Operating a restaurant comes with different risks because of food handling, safety, and liquor sales that require insurance. When browsing what insurance is right for your business, you can work with an insurance agent to choose sufficient coverage that protects you from losses or lawsuits. Here are four benefits of having restaurant insurance:
Protects Against Liability Claims
In busy restaurants, wet floors and crowded areas may cause slips and falls, which may lead to lawsuits. Liability insurance can help cover medical expenses and legal costs in case of claims. If your restaurant serves alcohol, liquor liability coverage protects your business from being responsible for accidents and damages caused by intoxicated patrons, or If multiple customers report illness after dining at your restaurant, insurance can pay for medical costs and potentially lost wages. If your case goes to court, the coverage pays for court fees and settlements.
Covers Property Damage
Fires or natural disasters can damage restaurant equipment like stoves, ovens, and refrigerators. Property insurance helps cover the cost of repairing or replacing these items, allowing your restaurant to resume operations. In areas prone to extreme weather, like hurricanes, it may ruin the building’s structure. Having restaurant insurance may cover repairs to walls, roofing, windows, and flooring. If someone steals or vandalizes your furniture or equipment, property insurance also reimburses you so you can replace these items. Some insurance providers may offer coverage for certain security upgrades, such as better locks, lighting, and surveillance systems, to help prevent future incidents.
Shields Employees
If employees get injured or become sick due to work work, workers’ compensation insurance provides financial compensation. This type of coverage pays for medical care, including visits to urgent care or the emergency room, and is required for businesses to have. This insurance may cover injuries such as severe cuts and fractures that require surgery, physical therapy, or rehabilitation. If an employee cannot work due to an injury, workers’ compensation provides partial wage replacement. This amount allows staff to pay for their living expenses while they recover and wait to resume work.
Protects Business Income
If an event like a fire or severe weather forces you to close your restaurant, business interruption insurance compensates you for lost income. When calculating coverage, an insurance company checks the restaurant’s previous earnings to help it stay financially steady. This coverage may be used to pay for utility bills, even when your business is closed temporarily.
Since many restaurants lease their spaces, this payment can be used to cover rent and prevent conflicts with property owners. This reimbursement can be used to pay employees wages so that they return once your restaurant reopens. Business interruption insurance can provide funds to cover loans to prevent them from accumulating interest during this period.
Invest in Restaurant Insurance
If you own a restaurant, you can purchase property insurance, general liability, and worker’s compensation to protect your business. As your business grows, you may adjust the policies to meet these new changes, shield your income, and further protect your assets. To learn more about different types of restaurant insurance, call an experienced agency today.
