Business Insurance for Restaurants: What Should You Have?

Many know that running a restaurant involves ordering food, tracking inventory, keeping the kitchen clean and making sure customers are happy. Yet, having the correct insurance in place is also vital to operate a restaurant. Like many other businesses, restaurants have a high risk of lawsuits, property damage and loss of income.
As many entrepreneurs know, starting up a restaurant requires a large investment and intense supervision from the get-go. However, over time, smooth operations and a steady customer base bring in a greater amount of income. You, as a business owner, devote a significant portion of your time to making sure the restaurant remains profitable within its budget.
Additionally, restaurant owners may need to take out a particular policy by law or the conditions of their loan or lease. With these points in mind, which types of insurance does a restaurant need?

• Workers’ Compensation: If your company employs multiple individuals, this policy is required to cover and compensate your workers for any on-the-job injuries and illnesses. Almost all states require all kinds of businesses to have workers’ compensation insurance.
• Unemployment: Like workers’ compensation, unemployment insurance is required by most states.
• Commercial Vehicle Insurance: Do you deliver food or offer event catering services? If your restaurant uses a vehicle in any capacity, a personal auto insurance policy doesn’t offer enough coverage. Instead, should an accident or property damage happen, you can be ready with a commercial policy.
• Business Owner’s Policy: Encompassing general liability, business income and property damage, this policy has you covered for issues concerning operations and premises liability, damage to equipment and your facility and negligence. Further, for restaurants, it has you protected in the event of a fire. Each year, cooking accidents and heating problems result in fires that damage thousands of restaurants.
• Product or Professional Liability: Also known as errors and omissions insurance, this type of policy has you covered when customers claim they picked up a food borne illness at your restaurant.
• Equipment Insurance: When you want coverage that extends beyond your BOP, a separate equipment policy assists with repairing equipment in the event of a breakdown, compensating you for lost income and helping you keep your restaurant running.
• Liquor Liability: Does your restaurant serve alcoholic beverages? If so, realize you can be sued over a drunk patron’s actions. To be prepared for this risk, a liquor liability policy assists with legal costs so your business stays afloat.

Does your Connecticut restaurant have all essential forms of business insurance? To expand or change your policy, give us a call at 203.439.2815.