Insurance for Restaurants: An Ultimate Guide

Patrons at a restaurant

Fall accidents occur almost every single day in restaurants across the country. 

While many of these falls and accidents are minor, some could result in major settlements that reach up to tens of thousands of dollars. These types of incidents can spell devastation for a family-owned restaurant or small business if they do not have the right insurance coverage. 

When was the last time you evaluated your insurance policy? Are you aware of all the different types of insurance for restaurants? If you own a restaurant or are thinking about starting one, we have created a complete guide for just about everything that your restaurant needs to know.

What Type of Restaurant Insurance Do You Need?

First things first, there are a few key types of coverage that are considered essential for restaurant owners. Here are some of the types of the insurance coverages that business owners obtain.  

Several business owners acquire general liability coverage. General liability insurance is standard coverage that protects your business against things like slip and falls, food poisoning, and other related third-party injuries that can happen to a customer or their property while in your restaurant. 

You might also want to consider business property coverage. Business property insurance could help protect your restaurant equipment and fixtures. Have your freezers or refrigerators ever stopped working during a severe storm, causing food to go bad and you to lose profits? Have rowdy customers ever broken a table or chair? 

Business property insurance coverage will not only protect your valuable kitchen equipment and restaurant furniture. It could cover business income interruption costs if your restaurant is unable to operate due to property damage.  

If you are looking to purchase both general liability and business property insurance for your restaurant one of the best places to start is with a Business Owners Policy, or a BOP. Many business owners choose a BOP because it combines both coverages in one convenient policy making it easier to manage in the event of a claim. 

Several business owners also purchase Workers’ Compensation insurance. The reason for this is most states require businesses to have Workers' Compensation coverage. It can protect your employees in case they get hurt while on the job and could help pay for things like medical bills and lost wages. This is critical for restaurants, where employees are extremely likely to get hurt while on the job.

You should look into your state's laws and regulations to determine which insurance coverages you will need to have for your restaurant. You can face stiff fines if you do not have certain insurance coverages, even if you did not know that you needed them. 

What Types of Restaurant Insurance Can You Add On?

In addition to the types of insurance coverage mentioned above, there are additional types of coverage you can get, depending on your needs. Let's run through some of them. 

If you are like most restaurants, you probably do a majority of tasks online like billing, ordering, and more. Do you have a plan in case your systems get hacked or your data is breached? What happens if you are unable to get online to carry on critical business operations?

With cyber risk insurance, you may be able to sleep easier at night knowing that your business could be protected. Cyber risk insurance protects your business against costs associated with data breaches, ransomware attacks, viruses, extortion, and more. 

A majority of restaurants do not have cyber liability insurance, leaving them vulnerable to cyber-attacks. Lucky for you, if you choose to purchase a BOP from PolicySweet®, you will not only receive general liability and property coverages, but you will also receive cyber coverage. Having this type of insurance can help protect your business in the event your business or customer's data is stolen.

Want to Get Excellent Policy Coverage for Your Restaurant?

The restaurant industry is notorious for razor-thin margins, long nights, and high turnover. As a restaurant owner, you already have a full plate of things you have to worry about. Having to make sure you have excellent restaurant insurance coverage should not be one of them.

If you are looking for restaurant insurance tips or more guidance on what exact coverage you need, reach out to us here at PolicySweet. We help small business owners like you quickly get the coverage they need so they can be protected. 

We can help you learn just about everything you need to know about insurance for restaurants, including what policies and coverages would be best suited for your business. Whether you need a Business Owners Policy or Workers' Compensation coverage, reach out today to get a free, instant insurance quote for your restaurant

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