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While we specialize in restaurant insurance here at Restaurant Programs of America (RPA), there is definitely some overlap in the insurances small businesses and restaurants will require. Restaurants are, after all, usually small businesses. As a small business owner, we understand that there are a million things you have to manage each and every single day. Insurance policies are one of those things most people wish they had when it is too late. Before you find yourself wishing you had the coverage you need, learn more about the 5 types of insurances your small business needs, and secure the right level of coverage today.
1. General Liability Insurance
There are two types of general liability insurance – product liability insurance and premises liability insurance. Both are extremely important for any small business owner selling a product or service to a consumer. Product liability insurance protects you against claims brought against you because of something your business sells. For example, in the restaurant world this may be a customer suing the owner because of an allergic reaction to the restaurant’s food or food poisoning. Premises liability insurance will protect your business in the event that something happens on your property. For example, if a customer were to damage your establishment or injure himself or herself on your property. These lawsuits cost a ton of money and time, so make sure your business is covered in the event that you are liable.
2. Workers Compensation Insurance
This insurance may not even be a choice for your small business – in most states, workers compensation insurance is required. This coverage protects both your employees and your business, so it should absolutely be secured even if your state does not require it. If an employee gets hurt or sick on the job, workers compensation insurance will pay out his or her normal pay while he or she is able to get the necessary care. In exchange for taking the compensation, your employee cannot take legal action against your business for whichever injury or illness he or she sustained.
3. Business Interruption Insurance
Unfortunately, as a small business owner you need to be prepared for all of life’s unexpected events. Whether you have a family emergency and cannot open your business, you are dealing with a foodborne viral outbreak, the weather is too severe for business or there is a maintenance emergency – there are countless reasons your business may not be able to open its doors for a day. That is a huge loss of income, a loss that can seriously harm a small business. Business interruption insurance is there to protect you and back up your business financially in these events, so that you can focus on dealing with the emergency and opening your business once again.
4. Property Insurance
Natural disasters, car accidents and any other events that result in severe property damage can seriously set back your business in repair costs. Sometimes, the damage may be so bad – for example, in the case of a fire – that your business is never able to open again. With a comprehensive property insurance policy, your business will be covered should your establishment incur any damages. With all of the time and money spent building your business, it deserves a small investment in ensuring it can stay open.
5. Employee Dishonesty Insurance
If your small business has employees, then employee dishonesty insurance may be the final coverage your business should consider. Regardless of the vetting you do when hiring, there will be some employees who can really cost your business, intentionally or not. Whether it is an employee over-serving a customer or an employee stealing from your business, employee dishonesty insurance protects you and your business. The experts at RPA also will help your business develop an employee dishonesty policy to further safeguard your business.
Contact RPA Today
If you own a small business, take the first steps in protecting it today by contacting RPA. One of our representatives will be happy to learn more about your business to determine the right level of cost-effective coverage needed to best protect your business.