Insurance Every Restaurant Needs

Becoming a new business owner and opening a restaurant can be a risky and stressful venture, but by having security with reliable insurance policies

Owning a restaurant can be a very rewarding and lucrative operation, when properly safeguarded from negligence and damages. A business owners policy (BOP) will provide coverage to your business, but if you offer specialized services or alcohol, you need to ensure you have a comprehensive policy. Below are different types of insurance every restaurant needs in order to operate smoothly for years to come.

Business Owners Policy (BOP)

A business owner’s policy (BOP) combines protection for all major property and liability risks in one package. Package policies are sold at a lower price, making it more cost effective than buying individual insurance policies. Most BOP packages include property insurance, business interruption insurance, and liability protection.

Property & Liability Insurance

Property and liability insurance protects your business from any losses as a result from negligence or responsibility taken by your business — this includes injuries to someone, damage to your property, loss of business inventory, reputation, or health. In most insurance policies, property insurance covers furniture, fixtures, inventory, office equipment and other supplies stored in your restaurant.

Commercial Vehicle Insurance

If your restaurant offers specialized services that requires a vehicle to operate, such as a delivery or catering service, you will need a separate insurance policy to provide the proper coverage. You will need to purchase commercial vehicle insurance because the driver’s personal auto insurance policy will not provide coverage if the vehicle is being used for work purposes.

Liquor Liability

Liquor liability insurance is needed for any business that manufactures, sells, or serves alcoholic beverages. This will protect your business from any alcohol-related damages, such as car accidents. If one of your workers over serves a customer too many alcoholic beverages and that customer gets behind the wheel, the customer can potentially hurt another driver or pedestrian coming from your restaurant, resulting in your business being held liable. The following businesses are required to have liquor liability insurance:

  • Restaurants
  • Bars
  • Caterers
  • Breweries & Wineries
  • Liquor stores
  • Certain event & performance spaces

Protecting your restaurant with liquor liability insurance is a must. You will need this in order to serve alcohol to customers in your restaurant.

Food Spoilage

As a restaurant owner, you will be working with food every day. Food spoiling due to a mechanical issue, power outage, refrigerator failure, or other equipment failures in the kitchen will result in a loss of your inventory and income. Food spoilage insurance helps to reimburse you for the cost of your lost food and beverages, up to your policy’s limits. Having food spoilage insurance can insure that your restaurant isn’t suffering from lost wages if food has to be thrown out.

Becoming a new business owner and opening a restaurant can be a risky and stressful venture, but by having security with reliable insurance policies, you won’t have to worry. Contact us at TJ Woods Insurance and talk with an expert today.