Getting started in the restaurant business is exciting, and possibly a little bit scary. Making sure that you are thoroughly covered in the event of unforeseen disaster will not only safeguard your future, it will give you peace of mind in the present.
The Business Owner’s Policy
All businesses, no matter the type, need to be covered by a Business Owner’s Policy, which is a combination of three essential types of business insurance: Property, Liability, and Loss of Income.
Property Insurance will protect you against damage to restaurant property. If a leaky pipe rots the flooring by the dishwasher, or a freak hail storm tears up your roof, you will be able to afford the necessary repairs and replacements.
General Liability Insurance
General Liability Insurance covers you in the case of a customer claiming bodily injury or damage to their property due to their interaction with your restaurant, e.g. a broken leg from a slip-and-fall accident, or a full-length fur that gets damaged in the coat room. These kinds of claims can range from less than a hundred dollars to multi-millions, so you’ll want to be prepared.
Loss of Income Insurance
Loss of Income Insurance protects you so that a disaster such as flood or fire won’t put you out of business. A big enough property insurance policy may allow you to rebuild your restaurant from the ground up, but it won’t make up for the loss of income you’ll experience during construction.
Food and Drink Policies
Insurance coverage related to food and drink protects the heart of what gives your restaurant meaning.
Food Contamination Insurance
Food Contamination Insurance will cover your costs if you have to replace all your produce due to an e-coli recall, or if all the meat in your refrigerator goes bad after a power outage in the heat of August.
Liquor Liability Insurance
Liquor Liability Insurance protects you in case a customer who gets drunk at your establishment causes accident or injury due to intoxication after they leave.
Employee Theft Insurance
Employee Theft Insurance covers all forms of employee dishonesty, from inventory stolen from you, to a credit card number stolen from a customer.
Worker’s Compensation Insurance
Worker’s Compensation Insurance is required in Georgia for any business with three or more employees, and that’s a really good thing. Anyone could get injured on the job—even you—and this coverage will make sure that all those unexpected medical and rehabilitation bills are paid for.
Employment Practices Liability Insurance
Employment Practices Liability Insurance protects you in case a former employee sues you for improper termination, discrimination, or harassment. Considering the high turnover rate in the restaurant industry, this is smart coverage to have.
Commercial Auto Insurance
This one may or may not apply to you, but if you have any company vehicles, or if your restaurant delivers food to customers, you’ll need Commercial Auto Insurance.
R & R Insurance Group can help you find the right combination and level of insurance coverage for your restaurant, making sure your dream stays a reality for you and your hungry customers.
If you have any questions regarding your current policies, please feel free to reach out to me.
Thanks for reading,
Donnan G. Oyler, President
Additional Articles of Interest
Commercial Real Estate Protection with R&R Insurance Group