The restaurant industry is faced paced and always evolving, and your success depends on having the right type of insurance protection. One thing you can expect to happen are unexpected scenarios, accidents, and disruptions that may impact your day-to-day business dealings. Facing these challenges and having a plan in place when unforeseen accidents happen is essential to the long-term success of your restaurant business. Read on to discover some key coverage considerations you need to safeguard your operations.
Below Are Some Essential Coverage Considerations for Your Establishment, but Not Limited to:
By understanding and acquiring the right insurance protection, you can focus on optimizing the dining experience(s) for your patrons and the safety of your employees, while minimizing unique risks and liability situations the restaurant industry is faced with. Below are some of the top types of coverage for every restaurant:
General Liability- Liability insurance is designed to protect your business from third party claims for personal injury, bodily injury and property damage. Accidents can and do happen all the time, so this type of protection is crucial. For example, one of your customers slips on the floor when going to the restroom due to a spill that has not been addressed and suffers injury. This will provide protection (up to the limits of liability) for medical costs and legal claims that otherwise could be brought against you and your establishment.
Commercial Property- This insurance is not only needed but required as it protects the building itself, building equipment, and the contents of the restaurant against covered losses that can and do happen such as fire, lightning, natural disasters, theft, and vandalism. Having the right type of commercial property insurance is vital in the restaurant industry because when a covered peril happens, you need to be confident you will recover the expenses associated with the damages caused by unforeseen scenarios.
Business Interruption- Restaurant owners are often faced with unique risks (fire, equipment failure) that can lead to a temporarily halt in business operations. Imagine having a fire that damaged the entire kitchen and part of the dining room. While you are having repairs done, this type of insurance covers ongoing business expenses during the shutdown along with lost income so you can focus on getting your establishment back up and running as quickly as possible.
Liquor Liability- If your business serves alcohol, you must have liquor liability insurance. It is designed to protect you and the restaurant from legal claims that may arise from alcohol-related situations/accidents. For example, if a customer comes into your business and excessively drinks, then gets into a car and causes an accident, you could be faced with legalities that could result in financial ruin. This insurance provides protection for legal expenses and possible settlements.
Cyber Liability- Every day there is news about data breaches, hacking or many other cyber scenarios, and restaurants are no exception. Restaurants use computer technology for a large portion of daily operations so experiencing these types of potential cyber situations can be very costly. This coverage helps recover the costs of legal fees associated with the criminal activity and expenses of notifying affected customers, not to mention any costs associated with reestablishing your business reputation.
Workers’ Compensation- This is protection for your employees since employee safety is essential in the restaurant business. It is designed to protect the employee(s) who suffers injury or illness while on the job. It covers lost wages, medical expenses, and rehabilitation costs. Furthermore, it protects your restaurant from potential legal claims/lawsuits associated with workplace injuries or illnesses.
EPLI (Employment Practices Liability Insurance)- This coverage safeguards against legal claims related to employment. Examples may include racial/age discrimination, wrongful termination, harassment, and other potential lawsuits that could arise from employment associated disagreements.
Secure the Right Protection for Your Restaurant Today
Burkett & Associates understands that your restaurant may be your biggest investment which is why we want to assist you in obtaining the right type of business protection. Call us today to discuss your Alabama business insurance needs and we will work with you to optimize protection and minimize risks. Stay tuned next month for some additional coverage considerations to safeguard your restaurant.
