6 Types of Insurance You Need as a Restaurant Owner

    restaurant business insuranceInsurance may not be the most exciting topic for most people, but it’s one that you can’t afford to overlook. As a restaurant owner, you have probably already poured tons of money and time into the success of your business. The right insurance will protect your investment from a number of unforeseen problems. And depending on your location, certain kinds of insurance are required by law.

    6 Types of Restaurant Insurance

    Finding the right insurance can feel overwhelming and it can be hard to know what kind of coverage you really need. Let’s look at six types of insurance you should consider as a restaurant owner:

    It’s no secret that restaurants are busy places and all it takes is one misplaced “Wet floor” sign for someone to fall and injure themselves. General liability insurance will cover medical and legal costs for any accidents that result in customer injuries.

    The court costs from just one lawsuit could be enough to put you out of business. General liability insurance will protect you from any claims of injury or negligence.

    Any sort of damage to your restaurant could put you out of business for quite a while. Property insurance will protect your restaurant from vandalism, a fire, and storm damage. Specific coverage will vary so you should work with your insurance broker to tailor your coverage to your specific location.

    Did you know that 128,000 people are hospitalized from foodborne illnesses every year? Food poisoning is no joke and it should be a serious concern for all restaurant owners.

    There is no way to entirely prevent food poisoning but as a restaurant owner, you are responsible for the food you serve. Product liability coverage will protect you from any lawsuits directly relating to the food served at your restaurant.

    This type of insurance will cover any medical or legal expenses if one of your employees is hurt at work. 35 percent of employers are more concerned about workplace safety than any other risk. And unless you live in the state of Texas, workers’ compensation is required by law.

    If one of your employees is hurt at work their medical and rehabilitation expenses will be covered. They will also be reimbursed for some lost wages due to missed work. And any resulting legal expenses would be completely covered by your insurance.

    Commercial auto insurance is necessary for restaurants that make any types of deliveries. Remember your personal auto insurance does not cover your business at all and, you may be stuck paying lawyer fees and damages out of pocket. Commercial auto will cover the liability of the entity if you or one of your employees is involved in an accident.

    It is always a good idea to have commercial umbrella insurance to provide additional liability limits in your existing policies. It is basically excess liability insurance that will kick in when coverage from your other policies run out. It could protect your business from an otherwise financially devastating lawsuit.

    At this point, you may be wondering how much you’re going to have to pay to get the coverage you need. And the answer is… it depends. Insurance costs vary greatly depending on your location, the number of employees you have, the type of restaurant you run, and many other factors.

    Insurance isn’t always cheap but consider all that you have to lose if a fire burns down your restaurant. You already put in the hard work to make your restaurant the success that it is. Now you need to make sure you have the right insurance policies in place to protect your assets.

    Working with an experienced insurance broker is probably the best place for you to start. They will understand the local and state laws in regards to insurance. They can also evaluate your business needs, find out what your budget is, and make recommendations in terms of coverage.

    charong chow embroker picAbout the Author:
    Charong Chow is Head of Content at
    Embroker, which empowers businesses to take the risks that will help them grow. Embroker provides technology that takes the pain out of insurance, offers top-tier service from the best brokers in the game, and partners with the nation’s leading carriers to surface policies tailored to your company.


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