What You Need in Restaurant Insurance
As a restaurant owner, what you need in restaurant insurance probably includes coverage for your building, your business personal property, the personal property of others in your care, liability and employee on-the-job injuries.
And that is probably just the beginning since restaurants face some pretty unique risks. Below are some common industry risks that can help you think about what you need in restaurant insurance. Not every insurer or policy offers coverage for each one, so it’s important to have an idea of what you really need in restaurant insurance when you’re shopping for coverage.
Restaurant Risks
The Risk |
Potential Problems |
|---|---|
|
Power or mechanical failure |
Major food spoilage |
|
Food contamination |
Your restaurant can lose income and food inventories; you're responsible for medical expenses for customers who fall ill as a result of contamination, the expenses to clean and sanitize your equipment and the lost inventory; you could face a public relations crisis. |
|
A fire or other disaster shuts your restaurant down for an indeterminate amount of time |
Beyond the cost to repair your restaurant, you could lose thousands of dollars in revenue. |
|
A data breach |
You may be legally required to take action if your customers' credit card information is stolen. |
|
An intoxicated customer |
If the customer leaves your restaurant and is involved in an accident, the alcohol served at your restaurant may be considered a contributing factor to the accident. |
|
An employee causes an accident while driving one of your business vehicles. |
As the employer and vehicle owner, you are typically responsible for any damages resulting from that employee's accident. |
|
An employee believes they were wrongfully terminated or is a victim of sexual harassment or another form of discrimination. |
You will have to hire a lawyer to defend yourself. You might also be responsible for a settlement award. |
|
The unthinkable happens: You or a key business partner pass away. |
Your restaurant may suffer sever financial setback. Furthermore, the surviving partner may not have enough money to buy the deceased partner's share of the restaurant. |
A few of the other coverages that restaurant owners often need include coverage for property damage related to an off-premises utility failure; employee dishonesty and theft; sewer and drain backup; and dish and glass breakage.
As you can see, restaurant insurance is important—and complex. To get some peace of mind about your coverage, it’s important to speak with an insurance professional like an Erie Insurance Agent. ERIE has a program that includes products and services specifically developed to provide restaurant owners with the protection they really need. A local Erie Insurance Agent can tell you more about it and give you a free quote.
