner wants to think about having to go through a flood, fire or other major difficulty. But if you're not prepared, your business may not recover. Talk to your insurance agent to make sure your restaurant is fully protected.
For all of your business insurance questions, call or contact Robins Insurance today.