5 Things to Know About Restaurant Insurance
Restaurant insurance policies cover claims related to lawsuits, slip-and-fall accidents, and foodborne illnesses. This insurance protects restaurant owners from the financial strain of legal fees and employee injury compensation. Coverage for customer injuries protects the business against legal settlements. Here are five more things to know about restaurant insurance:
1. Protects Against Property Damage
Restaurant insurance protects property and assets from various risks. If your kitchen appliances break down or your furniture is vandalized or stolen, you can rely on this insurance to help you repair or replace them. If refrigeration units are insured, they are replaced when they malfunction. Wall and floor coverings are restored after disasters, and dishwashers and ovens can be replaced after accidents without causing a financial burden.
When lighting fixtures and HVAC systems break down, the insurance can provide funds for repairs. The insurance also includes coverage for outdoor signage and parking lots if they are damaged by weather or third-party incidents. Some restaurant insurance offers coverage for storage areas that are susceptible to losses and covers the cost of repairing damaged windows and glass doors.
2. Provides Liability Coverage
Liability insurance covers the costs associated with accidents that occur due to slippery or uneven floors. Policy providers handle food poisoning claims, reimburse legal costs, defend choking incidents, and cover damages from falling objects. If customers sue your business because of hot beverage spills or allergic reactions that occurred in your restaurant, the insurance will pay for their medical costs. Liability coverage also includes improper signage and employee negligence, and it safeguards the business against the harm of false advertising and broken furniture and equipment.
3. Covers Business Interruptions
Restaurant insurance covers business interruptions after damage from floods or fires interferes with operations and leads to revenue losses. It protects against natural disasters, severe weather, and earthquake damages by providing compensation for reconstruction disruptions. It could also support your business as it recovers from power failures and building evacuations. If local authorities temporarily shut down your restaurant, the insurance provides you and your employees with compensation for income lost due to the downtime.
4. Protects Employees
A comprehensive insurance policy covers workplace injuries and medical expenses. If employees experience repetitive strain injuries or kitchen accidents, they can receive medical bill reimbursement. The insurance provides financial protection for the business by compensating employees for losses sustained from burns, cuts, strains, and slip-and-fall incidents. When delivery accidents or lifting injuries occur, employees are reimbursed by the insurance provider. The insurance also provides coverage for food-handling illnesses and broken bones, allowing your staff to return to work once they are fully recovered.
5. Covers Inventory Losses
Restaurant insurance covers inventory losses, including theft and spoilage costs for perishable food and beverages. If dry or frozen goods are damaged due to a power outage, you can get reimbursement to replenish your inventory. This insurance covers premium ingredients that experience unexpected spoilage and protects bulk orders from theft-related losses. Restaurant and bar insurance also covers inventory during transit and reimburses damages related to contamination.
Explore Restaurant Insurance Policies
Restaurant owners can create custom insurance policies that include general liability, property, workers’ compensation, and business interruption coverage. This allows owners to protect their business, property, inventory, employees, and customers. Custom restaurant policies can be adjusted as a business grows, preventing gaps in coverage. Contact an insurance provider today to learn more about protecting your restaurant.