Select A Business Insurance Policy That Caters Specifically To Your Industry

By Author: Mary Fonesca
Total Articles: 18
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Owning and operating a restaurant requires a large amount of work. Several components have to come together for a dining establishment to be successful. When you think it over, a stocked freezer and kitchen pantry and ensuring there are enough tables in the dining area are only the basic principles of running this sort of enterprise. Your foremost concern as a restaurateur ought to be the protection of your business. Whether you are just about to venture into the food and beverage industry or have already been set up, restaurant insurance is one thing you need to have.

What is restaurant insurance?

This is the type of business insurance catering specifically to those in the food and beverage industry. Whatever the size of your business, there will always be a variety of potential risks. This holds true whether you manage a small diner or coffee shop, or a Michelin-starred bistro. This insurance plan serves as protection against many different problems, which might include but aren't limited to damaged equipment, accidents, as well as liability lawsuits.

One aspect worth discussing is that this kind of cover ...
... isn't your typical general business insurance. It consists of many factors that tailor to the needs of a restaurant. Examples of the standard covers include:

General Liability

This is the most common of the many different covers encompassing this type of insurance coverage. It's a plan that protects you from common problems occurring within your line of work. This can consist of situations such as someone slipping and falling because of wet floors, food poisoning issues, and other claims that could come from different sources. This policy comes in handy given that people sue for almost anything these days. Plan options vary depending on provider, but bear in mind that this ought to be one of the most flexible policies.

Property Damage Insurance

This policy provides coverage against fires, and other events which may damage your establishment. Although disasters like floods and earthquakes may cause the same kind of damage, they are usually not included in a standard coverage. Most policies also cover furniture, fixtures, or inventory stored within your establishment. Depending on your provider, you can insure these things for a replacement cost or actual cash value.

Business Income Interruption

Another potential risk of running a restaurant is shutting your doors due to unforseen events. This is the reason behind this insurance policy - to safeguard your revenue stream in case there is a loss or serious damage to your business. Fires, water damages, and other hazards are a reality; and this policy addresses your lost revenue during the time your restaurant goes through repairs and reconstruction. It's a form of overall protection during your time of need.

Do an exhaustive assessment of your enterprise prior to acquiring restaurant insurance. Doing so will help you select which policies you will need. Aside from the three common insurance policies, others you may be interested in include liquor, automobile, and employment practices liability, worker's compensation, and food contamination insurance. Look into what your business requires of you in the near future to help make the proper decisions. It would also help to look at the options offered by the different providers. See what premiums work and don't work in order to determine the best choices for your business.

Mary Fonesca is a first-time restaurateur researching the different business insurance options, particularly restaurant insurance.