What You Should Know About Restaurant Insurance

Table setting in a restaurant

According to the U.S. Bureau Labor of Statistics, thousands of food service employees are injured every year. Restaurant guests can be injured while visiting your establishment as well. This is one of many situations that can go awry in the restaurant industry.

Restaurant insurance is a legal matter and some states have certain requirements. It also can provide a sense of security for restaurant owners.

Having this sense of security could make a world of difference. Keep on reading to learn more about restaurant insurance policies.

What Is Restaurant Insurance?

In essence, restaurant insurance could help protect restaurant owners if a lawsuit arises. Such lawsuits can relate to:

  • An accident or situation that happened at their restaurant
  • A circumstance that impacted a customer or employee

These policies could cover up to a certain amount of monetary compensation.

Restaurant insurance is not one specific policy. There are key insurance-based services a restaurant owner should consider.

Recommended policies include general liability and Workers' Compensation. Business property insurance and cyber insurance are also recommended and can be found in our Business Owners Policy.

Insurance Policies Explained

There are many policies that fall under restaurant insurance. Below you can learn about each policy type and what it could cover:

Business Owners Policy

A Business Owners Policy is a comprehensive package of multiple coverages. It provides a wide scope of protection for owners. Our Business Owners Policy includes general liability, property insurance, and cyber risk insurance.

Business Property Insurance

Business Property Insurance is a popular restaurant insurance policy. Business property insurance could protect the tangible assets of the restaurant. Such assets include furnishings, business equipment, and inventory. Protection occurs whether the restaurant owns or rents these assets.

This policy helps to protect items if they break, need a replacement, or get stolen. This policy could be helpful if a restaurant has invested in expensive physical assets or has collectible furniture.

Cyber Insurance

Cyber Insurance could help protect restaurant owners from the impact of cybercrimes. Examples of cybercrimes include data breaches and security attacks. If a restaurant has an active online website, cyber insurance could be an extra layer of comfort for owners.

A restaurant can receive business from online sales and an online presence has become more prevalent in recent years. Many restaurants that have takeout or delivery options have a website for customers to order from.

Yes, even restaurant websites can get hacked. This is why such protection is important to consider. If a hacker gets into your system, the implications can be severe.

The good news is that cyber insurance could offer reliable protection from cyber-attacks for restaurant owners. It can cover notification costs, legal expenses, and professional investigation costs.

General Liability Insurance

General liability insurance helps to protect a restaurant if an accident or death occurs. If such an injury takes place, a customer can sue for damages and/or expenses related to the accident.

The restaurant owner may be liable for these situations. Accident-related costs can be astronomical. With insurance, restaurant owners most likely will not have to pay significant fees out of pocket.

General liability insurance does not cover employee accidents or injuries. Thus, a restaurant owner should consider buying a Workers' Compensation policy.

Workers' Compensation

One can think of Workers' Compensation or Workers' Comp as an equal to a general liability policy. Workers' Comp is typically not included in a Business Owners Policy and is a separate type of insurance. Workers' Comp helps to cover employee accidents, injuries, or even wrongful death.

Workers' Comp can cover expenses related to the workplace accident or injury. Examples include medical costs, damages, and wage compensation. Wage compensation happens when an individual cannot work for a while due to an injury.

A Workers' Comp insurance policy has two central benefits for restaurant owners. It could cover expenses related to employee accidents and helps to provide protection.

Once an employee receives compensation, he or she usually cannot sue the restaurant. From the viewpoint of owners, this could be a very attractive component of the policy.

What Types of Businesses Should Consider Restaurant Insurance?

There are many businesses that should consider a restaurant insurance package. Examples include casual restaurants, fine dining restaurants, coffee shops, and delis. More examples include bagel shops, candy stores, pizza shops, and fast-food restaurants.

These are just a few types of businesses that have acquired restaurant insurance. As you can see, restaurant insurance is important to a wide range of food service businesses.

Learn More About Restaurant Insurance Policies Today

Injuries and accidents can happen in restaurants. Large lawsuits can sometimes follow. With the policies highlighted above, restaurant owners can be protected.

Without protection, owners could find themselves paying massive costs out of pocket. These consequences could devastate a business. With the Business Owners Policy as well as Workers' Comp, restaurant owners may have peace of mind knowing that their business could be protected.

To learn more about the insurance policies we offer and to receive a free quote, we encourage you to contact us today.


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