All restaurants in Georgia need insurance coverage, from small mom-and-pop operations to larger, national chains. Any business that serves food has unique risks and requires a customized insurance plan. So what type of restaurant insurance does your business need? Keep reading for an overview of essential insurance policies that will keep you covered.
Who Needs Restaurant Insurance?
Coffee shops, cafeterias, fast food restaurants, full service restaurants, ice cream shops, caterers, and basically anyone serving food requires some type of restaurant insurance.
Food trucks will also require at least a general liability insurance in addition to commercial auto.
Other types of food industry businesses that will need auto insurance include caterers as well as restaurants that deliver food or offer valet parking.
What Are the Different Types of Restaurant Insurance?
The below is not an exhaustive list, but an overview of the main types of restaurant insurance your business may be required to have in Georgia, or that owners should consider. As an independent insurance broker, we are perfectly positioned to provide you with a customized package of insurance that best suits your business needs. Contact us to discuss your options.
General Liability Insurance
General liability insurance protects the restaurant in the event that someone is injured on your property. This covers the business in the event a customer is harmed from enduring a fall on your property or is burned by hot food. It covers lawsuits, injury damages, property damage, and even data loss, if say coffee is spilled on a hard drive or server.
If you are renting the building, the building owner may already have property insurance, although you are still on the hook for the contents of the property. Property insurance covers damage to elements like kitchen equipment or furniture.
This is an instance where you will want to diligently read the fine print and be aware of what is included and excluded. Does the policy cover floods, or fires? If fires, are you required to have certain systems in place, such as fire extinguishers? You may need to prove you are continuously maintaining this equipment to ensure coverage.
General liability insurance does not cover your employees being harmed, but workers’ compensation does. Workers’ comp covers employees from the expense of work-related accidents, illnesses, or lost wages. If your employee falls off a ladder or has an AC unit fall on them, you are covered. Any Georgia business that has three or more employees, including part-time workers, is required to have workers’ comp.
Food Contamination Insurance
Food contamination insurance protects you in the event of a loss relating to contaminated or spoiled food, say if there’s a power outage from increased electricity consumption during a Georgia heat wave. It can also cover other food-related issues such as contaminated food supplies, and mishandled or improperly stored food causing illness. Coverage can include equipment cleaning costs, employee medical testing, loss of income, even advertising to help your business restore its reputation.
Commercial Crime Insurance
Commercial crime insurance protects the restaurant in the event money, data, or properties are stolen. This can include employee dishonesty, computer fraud, ransom, extortion, or money laundering.
Cyber Liability Insurance
Cyber liability insurance covers economic damages that come about through a failure of network security or privacy controls, and can help cover ransomware attacks, network outages, and employee or customer lawsuits associated with data breaches of your POS system.
Restaurant owners may also need to consider…
Liquor Liability Insurance
Not surprisingly, serving alcohol ups the risk for a business and consequently the need for restaurant insurance coverage. Liquor liability insurance protects you in the event your customer gets overserved and causes a drunk driving accident, or otherwise commits a crime, causes harm, or damages property. Microbrewery insurance may also be applicable.
Automobile Liability Insurance
Restaurants that make deliveries, offer catering services, or provide valet services, need automobile liability insurance. This protects you from the medical, legal, and repair costs that could arise from a car accident.
If you have valet services, you may also consider garagekeepers insurance, which protects you when you are keeping a customer’s car on your property in the case of fire, theft, or vandalism.
Specialty insurance may be needed for your restaurant if you have valuable items on the property that clearly need coverage, but may not be covered by property insurance. For example, if your restaurant centers around a certain theme that results in your having expensive sports memorabilia or fine art on your property, you will need those items protected.
How Do You Choose the Right Coverage?
When taking a look at your specific restaurant, consider the operations and risks involved with the various aspects of the business.
As mentioned above, reading the fine print is imperative when it comes to insuring your business. Know what you are getting into and what is covered, what is not, and what is required of you (like fire extinguisher maintenance) – this will help lead you in the right direction for coverage.
When choosing insurance for your restaurant, you’ll of course be looking at the price and how much it’s going to cost you. But know that you don’t necessarily want to go for the cheapest coverage, nor will the most expensive policies automatically dictate they’re the best choice for your restaurant insurance needs.
Contact Us to Get Started on Covering Your Restaurant Today
Now that you have an idea of what you’re getting into with restaurant insurance, if you own a restaurant in Georgia, contact us at R&R Insurance today to discuss a personalized plan for your unique business.
Although we specialize in a wide variety of business insurance, restaurant insurance in GA is one of our top specialties. As an independent broker, we have access to and relationships with a multitude of carriers, and can best help customize a plan that works for you and your business.