Restaurant Insurance can be complicated, but an insurance agent who specializes in restaurant insurance can help guide you through the process. Now, it is also essential that you understand some of the basics in order to make informed decisions.
3 Things to Consider Before Contacting an Insurance Agent
1 – What are You Insuring?
This may sound like a simple question; however, restaurant insurance covers many types of businesses including sports bars, nightclubs, pizzerias, coffee shops, fast food restaurants, upscale restaurants, delis, caterers, food trucks and more.
Each of those establishments has unique needs. For example, a bar selling alcohol may need liquor liability insurance; whereas, a fast food restaurant may not. A food truck has some unique risks that a brick-and-mortar restaurant does not.
An experienced agent will ask you many questions to determine your insurance needs. Taking some time in advance to think about what you are insuring and what your potential risks are helps you provide more accurate information, so your agent can ensure that you get the right coverage.
2 - What Types of Insurance do You Need?
Every restaurant is unique, but here are five basic types of insurance that most restaurants need:
- Liability Insurance
- Property Insurance
- Special Coverage Insurance
- Workers’ Compensation Insurance
- Commercial Automobile Insurance
Liability insurance
Liability insurance helps protect your business if someone – a customer, a vendor, etc. - sues you for bodily injury or property damage. This insurance covers legal fees and legal payouts when needed. In addition to general liability insurance, which is recommended for most businesses, there is also liability insurance that applies to specific needs such as liquor liability and product liability.
Property insurance
Property insurance helps protect the things you own such as buildings, restaurant equipment, and even the food in your freezers. Property Insurance typically covers damage caused by fire, smoke, wind, hail, lightning, theft and more. If you rent a space or have a mortgage on the property, property insurance is usually required by the lender or the property owner.
Special Coverage Insurance
Special Coverage Insurance helps protect items that are special or unique. Specialty Insurance may cover lost income if your restaurant is forced to shut down, equipment breakdowns, employee theft, forgery, and more.
Workers’ Compensation Insurance
Workers’ Compensation (WC) helps protect both you and your employees if they are injured on the job. It covers the injured employee’s medical expenses and lost wages, and it helps protect the restaurant if the employee sues the restaurant. WC is mandated by the government for most restaurants with employees.
Commercial Vehicle Insurance
Commercial Vehicle Insurance helps protect vehicles – trucks, vans, automobiles - owned, leased, or rented by your restaurant. This includes food trucks, vehicles used to deliver food, etc. Typical coverage under commercial vehicle insurance includes bodily injury and property damage liability, personal injury protection, and physical damage to your vehicle.
3 - What Affects the Cost of Your Insurance Premiums?
Many factors go into determining the cost of your insurance premiums, and different insurance companies place emphasis on different factors, which is why using an independent insurance agency like American Insuring Group is always the best way to go. We check the cost of your insurance with several different companies.
Here are a few factors insurance companies use to determine the cost of your insurance premiums:
- Type of property
- Loss history
- Years in business
- Type of activities (ID checkers, delivery, alcohol service, entertainment, etc.)
- Hours of operation
- Size (property size, payroll, sales, etc.)
Get the Best Price on the Right Insurance for Your Restaurant
American Insuring Group specializes in restaurant insurance. We have relationships with several insurance companies, so we can compare prices to ensure that your business is protected at the lowest price. Give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or find us online.
