Author: Emilie Hagopian

KEY TAKEAWAYS:

Here are 15 crucial kinds of restaurant insurance:

1. Restaurant Liability Insurance
2. Liquor Liability Insurance
3. Property Insurance
4. Business Interruption Insurance
5. Foodborne Illness Coverage
6. Workers’ Compensation Insurance
7. Valet Parking/Garagekeeper Liability
8. Company Auto Insurance
9. Employee Benefit Plans
10. Employment Practices Liability
11. Crime/Fidelity Policies
12. Electronic Instrument Policies
13. Bonds
14. Cyber Insurance
15. Hired and Non-Owned Auto Coverage

Restaurant Insurance: It Matters More than You Think

Running a restaurant is no piece of cake. From managing staff to ensuring quality ingredients, there’s a lot on a restaurant owner’s plate. But one thing that should never be overlooked is restaurant insurance. 

A customer slips on a wet floor, a kitchen fire breaks out, a disgruntled employee files a lawsuit — without proper coverage, these scenarios could burn a massive hole in your pocket. From liability coverage for slip-ups to property insurance for kitchen calamities, restaurant insurance is your safety net in the unpredictable world of food service. So, let’s talk about some must-have policies for restaurants. 

The Top 15 Types of Restaurant Insurance 

1). Restaurant Liability Insurance: Covering the Unexpected

Accidents happen, and when they do, restaurant liability insurance has your back. Whether a customer slips on a wet floor or gets sick from food poisoning, this coverage protects your business from costly lawsuits and medical expenses.

2). Liquor Liability Insurance: Serving Responsibly

If your restaurant serves alcohol, liquor liability insurance is a must. It shields you from liability in case a patron causes harm to themselves or others after consuming alcohol on your premises.

3). Property Insurance: Safeguarding Your Assets

Your restaurant’s physical assets, like the building, equipment, and inventory, are valuable investments. Property insurance ensures you’re covered if they’re damaged or destroyed by fire, theft, or other covered perils.

4). Business Interruption Insurance: Keeping Your Business Afloat

When unexpected events, like natural disasters or equipment breakdowns, force your restaurant to temporarily close its doors, business interruption insurance steps in to cover lost income and ongoing expenses.

5). Foodborne Illness Coverage: Maintaining Your Reputation

Food safety is paramount in the restaurant industry. Foodborne illness coverage protects your business if a customer falls ill due to contaminated food, helping you manage the fallout and preserve your reputation.

6). Workers’ Compensation Insurance: Supporting Your Crew

Your employees are the backbone of your restaurant. Workers’ compensation insurance provides financial protection for your staff in case they’re injured or become ill on the job, covering medical expenses and lost wages.

7). Valet Parking/Garagekeeper Liability: Parking with Peace of Mind

If your restaurant offers valet parking services, valet parking/garagekeeper liability insurance shields you from liability if a customer’s vehicle is damaged or stolen while in your care.

8). Company Auto Insurance: Driving Safely

If your restaurant owns vehicles for deliveries or catering services, company auto insurance provides coverage in case of accidents or damage to your vehicles.

9). Employee Benefit Plans: Caring for Your Team

Offering employee benefit plans, like health insurance and retirement benefits, demonstrates your commitment to your team’s well-being and helps attract and retain top talent.

10). Employment Practices Liability: Navigating HR Challenges

Employment practices liability insurance protects your restaurant from claims of wrongful termination, discrimination, harassment, or other employment-related issues.

11). Crime/Fidelity Policies: Guarding Against Theft

Unfortunately, theft can occur in any business. Crime/fidelity policies provide coverage for losses resulting from employee dishonesty, theft, or fraud.

12). Electronic Instrument Policies: Protecting Your Tech

If your restaurant relies on electronic equipment like POS systems or kitchen appliances, electronic instrument policies cover repair or replacement costs in case of damage or breakdown.

13). Bonds: Building Trust

Surety bonds, like performance bonds or license and permit bonds, provide assurance to customers and regulatory agencies that your restaurant will fulfill its obligations and comply with industry standards.

14). Hired and Non-Owned Auto Coverage

Hired and non-owned auto coverage extends your auto liability coverage to vehicles that aren’t owned by your business, but are used for your business tasks. This type of coverage can be especially helpful if you deliver food in any capacity.

It includes two different types of coverage:

• Hired coverage: Offers coverage for when you or your employees drive a rented, leased or borrowed vehicle for the business.
• Non-owned auto coverage: Offers coverage for employees who use their own vehicles for business. It provides extra coverage over the employee’s personal auto coverage for bodily injury and property damage liability.

15). Cyber Insurance

Restaurants now heavily rely on digital platforms for order-placing and payments, embracing
QR code menus and providing Wi-Fi access to customers. Although necessary for survival, these
digital adoptions have left many restaurants more susceptible to cyber threats. Cyber insurance offers coverage in the event that your restaurant suffers a costly data breach or cyber attack.

Get a Quote on Restaurant Insurance Today

Don’t leave your restaurant unprotected. Contact Avalue Insurance to learn more about restaurant insurance and ensure your business is properly protected. From liability coverage to employee benefits, we’ve got you covered. Get in touch with us today to start comparing quotes!