Being a business owner can be exhilarating but understanding potential risks can sometimes be stressful and overwhelming. Potential hazards could include injury, natural disasters, and a variety of other unforeseen incidents that might affect day-to-day operations. Just one lawsuit can put a company in dire financial straits. If you currently own a food service establishment or if your future includes being a business owner you should be aware of some things you may have to overcome. The first thing to consider is getting the proper coverage for your new investment. Restaurants, gaming bars, coffee shops, fast-food franchises all need to be protected with proper coverage.
Establishing yourself with the right insurance company is crucial for the success of your business. Family Insurance, LLC is licensed in Nevada, Oregon, and Minnesota. We will help walk you through your options and protect your business against any losses associated with property damage, workers comp, and even natural disasters.
Types of Insurance Your Restaurant Needs to Succeed
1) Business Income
Business income insurance is important for all types of restaurants, from caterers and coffee shops to full-service restaurants and gaming bars. This type of insurance can help you recoup lost income if your business is forced to close due to a covered event, like a fire or severe weather. It is important to have this coverage in place so you can keep your doors open to serve your customers.
2) Commercial Property
Any restaurant, whether it’s a caterer, coffee shop, full-service restaurant, or gaming bar, needs commercial property insurance. This type of insurance protects your business in the event that your property is damaged or destroyed. It can also help cover the cost of business interruption, which can occur if your restaurant is forced to close due to damage from a covered event.
3) General Liability
General liability insurance is one of the most important types of insurance for restaurants. It protects your business from third-party claims of bodily injury or property damage. If a customer slips and falls in your restaurant, or if someone gets food poisoning from your catering business, general liability will cover the resulting medical bills and legal fees.
4) Worker’s Compensation
Every restaurant needs worker’s compensation insurance, no matter what type of eatery it is. This will protect you in the event that an employee is injured on the job. If you have caterers, coffee shops, full service restaurants, or gaming bars, you may be required to have this type of insurance.
5) Commercial Auto
Does your staff use company vehicles? With food delivery services becoming more readily available for customers this might be a vertical you want to explore. In the event of an accident, this coverage will ensure your out-of-pocket costs are as low as possible.
6) Liquor liability
Liquor liability is a must for any restaurant that serves alcohol, whether it’s a caterer, coffee shop, full-service restaurant, or gaming bar. This type of insurance protects your business from claims arising from serving alcohol, like slip and fall accidents or fights. It’s important to have because it can help cover the costs of damages and injuries that occur because of serving liquor.
Conclusion
In conclusion, it is important for all food service establishments and restaurants to have both commercial, property, and general liability insurance. Property insurance covers the building, furniture, fixtures, equipment, and leasehold improvements. Liability insurance will cover the restaurant owner in the event a guest is injured on their premises or sustains property damage. Lastly, don’t forget that all types of businesses are not required to have workers’ compensation coverage; however, it is advisable as an employer if you want to avoid paying hefty fines if one of your employees sustains an injury on the job.
If you would like to explore your options with a seasoned insurance agent reach out to us at MN (952) 693-0973, NV (702) 764-9951, OR (541) 590-7787.
