Restaurant Insurance to fit your budget and needs
Low Cost Restaurant Insurance in Decatur, GA
Who needs Restaurant Insurance?
What Insurance Policies Do Restaurants Need?
- General Liability Insurance, which pays for your defense when a third party (e.g., a patron) sues
- over bodily injuries and property damage. Some policies also cover advertising injuries, such as
- lawsuits over copyright infringements.
- Property Insurance, which pays to replace or repair damaged equipment, inventory, or restaurant space.
- Umbrella Insurance, which supplements coverage when certain underlying liability policies have reached their limits.
- Workers’ Compensation Insurance, which reimburses employees who are injured on the job.
- Commercial Auto Insurance to protect their business-owned vehicles.
- Inland Marine Insurance to cover their equipment in transit.
- Liquor Liability Insurance to pay for legal expenses when an over-served patron wreaks havoc on the community and the client is held accountable.
The Basic Types of Business Insurance
How Much is Restaurant Insurance Going to Cost Me?
Your final insurance cost will be determined by a few factors. These can include:
- Types of insurance. The more types of policies you buy, the more your premiums will cost, though in some cases buying multiple policies from one carrier will get you a discount.
- The amount of coverage you buy. Most small businesses need around $1 million of general liability insurance, although you may opt for more depending on how valuable your inventory or equipment is.
- The size of your restaurant. The larger the store space, the higher your premiums, particularly for property insurance.
- Also affecting your cost is how many employees you have, since the larger your staff, the more you’ll need to pay in workers’ compensation and potentially other types of insurance, too.
- Your deductible. The higher your deductible, the lower your monthly premiums. Raising your deductible is an easy way to reduce your monthly insurance costs, but don’t raise it so high that the amount you save each month is wiped out by the amount you have to pay out of pocket whenever you make a claim.
Additional Business Insurance Policies
There are several more types of business insurance policies, but many restaurants don’t require all of them to safely operate. It’s important to review your business’s specific risks to determine which policies you should purchase.
Below are 10 types of business insurance worth considering for your restaurant:
- Product liability insurance covers you for any lawsuits or medical issues caused by the items that you sell. In the restaurant industry, this type of insurance is mainly used to protect a business if a customer gets food poisoning
- Workers’ compensation is a must if you have employees. It pays for your workers’ medical costs if they get injured during work and for any damage to their property during their work. It’s illegal to employ staff without workers’ comp in most states, although some do not enforce this policy if you have fewer than three to five employees. Check your local legislature to ensure you’re in compliance./li>
- Equipment insurance, also called mechanical breakdown insurance, covers large items of equipment. If you’re running a restaurant, you’ll need this to protect your refrigerated cabinets, ovens, mixers and other large items of equipment in case they stop working, are damaged by a careless employee or are stolen. Equipment insurance goes beyond warranties to include theft or deliberate damage by a third party. If you can’t run the business without your freezers, you can’t risk operating without equipment insurance.
- Auto insurance or commercial vehicle insurance covers company vehicles like delivery vans and private cars that are used for work purposes. Auto insurance provides replacements if your vehicles are written off and pays for damage done to or by vehicles during company time.
- Spoilage insurance is a good idea for restaurants, catering companies and other food retailers. It covers you if all your food spoils because a storm downs the power lines, or if food reaches you spoiled but the wholesale company won’t give you a refund.
- Business interruption insurance is recommended for most brick-and-mortar businesses. It pays your bills if your store has to close for any reasons listed in the policy. For example, if there’s a fire in the food court where your fast food restaurant is and the whole area is shut down for a few weeks, business interruption insurance pays your ongoing bills until your income starts up again.
- Specific disaster coverage depends on where your business is located. If you’re in particular danger from disasters like hurricanes, tornadoes or earthquakes which are not included in your standard business insurance policies, specific disaster insurance makes sense. It will pay to rebuild or relocate your store if you’re hit by a covered peril.
- Theft insurance pays for anything that’s lost from your business inventory due to theft. You’ll have to decide how great the risk of theft is and whether the items you’d lose are valuable enough to justify theft insurance premiums.
- Liquor liability insurance is only for restaurants or stores that have a liquor license. It protects you from being sued if a customer injures someone else or themselves after having too much to drink in your establishment. In most states, this insurance is mandatory for anywhere with a liquor license.
- Cyber liability insurance can be relevant for any type of business, but especially for those that rely on data. It covers you for the loss of data through theft or damage, such as the loss of customers’ credit card information.