A restaurant insurance bundle is a series of insurance policies covering financial risks restaurants and other food service establishments face. It includes commercial property and liability coverages.
It also protects against a variety of unexpected events that could cause damage to your business. These include natural disasters, fires, and theft.
Property Insurance
A restaurant insurance policy is a bundle of coverages that protect your restaurant against financial risks like lawsuits, equipment breakdown, and property loss. Choosing the right policies can help minimize financial risk and keep premiums affordable.
For instance, Mountain Insurance provides Denver restaurant insurance covering general liability and commercial property insurance, the most common policies restaurants buy. These two coverages protect your business from customer injuries or property damage claims, copyright infringement lawsuits, and food-borne illnesses.
Depending on your specific needs and location, you may need more than just these two types of coverage.
If your restaurant has employees, it’s essential to insure against theft of their personal property. This type of coverage can also protect you if an employee steals money or other business items. In addition, it can pay for damages resulting from a theft incident and help you recover lost income if you are closed due to the incident.
Liquor Liability Insurance
Restaurant insurance is coverage that can protect your business from liability and property damage if a customer becomes injured or causes injury to a third party. Liquor liability coverage can also cover any legal costs associated with defending your business in the event of a lawsuit.
Liquor liability can be added to your general liability policy as an endorsement or purchased independently. The location of your company and its susceptibility to alcohol-related claims are two factors that affect the cost of liquor liability insurance.
The cost of liquor liability insurance can be reduced with a well-managed business plan and robust risk management practices. Be sure to review the policy details and ensure that your policy is tailored to your unique business needs.
Business Interruption Insurance
If your restaurant must close due to an insured incident, business interruption insurance, also known as business income insurance, can assist in making up lost revenue and covering business expenses. Coverage can be included in a business owner’s policy (BOP) or purchased separately.
Generally, business interruption coverage requires a direct physical loss or damage to the insured property. That means a restaurant that shuts down because of COVID-19 will likely not get business interruption coverage from its policy because The infection did not directly result in property loss or harm.
Most restaurant owners buy a business owner’s policy that bundles property, liability, and business interruption coverage. These policies are usually less expensive than purchasing separate policies and can help ensure you have sufficient underlying limits.
Workers’ Compensation Insurance
Restaurants present a unique set of hazards and injury risks. Workers are often exposed to unpleasant working conditions, spilled food and drinks, dangerous chemicals, and a variety of other risk factors.
A workers’ compensation insurance policy can help cover these losses and provide some relief to employees who have been injured or suffered a medical condition on the job. Sometimes, it can also pay partial wage replacement if an employee cannot work.
In addition, restaurants can save on their premiums by adequately classifying their employees. It helps the insurance company assess their risk for workers’ comp claims.
