Specialty Insurance

3 Reasons Restaurant Insurance is Necessary

Owning your own restaurant can be a lucrative and rewarding experience, but it also comes with a lot of responsibility. Not matter how old or new your restaurant is, restaurant insurance is necessary.

Your customers view your restaurant as having the convenience of simply entering, ordering the food they are in the mood for and paying their bill. However, as a restaurant owner, you see everything that is behind the scenes, everything that determines whether your restaurant will be successful or not. Unfortunately, many restaurants close within their first year and most fail within the five years.

There are measures you should take to help your restaurant succeed; one of which is restaurant insurance.

A Business Owners Policy (BOP) that includes General Liability & Property Coverage is a building block for a successful restaurant, because nothing will force you to close your doors quicker than a costly lawsuit. Here are three reasons restaurant insurance is necessary.

Disasters Happen

If the kitchen of your restaurant is like most, there are open flames, scurrying coworkers, and appliances that are frequently temperamental; all of which are potentials that can lead to kitchen disasters. Just one kitchen fire alone can damage your workspace and your expensive equipment, ultimately forcing you to shut down until the damages are repaired and equipment is replaced.

Having a Business Owners Policy with property coverage in place will help you get back on back on track by reimbursing you for the cost of your damaged equipment caused by a fire, vandalism or theft. It may also help to cover your expenses if the incident is severe enough to stop the operation of your business.

Accidental Guest Injuries

There are a number of scenarios in which your guests may get injured while on your property. For example, if one of your servers accidentally spills a pot of hot coffee on an unsuspecting guest. An accident like this can quickly turn a normal day at the restaurant into a disastrous one. A general liability insurance policy that covers bodily injury to others would handle this type of claim for you and may even lessen the likelihood of a major lawsuit by quickly covering the injured person’s medical bills.

Alleged Food Poisoning

While your restaurant follows every one of the stringent health codes and you and your employees do everything in your power to prevent food-borne illnesses, this is a risk food businesses face daily. If a customer becomes sick after eating at a restaurant, they can and often do, sue for damages against the restaurant. Without enough liability insurance in place, one single health-related lawsuit could potentially bankrupt your restaurant.

It is important to understand that there is not a one-size-fits-all approach when it comes properly insuring your restaurant. Your coverage will depend on the location, size, and type of establishment. The only way to ensure you are efficiently covered is to talk with your insurance provider about your individual needs for general liability insurance.

Now that you know why restaurant insurance is necessary, contact Brashears Insurance today to ensure your restaurant is sufficiently covered.