Restaurateurs’ most common insurance questions include: what is the restaurant business insurance coverage, and what does it cover? A good restaurant insurance policy should cover many areas of your business. Listed below are some essential types of coverage for your restaurant. Commercial property insurance, EPLI, Liquor liability insurance, and workers’ compensation insurance are some examples of the range you should consider.
EPLI
Employers should not overlook EPLI coverage as part of their restaurant insurance policy. This insurance protects restaurants from lawsuits stemming from alleged employment practices. Most small and medium-sized restaurants do not have an extensive employee handbook, nor does the budget permit the expense of hiring an attorney. Therefore, it is critical to protect your business from these claims.
The most crucial benefit of EPLI coverage is its protection for your business from lawsuits. Regardless of whether your restaurant has seasonal employees, an EPLI policy will protect you from the costs of defending yourself against employee claims and wrongful termination. The policy will also pay for the expenses related to court proceedings, ensuring that such claims do not harm your business. For instance, an employer may be sued by a former employee if a restaurant employee damages their vehicle.
Commercial property insurance
While your restaurant may be small, it is still vulnerable to lawsuits and other financially crippling liabilities. After all, a restaurant’s kitchen can be hazardous, and food can spoil, so there is a strong need to protect your assets. A restaurant insurance policy can protect you from these pitfalls and provide the peace of mind needed to run your business smoothly. If you need help finding reliable coverage, consider getting a Progressive Advantage(r) Business Program quote.
While a restaurant insurance policy should cover the building itself, it should also cover critical equipment and valuable papers stored near the business. While most policies cover the cost of recovering these items, there may be times when you need additional coverage. For example, your policy will cover damage due to specifically named perils, not general wear and tear or natural disasters. If this is the case, you’ll want to look into additional coverage to cover other risks, such as fire and theft.
Liquor liability insurance
The costs of liquor liability insurance are driven by three factors: sales, packaging, and loss control. Higher sales mean higher premiums. Few businesses purchase a monoline liquor liability insurance policy and bundle these policies into a single procedure. Loss control measures include proper training and employee supervision. In addition to reducing costs, loss control measures can help you control the potential for claims. A restaurant insurance policy should also include coverage for liquor liability.
Liquor liability insurance premiums can range from hundreds to thousands of dollars annually. Some companies offer separate policies that cover this extra cost; others provide liquor liability coverage as a restaurant insurance policy add-on. While premiums for liquor liability insurance vary widely, some policies cover as much as $1 million, while others only cover a few hundred dollars.
Workers compensation insurance
In New York, employers must carry workers’ compensation insurance coverage. This policy protects business owners from lawsuits and covers the medical costs of employee injuries. The insurance coverage can also cover death benefits. Restaurant owners should be aware of these benefits and consider them when purchasing an insurance policy. In addition to protecting your business from lawsuits, workers’ compensation insurance can help you comply with state laws.
As you can imagine, injuries are unfortunate in a busy kitchen. The injuries that can arise in these environments can cost thousands of dollars. These accidents affect employees but also cause business owners to lose a lot of money. Worker’s compensation insurance pays medical bills and partially recoups lost wages for injured employees. This insurance protects restaurant business owners from significant financial losses caused by work-related injuries.
Extra Expense coverage
If your restaurant is not covered for a covered loss, you should consider obtaining extra expense coverage. This coverage can reduce your overall business loss by covering additional expenses to maintain revenue. It may not be easy to estimate how much you could lose without knowing what to expect in advance, but a well-designed policy will give you peace of mind.
For example, extra expense coverage may pay for temporary business interruption expenses such as rent, supplies, and food. It pays for these expenses when your business is closed or temporarily relocated to a temporary location. For example, if your business is located in a city that suffers from severe weather, it may not be able to continue operating without the help of extra expense coverage. This type of insurance is essential if your business relies on continuous services, such as security, food, or airport shuttle service.
Conclusion
In conclusion, restaurant owners must carefully consider the various types of insurance coverage available to protect their businesses. Each policy is crucial in mitigating potential risks, from commercial property insurance that secures your building and equipment to liquor liability insurance that shields you from alcohol-related incidents. Don’t forget about the importance of workers’ compensation insurance, which covers medical expenses and lost wages for injured employees.
Additionally, extra expense coverage can help you maintain revenue during unexpected interruptions. By taking the time to understand your options and creating a comprehensive restaurant insurance policy, you’ll gain peace of mind knowing that you’re prepared for whatever challenges come your way. Remember, investing in the right insurance coverage is not just a smart financial decision—it’s also a vital step in ensuring your restaurant business’s long-term success and stability.
