Operating a restaurant comes with a variety of risks, including those that pertain to unforeseen circumstances and neglect. Serving someone food that ultimately makes them ill could be grounds for a lawsuit, and encountering a situation in which an employee is injured due to the improper maintenance of a piece of restaurant equipment could result in you being held liable. These situations and others could be avoided with proper insurance coverage.
Property And Liability Insurance
In many states, property and liability insurance are two types of coverage required for a restaurant owner. If you have a mortgage lender to who you make payments, there may be a clause in your loan paperwork that mandates you to acquire a minimal amount of each type of coverage. Property insurance will protect your premises in the case of a fire or vandalism. Equipment and the materials of your building may be partially or fully covered.
Liability insurance covers a wide range of incidents, including slip and fall accidents and food illnesses. This type of insurance is not limited to what occurs in your place of business. If you have a delivery service that involves drivers transporting food to clients who order in advance, basic liability insurance for automobiles will need to be acquired.
Food Contamination And Peril Insurance
Food stored in a freezer unit that is well above freezing could become unsafe to eat. Food contamination insurance will allow you to recoup part or all of the loss. Peril insurance is similar to property insurance, but it covers distinct disasters that result in damage to a structure and its contents. High wind events, floods, and earthquakes are some natural disasters that could greatly affect the condition of your business. Without peril insurance, you may not have the funding necessary to make repairs.
Workers' compensation coverage is a requirement in most jurisdictions. It allows an employee to recoup monetary losses that result in their inability to work for a temporary amount of time, due to an injury. Unemployment insurance is another type of policy that will protect your workers during situations that involve them being temporarily suspended from their position.
If your business closes down for a while or if someone encounters a hardship, which makes it impossible for them to maintain their status at your restaurant, unemployment will provide them with a portion of their regular earnings each week, for a predetermined amount of time.
For more information about different types of restaurant insurance, contact a local insurance company.