If you want to open a restaurant, you will want to make sure you have all of the right insurance coverage in place. The right business insurance coverage is necessary to protect the restaurant you have worked so hard to build.
Type #1: Food Spoilage
When you are running a restaurant, you will have a constant supply of fresh and frozen food on hand to serve your customers. Losing a large amount of inventory due to an issue such as a power outage or a broken freezer can be devastating financially, which is where food spoilage insurance comes into play. Food spoilage insurance will cover the cost of replacing all the spoiled food.
Food spoilage insurance also provides you with protection if a customer eats spoiled food, which is a little-known fringe benefit of this type of insurance coverage.
Type #2: Liquor Liability
If your restaurant serves alcohol of any kind, you need to carry a liquor liability insurance policy. In some states, you are required to carry liquor liability if you have a liquor license; however, that isn't the case in every state. Regardless, it is smart to carry this type of insurance. If a patron drinks too much and then harms someone else after drinking at your establishment, your insurance will cover the damage.
Type #3: Commercial Vehicle Insurance
Many restaurants transport or deliver food. If your restaurant transports or delivers food in any capacity, to individual customers or for catering purposes, you will need to carry commercial vehicle insurance on those vehicles. That way, if the vehicle is in an accident when it is being used for business, you will be covered by your insurance.
Type #4: Liability Insurance
It is a good idea as a business owner to carry liability insurance. That way, if a customer is injured or their property is damaged while at your restaurant, and that customer decides to take legal action against you, all your legal fees will be covered. Liability insurance will also pay the medical bills of someone if they are injured on your property.
Type #5: Business Interruption
You can't predict when your business may be forced to shut down. If your business can't open due to a covered event, business interruption insurance is designed to help cover lost income and to pay for expenses you will need to incur to open again.
When it comes to running a restaurant, before you open your doors, you will want to make sure you have the right insurance coverage. As a restaurant, you are going to want to carry food spoilage and liquor liability coverage. You may also need liability insurance, business interruption insurance, and commercial vehicle insurance coverage. Talk to your business insurance agent to find out what coverage you need.