In the United States, the restaurant industry is projected to grow at 5% over the next several years. With a positive industry outlook and a demand from consumers for new restaurant experiences, over one thousand independent restaurants open each year. Without a comprehensive restaurant insurance plan, those restaurant business owners are exposed to a myriad of lawsuits and other financial loss.
TYPES OF INSURANCE RESTAURANTS NEED
- General Liability Insurance — General liability insurance protects you against third-party claims such as property damage, bodily injury, or personal injury. For example, if someone were to slip and fall on a wet floor in your restaurant.
- Product Liability Insurance — Product liability insurance covers you if your food products were to make someone ill. For example, you sell your signature BBQ sauce in bottles at the front counter and a customer became ill from consuming your BBQ sauce.
- Inventory Insurance — Inventory insurance protects you against loss such as food spoilage. For example, let’s say you lose electricity to your restaurant and your refrigerated products spoil overnight.
- Liquor Liability Insurance — If your restaurant manufactures, distributes, sells, or serves alcoholic beverages, you could be liable if you serve alcohol to a patron who then injures someone or causes property damage. For example, one of your servers provides alcohol to an intoxicated person who then drives and causes an accident.
- Commercial Auto Insurance — If you use a vehicle for your business operations, it may not be covered under your personal automobile insurance. Commercial auto insurance acts much like a personal auto policy but also includes coverages specific to business operations.
