The fast pace of running a restaurant can be exciting. But while all this activity makes the job fun, it also introduces a wide range of unique risks that other businesses don’t always face. For this reason, restaurant owners often purchase supplemental commercial insurance policies to minimize the risk of financial loss. Learn more about what types of coverage you should consider with this useful guide.

7 Types of Insurance Restaurants Should Have

1. Spoiled Food

Food contamination is a serious problem because it can make guests sick.
Plus, if food goes bad, you’ll be required to throw out a considerable amount of inventory. With food contamination insurance, you can cover the cost of any items that were spoiled.

2. Property

Whether your business is knocked out by a severe storm or a kitchen fire, property insurance will provide you with coverage to help pay for the repairs. This coverage may also include protection to cover lost revenue while repairs are made.

3. Auto

If your restaurant relies on delivery vans or offers outbound catering services, make sure that all vehicles used for company purposes are covered. If any driver is involved in an accident, your restaurant policy can help cover the damages along with any other medical and legal fees.

4. General Liability

General liability is a standard form of coverage for any type of business. Essentially, this coverage protects you against lawsuits filed by injured guests. Even if an accident seems insignificant at the time, a patron may still seek compensation for any related lost wages.

5. Liquor Liability

Similar to general liability, liquor liability is designed to pay for medical costs related to injuries that patrons experience at your establishment. However, this form of coverage is unique in that it specifically covers injuries that occur when an intoxicated individual has been served alcohol at the restaurant.  

6. Worker’s Compensation

If any of your employees are hurt on the job, they can submit a worker’s compensation claim to help make up for lost wages. Worker’s compensation insurance helps the business cover these costs. Having this protection also prevents employees from suing the restaurant for injury damages. It's also required in Alabama for most businesses with five or more employees.

7. Sewage Backup

The water damage terms in most commercial policies don’t apply to sewage backups. This oversight could affect your bottom line if plumbing issues arise. Sewage backup insurance is designed to cover these emergencies and help the establishment stay afloat financially while repairs are made.

 

If you’re busy tending to all the needs of restaurant management, it helps to have the support of Absolute Insurance Agency in Foley, AL. This team will create a business policy that’s tailored to your company’s needs. To learn about this agency’s products and plans, visit the website. For a free quote on coverage, call (251) 942-6837.