6 Things to Look for in Restaurant and Bar Insurance
According to data collected by FEMA, over 40% of small to mid-range businesses never reopen their doors after disaster strikes. Plus, even if you’re able to reopen your doors, you’ll have quite a hole to dig yourself out of thanks to the loss of revenue you experienced while your bar or restaurant is closed.
In addition to protecting your investment and your employees, it’s simply common sense to have a disaster preparedness plan for your restaurant or bar.
One of the most important components of that plan?
Having restaurant and bar insurance.
However, with so many options on the market today, it can be difficult to know what you need to look for when it comes to finding the right insurance. Here, we’ll tell you some of the most important elements that your restaurant and bar insurance absolutely needs to have.
1. General Property Insurance
This is the most general (and most common) type of restaurant and bar insurance.
This ensures that you’re covered in the event of any physical damage that’s done to your place of business. Additionally, general property insurance takes care of most of the personal property that was damaged inside of the restaurant itself.
Keep in mind that many restaurant and bar owners also choose to tack on replacement cost coverage. Although it’s slightly pricier, it covers the cash value of your business.
2. Liquor Liability Coverage
As a manager or restaurant/bar owner, you’re likely already aware of the importance of having professional liability insurance.
However, if your restaurant or bar is planning on serving alcohol, you’ll need to get a little more specific when it comes to your coverage.
You need to remember that a general liability insurance plan won’t do anything to cover any damages, injuries, or other issues that happened as a result of liquor sales or service.
While some states legally require you to purchase this type of insurance if you plan to sell alcohol, it’s a smart idea to purchase it either way.
Keep in mind that, the more liquor you sell, the more your coverage will cost you. So, always make sure that you calculate what you can afford to pay in relation to how much you sell.
Finally, we suggest meeting with a lawyer or insurance agent to go over the specific liquor laws in your state. This will help you to avoid any expensive — and dangerous — issues in your place of business.
3. Commercial Auto Insurance
These days, delivery is more popular than ever.
This means that, if your employees are using their own cars to make deliveries, or if you’ve purchased a few specific vehicles for the purposes of delivery, you’re going to need commercial auto insurance.
Commercial auto insurance doesn’t just cover the costs associated with repairing or replacing a car. Usually, it will also help to cover the costs of any injuries associated with a commercial car accident.
Finally, if your restaurant’s delivery vehicle ran into someone else’s property, you’ll likely be able to use your commercial auto insurance to help you pay for the damage caused.
4. Natural Disaster Coverage
Especially if you live in an area that’s prone to earthquakes, fires, or hurricanes, then it goes without saying that you’ll need to look into restaurant and bar insurance that offers you coverage in the event of a natural disaster.
Remember that you may need to buy several different types of disaster insurance, depending on the issues that you’re the most at risk for. When disaster strikes, be sure to get in touch with your insurance company as soon as possible to get in line for your claim.
Keep receipts of everything you purchase, take lots of photos, and attempt to give an estimate when it comes to loss of income.
Keep in mind that some insurance won’t cover your bar or restaurant’s decor, especially if you’ve purchased valuable artwork. If you’ve invested a significant amount of money in your restaurant’s art or collectibles, then you should look into getting fine arts coverage.
5. Food Contamination Insurance
Have you ever spent a small fortune on ingredients or liquor, only to discover upon delivery that it’s completely unusable?
What about the losses you suffer when something goes wrong with your freezer or refrigerator?
Worst of all, do you currently have coverage for the serious payouts you could be facing if you unknowingly give your customers contaminated or spoiled food and drink?
If you’re not sure, then you need to look into food contamination insurance immediately. It’s designed to cover a wide range of potential contamination issues, from medical bills for sick diners to vaccines your employees need to stay safe when handling food.
It will also pay for spoiled or damaged food to be replaced, and at times, the loss of income associated with contaminated ingredients.
6. Worker’s Compensation
Did you know that the average employee receives over $21,000 in compensation if they’re injured on the job?
If you’re stuck paying that out of pocket, those high costs could cause your bar or restaurant to have to close its doors. And even if you manage to stay open, a highly public worker’s compensation lawsuit could cause your business’s image to take a serious hit.
Sure, working at a bar or being a server at a restaurant might not be as dangerous as working in construction. However, slip and falls, burns and other employee injuries can and do happen.
It’s always best to make sure the bar insurance you select also includes worker’s compensation.
Ready To Get Restaurant And Bar Insurance For Your Business?
Thanks to this post, you know the main things that you simply cannot compromise on when it comes to restaurant and bar insurance.
Don’t open your doors without being insured, and don’t operate for one more day without it.
When you’re ready to increase your coverage, or if you’re looking into coverage for the first time, we invite you to spend some more time on our website to learn about what we have to offer.
Use our easy quote page to receive an estimate. You can specify your location, your type of business, upload documents, and stress the kind of insurance you’re looking for.
Have additional questions about how to protect your business?
Keep checking back with our blog to learn more about how you can improve your coverage and recoup your losses after an accident or disaster — no matter what type of business you’re in.
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