Owning and operating a restaurant can be a risky business, with many types of inherent perils, so having the right type of restaurant insurance is crucial for your protection. Protecting your business against potential hazards is a must; however, the cost of restaurant insurance premiums can differ depending on various considerations unique to each restaurant. Read on to discover some key factors that may affect your restaurant insurance premium(s).
Important Factors That May Impact Your Insurance Premium Costs Include, but Not Limited to:
Restaurant Type- Each type of restaurant is faced with unique challenges and risks so your insurance costs may vary depending on certain factors. For example, a fine dining restaurant may require more specific insurance needs than that of a mom-and-pop diner or fast-food restaurant. Certain factors that may impact premiums include the type of food offered/served, operating hours, and whether there is live entertainment.
Restaurant Size– If your restaurant is large (square footage), then typically it allows for larger dining rooms and more patrons. The size of your establishment will impact your insurance costs due to larger square footage, more patrons and staff, and thus, a higher risk of losses occurring. If a fire occurs in a large space, the cost to repair and replace the dining areas, levels, and large kitchen would be substantially higher than if you owned and operated a small establishment.
Number of Employees- The more staff you have, the higher your insurance premium will be. More employees working for you at varying roles, leads to a higher risk of injuries/accidents, which would pose higher workers’ compensation expenses. Because of that you can expect to have a higher restaurant insurance premium than a small establishment with fewer staff.
Restaurant Property Values- This is an important consideration when insurance premiums are calculated. The property value includes the building itself, the contents of the building, restaurant equipment, and inventory. If you have a large property with lots of equipment, then your insurance premium will be higher. If severe weather conditions destroy your property, certain factors that may affect your premium costs include:
- Age and condition of the property
- Square footage
- Age and condition of the equipment (HVAC, ovens, refrigeration units)
Keep in mind that higher property values correlate to higher replacement costs when the unexpected, catastrophic loss happens which directly impacts your premium costs.
Alcohol Sales- If your establishment serves alcohol, you can expect a higher insurance premium. Selling and serving alcohol is considered to increase the risks of a loss happening due to possible fights, being overserved, and other alcohol related scenarios. If you serve alcohol, then you must have liquor liability insurance which does increase your insurance premium costs.
Burkett & Associates is Here to Serve You with All Your Restaurant Insurance Needs
All the above factors play a role in determining your specific restaurant insurance premium costs. Each restaurant is unique and so should the insurance that protects it. Burkett & Associates specializes in assessing your specific insurance needs and can assist you with any questions and concerns you may have to protect your investment. Don’t wait! Call us today for all your Alabama restaurant insurance needs.
