A lot can go wrong when you own a restaurant. Insurance is a crucial component in protecting the hard work you’ve put into your business and safeguarding it in the years to come. From workplace and customer injuries to property damages and business interruption, prepare for the worst with restaurant insurance that covers your business and staff against a wide range of potential losses.
Shop with a Local Independent Agency You Can Trust
Shopping for coverage does not have to be confusing or overwhelming when you use the help of an independent agent. At Harnish Insurance, we understand the challenges of your industry and your risk exposures. We compare coverage from multiple insurers to find policies that help mitigate your risks. Whether you are getting ready to open your doors for the first time or exploring coverage options for an existing restaurant, we can help you find commercial insurance solutions that fit your needs and protect your bottom line.
Types of Restaurant Insurance Coverage
How much coverage do you need? What types of policies should you hold? These are the questions many restaurant owners have when exploring coverage options. With so many different types of insurance, how do you know what is right for your business? If you own a pizza parlor that delivers to local neighborhoods, your coverage needs will be different from a coffee shop or a mobile food truck. Your agent can help you determine which policies fit your needs according to your unique risks.
Some of the most common types of restaurant insurance coverage include:
If you have a mortgage on the structure of your restaurant, chances are your lender requires property insurance. Even if you lease your space or own it outright, however, property insurance can still protect the value of the things you own, from the structure of your building to your signs, tables, kitchen equipment, point-of-sale systems, and more. This coverage usually compensates restaurant owners for damages caused by certain types of events, such as fire, smoke, and natural disasters. Note that some events, such as floods and earthquakes, are excluded from standard coverage and may require a separate policy or endorsement. Generally, claims made against your restaurant’s property insurance will be subject to a deductible, which is the amount you agree to contribute toward the total of your losses.
If a fire sweeps through your kitchen, you may have to close your doors for a few weeks while the restaurant is remediated and repaired. There are still bills to pay, though – even if your shuttered business is no longer generating revenue. With business interruption insurance, you can continue covering your expenses, from your payroll and mortgage payments to your accounting invoices and commercial vehicle payments.
General Liability Insurance
It’s not always possible to prevent every accident – even if you implement extensive safety training protocols. After all, simply opening your doors for business puts your restaurant at risk of liability, which can cost tens or even hundreds of thousands of dollars or more. When a customer slips on a wet floor or a member of your wait staff drops scalding hot coffee on a patron, you may need insurance that pays for medical bills, and perhaps even for legal fees and damages if your restaurant is sued.
Other Liability Insurance
We typically recommend extensive liability insurance protection for restaurant owners. In addition to general liability, this may include coverage for serving contaminated food, data breaches, or serving alcohol to an intoxicated guest who injures himself or others after leaving your establishment. If your restaurant delivers or caters to other locations, be sure to purchase commercial auto liability insurance to protect against damages caused by at-fault accidents.
Be sure to ask your agent about commercial umbrella insurance, which can help prevent disastrous losses due to large suits with damages and legal fees that exceed the limits of your primary coverage. Umbrella insurance provides supplemental protection when your financial liability is greater than the amount your general liability policy will pay.
Workers compensation insurance is not optional for most businesses – including restaurants. This coverage helps pay for an injured worker’s medical bills and lost wages due to a workplace accident. However, this coverage is not just beneficial to employees. It also protects your restaurant by reducing the risk of litigation.
The food you serve is the key to your restaurant’s income and revenue. If a power outage results in a loss of your frozen and refrigerated items, you could watch your profits wash down the drain. If you are forced to toss out some or all of your products due to food safety issues, food spoilage insurance can help cover your costs and losses. This can save your business thousands of dollars in replacement costs and give you peace of mind that your restaurant inventory is covered against a wide range of potential loss.
Get an Arizona Restaurant Insurance Quote
If you own a restaurant in the greater Mesa area, we want to meet you. As a local agency, we understand your risks and are committed to maintaining a close, ongoing relationship that allows us to continue providing the coverage you need for many years to come. We can provide coverage recommendations and also compare rates from commercial insurers across the state to better mitigate your business risks.