In the restaurant industry, it is common to hear buzz about which kinds of coverages you should have and which are a waste of money. Navigating the proper coverages and weighing costs versus benefits can be extremely timely – especially when you also are concerned with running a business. To make life a little bit easier for you, your friends at Restaurant Programs of America (RPA) have outlined some of the most important coverages you need for your restaurant to thrive for years to come. It is important to note that each dining establishment is different, thus there might be some coverages not listed that would better serve your business than some of the items on this list. Below are the top 5 types of insurance to consider to best protect your restaurant business.
Workers’ compensation insurance is almost always a necessity for any business. Although some states don’t require workers’ compensation, it is usually a good idea to secure this coverage if you are looking to protect your business. Workers’ compensation is paid out when an employee is injured or gets ill on the job and is unable to perform his or her duties. Without workers’ compensation coverage, your business is liable should the employee decide to sue. However, workers’ compensation insurance pays the employee for time missed due to the injury or sickness. In turn, the employee cannot sue your business. This small cost has a huge payoff, especially in the restaurant industry, where injures are all too common.
In today’s society, lawsuits are commonplace. As a business owner, you can run everything in your business with no faults at all and still be held liable in court. Lawsuits, whether you are at fault or not, are extremely costly. So costly that those suits have the power to force businesses to close their doors. General liability coverage protects your business in the event that a patron decides to sue your business. Whether an unruly patron causes a fight, or someone on your staff commits a wrongdoing, general liability insurance is a necessity in ensuring your restaurant has all of its bases covered.
Business Interruption Insurance
Life is full of unexpected events. Whether it is a natural disaster, fire or foodborne illness outbreak, there are several reasons your business may need to temporarily shut down. When a restaurant has to close for maintenance, repairs or any number of other factors, the business is losing significant amounts of money each day. With business interruption insurance, your restaurant can focus on doing whatever it takes to open its doors again, instead of worrying about which bills to pay. Business interruption insurance provides coverage during these unforeseen life events to help your business stay afloat.
BYOB Liquor Liability Insurance
With the increasing costs of owning a liquor license in some states, many restaurants instead choose to allow BYOB to attract customers and save on costs. This allows patrons to bring their own alcohol. That way, they can still enjoy a drink, without the business having to pay for a license. However, even without a license these businesses can be held liable for any alcohol-related instances that occur on its property and the legalities thereafter. BYOB liquor liability insurance is vital to mitigating the costs that may be associated with these lawsuits and disputes. If BYOB is something you want to offer to patrons, then you must secure this coverage.
One of the common insurances that offers the most protection - but is underutilized - is valet insurance. Parking lots tend to have the highest rates of accidents. Now pair that fact with the idea that members of a valet team are driving cars they are not familiar with, and navigating these cars in and out of tiny spaces. This is where accidents are prone to happen if your company offers valet services. With the right valet insurance coverage, your valet service can remain a profitable asset to the business.
Secure the Top Five Restaurant Insurances Today
All of the restaurant insurance coverages mentioned above are absolutely important in securing the longevity of your business. This list, however, is by no means comprehensive. Each restaurant has a different business model that will help determine which coverages are the most necessary. It is important to speak with an insurance agent who is familiar with restaurant insurance specifically to ensure your restaurant is both properly covered and not overspending on coverage. Contact the professionals at RPA for comprehensive assistance with covering your restaurant business.