5 Types of Insurance That a Restaurant Should Invest In

Photo of author

By Jacob Maslow

If you’re opening a restaurant, you probably know a lot about food but not much about insurance. You’re ready to create a fantastic menu, provide excellent service, and make customers happy. Don’t lose sight that you’re also becoming a small business owner. As such, you need the proper insurance coverage. Everything you’ve worked so hard for without it could be at risk. The following are five types of insurance every restaurant should invest in.

 

1. General Liability Insurance

 

This is one type of commercial insurance you don’t want to be without. It covers third-party claims for property damage, bodily injury, and personal injury.

 

Restaurants are busy places, and accidents can happen. A customer could slip on a wet floor or develop a food-borne illness. General liability insurance protects you financially from medical expenses and any legal claims resulting from these situations.

 

2. Workers’ Compensation Insurance

 

Accidents aren’t reserved for just the customers. You’ll have employees hustling to get food prepped, cooked, and served quickly. Inevitably, someone will eventually have an accident.

 

Workers’ compensation insurance is a must if you have employees. It’s legally required. This type of insurance covers employees’ medical expenses, lost wages, and rehabilitation if they get hurt.

 

3. Commercial Property Insurance

 

Commercial property insurance covers your building and its contents in the unfortunate event of a disaster. Let’s say your building burns down. You’ll need help financially when it comes to rebuilding. Even if you rent, you still need this insurance to cover your equipment, appliances, and furniture. You don’t have to wait for a fire to use it. It also covers things like theft, vandalism, and even damages due to things like a burst pipe.

 

4. Spoilage Insurance

 

This type of insurance is self-explanatory. It covers any food or beverage that spoils. Normally, you’ll keep on top of things and handle food safely, but what if there’s a power outage? Without power, especially over an extended length of time, you risk losing everything in your refrigerators and freezers. Replacing it would be expensive. Spoilage insurance will help cover these losses.

 

5. Employment Practices Liability Insurance

 

Employment practices liability insurance covers you if one of your employees accuses you of discrimination, harassment, or wrongful termination. These areas are tricky. You may feel justified in your actions and treat your employees fairly, but they may see some situations differently.

 

Without this type of insurance, you have nothing to protect you from lawsuits. Since most restaurants fall under the category of small to midsize businesses, you probably don’t have enough extra money in the budget to risk going without employment practices liability insurance.

 

This certainly isn’t a full list of insurance types that are available for restaurant owners. To ensure the proper coverage, ask your insurance agent to help you determine exactly what you need to feel confident when it comes to the unexpected.

Images Courtesy of DepositPhotos