Having the proper business insurance coverage is a critical part of running a successful restaurant. In fact, it can protect your establishment from liability claims that may amount to tens of thousands of dollars. Here are eight types of coverage your restaurant may require. Many of them are included in umbrella policies designed for restaurants.
1. General liability This type of insurance covers you in the event that a customer gets injured on your premises and you’re found liable. For example, a customer could sue you after slipping and falling due to a spill that wasn’t promptly cleaned up. 2. Property liability This type of insurance covers repair and replacement costs in the event of a fire, flood or other natural disaster. Restaurants are particularly at risk of fires, and in particular grease fires originating in the kitchen, so it’s important to have adequate property liability coverage. 3. Food contamination coverage This type of insurance protects you from claims arising from food-born illnesses, for example, if a customer sues after getting food poisoning. 4. Liquor liability If your restaurant serves alcohol, you could be held responsible for damages caused by an intoxicated customer. This happens when a restaurant continues to serve drinks to a person whom they should recognize is already intoxicated. Liquor liability covers damages resulting from such incidents. 5. Business interruption insurance This type of insurance covers you for revenue loss after an unexpected closure, in particular after a natural disaster. It also covers the expenses involved in reopening your business, for example the cost of renting a temporary location. 6. Non-owned auto liability This type of insurance is a beneficial if one or more of your employees sometimes drive their own vehicles for business purposes, for example, to pick up food products or restaurant supplies. Without this coverage, you could be held responsible for damages if an employee is involved in an auto accident while performing an errand. 7. Named peril There are a number of issues that are unique to the food service industry, such as food spoilage following a power outage and contamination due to pests. Restaurants obtain named peril coverages to protect themselves against such financial losses. 8. Cyber liability This type of insurance covers your restaurant for damages resulting from hacking, data breaches and other cybersecurity issues. This coverage is a wise precaution for businesses that conduct some of their business online or that handle sensitive credit card information. Restaurant insurance in Nova Scotia To explore which coverages your restaurant needs, and to find an affordable policy that offers these protections, trust the experienced brokers at Eisenhauer Insurance. To receive a free insurance quote, contact us today.