Insurance is necessary for the protection of any business, especially restaurants. Restaurants, due to the number of hazardous situations that can occur to the business or a customer, require multiple types of insurance. Here are the top six types of insurance you need for your restaurant
1. Property Insurance
Property insurance is important in protecting your restaurant in many instances of damage to physical property or vandalism. Many insurers only cover certain types of damage, so pay close attention when choosing your insurance. Insurers may offer different insurance plans when it comes to natural disasters such as storms and floods.
2. Loss of Business Insurance
The restaurant business can be very unpredictable, so having loss of business insurance can cover many of the finances lost in the event your restaurant should have to shut down. Loss of business insurance, however, can be costly. Depending on the severity of the loss of finances, you may find yourself breaking even.
3. Food Contamination Insurance
Food contamination insurance is important for you to have in the event that there is a power outage due to electrical errors or a storm. This insurance will cover the cost of the spoiled foods in the refrigerators and freezers.
4. Workers Compensation Insurance
Most states require that a restaurant carry some type of workers compensation plan. As an employee in a restaurant you may be exposed to potentially hazardous situations, such as close proximity to fire and chemicals. In the event that a worker incurs a work-related injury, workers compensation insurance will be able to protect your business.
5. General Liability
General liability covers the large majority if situations where a customer would want to sue the restaurant. There are several scenarios where a customer could fall into harms way, it is important to be prepared.
6. Liquor Liability
If your restaurant has a liquor license you should have liquor liability to protect your business in the event that a customer consumes too much alcohol and injures himself or others.