Restaurant business insurance is so specific that you could be leaving yourself liable for thousands of dollars in damage if you do not work with an agent who specializes in insuring restaurants. Many owners are either too busy or unfamiliar with insurance they do not know how important this is.
Recently, we handled a case where a restaurant owner got his business insurance through a family friend. In an effort to save the owner money, the agent dropped a few vital coverages during the renewal. There were two incidents when the owner had to contact the insurance company because of a loss. Imagine the owner’s surprise when he found out that he was not covered and had to shell out over $100,000!
Restaurant Business Insurance: Most important, work with a specialist!
We cannot stress enough how important it is to work with a qualified agent who is experienced in working with restaurants. Call (949) 756-4100 and ask for our restaurant business insurance specialist.
In the meantime, here is some helpful information about restaurant business insurance. This is by no means a complete list and there are many exceptions and nuances to the brief descriptions supplied below. Your restaurant business insurance specialist can help advise what limits you need and which coverages apply to your restaurant specifically.
Insurance Specific to Restaurants and Food
Several types of insurance coverages are made specifically for the food industry. Depending on the type of restaurant you have and the volume you sell, your insurance agent will help you get the appropriate coverage:
- Food Product Liability – Protects you in the event that your food causes injury to the user.
- Food Spoilage Coverage – Covers you in the event that your refrigeration equipment breaks down and you lose your food as a result.
- Food Contamination Coverage – Covers you in the event of food poisoning or communicable diseases transmitted by an employee.
- Food Product Recall Coverage – If you sell food products and they are recalled, your expenses are covered.
- Equipment Breakdown Coverage – If your pizza oven (for example) goes on the fritz and you lose business as a result, this is how you are covered for your loss. Similar to:
- Business Interruption Coverage
Only a qualified agent can help you determine exactly which policies you need to help protect your business.
Insurance for the Restaurant Building
Like other business insurance policies, you will need insurance coverage for your property.
Workers’ Compensation Insurance
Even if you only have one employee, in California you are required to have Workers’ Compensation Insurance.
Valet Coverage – If your restaurant has a valet service, this protects the customers.
Liquor Liability – An absolute necessity if you serve alcohol.
Bailee Coverage – Protects your customers’ property.
Cyber Crime Insurance – If your restaurant offers online ordering with credit card transactions or payment by smartphone, you would need this.
Crime Insurance – To protect yourself from employee theft, among others.
Non-owned & Hired Auto – Do you have delivery drivers? If so this coverage will protect your business in the event they cause an accident on the job.
Employment Liability Practices Insurance (EPLI)
In California, about 60% of restaurant owners face employee lawsuits. California has complicated wage and hour laws and the hours that restaurant employees work is unpredictable and hard to control. Restaurant owners need this coverage to protect themselves financially in the event of a lawsuit.
Only Work with a Restaurant Business Insurance Specialist
You want someone who thoroughly understands the restaurant business. Make sure you only work with an agent who has years of experience in your industry.
Invensure specializes restaurant business insurance for Southern California. Call us if you have any questions or if you would like a no-obligation quote.
Call (800) 331-4700