Owning a restaurant comes with many inherent threats and liabilities that can hurt your profitability and reputation. If you own a large restaurant with many employees and customers, the odds of unexpected events are higher. Purchasing adequate restaurant insurance is one of the best solutions to protect your business. Here’s an overview of business owner’s insurance, one of the packages you need to protect your restaurant:
What Is Business Owner’s Insurance for Restaurants?
A business owner’s insurance is also known as a business owner’s policy (BOP). The insurance package features business property and liability coverage in one policy. BOP insurance packages include three insurance policies: general liability, commercial property, and business interruption. The coverage of a business owner’s policy doesn’t include auto insurance, workers’ compensation, or professional liability insurance.
Professional services, business vehicles, employees’ health, and disability are also left out of business owner policies. You’ll need add-ons to your BOP for more comprehensive coverage. Review each policy carefully to determine what the insurance provider covers and what requires additional policies. Here’s an overview of the three policies featured in a typical business owners insurance:
1. General Liability Insurance
Restaurants need general liability insurance to protect their restaurant against lawsuits raised by customers and other third parties for damages related to their business. General liability insurance can cover the damage if someone slips/falls and gets injured because of a slippery restaurant floor. The insurance pays for legal defense and settles awarded compensation, protecting your business finances.
2. Commercial Property Insurance
Restaurant owners use commercial property insurance to protect properties their businesses own or lease. You can use the coverage to protect leased equipment, mission-critical paperwork/records, fixtures, and more. If a fire, vandalism, or something else damages your business property or assets, commercial property insurance can cover the cost of repair and replacement.
3. Business Interruption Insurance
BOP insurance can feature business interruption policies, also known as business income insurance. This restaurant insurance protects your business against income loss from major events that prevent you from operating. You can use it to cover income losses from malfunctioning equipment, natural disasters, and more. Business interruption insurance can also cover income lost during legal inquiries that force you to close operations.
Which Restaurants Need Business Owner’s Insurance?
Any restaurant owner needs comprehensive coverage to protect their assets from litigations. Business owner’s insurance is standard coverage for owners of nearly all businesses. You need BOP insurance if your company has property, employees, and clients. The coverage can protect owners of restaurants, cafes, delis, bars, taverns, and catering or mobile food service. All these businesses face many threats that need proactive measures.
BOP insurance provides commercial property insurance, which protects your rented physical locations. General liability insurance protects you from lawsuits raised by injured customers. Business owner’s insurance also protects your inventory from theft and damages caused by faulty equipment, like malfunctioning freezers. Without insurance, lawsuits, loss of stock, or equipment damage can result in costly expenses, impacting your ability to generate income. Consider consulting a reputable insurance group for comprehensive commercial insurance in Texas.
What Are the Benefits of Business Owner’s Insurance?
Your business is at risk the moment you open your doors. Insurance can pay for legal defense fees, repairs, replacements, and settlements awarded to third parties when something unexpected happens. A business owner’s policy protects you from spending business savings to settle court cases. Insurance can help you recover following a major event like a fire accident or vandalism.
Purchasing BOP insurance has many other advantages compared to buying each policy separately. The package can offer reduced rates and gives you the ability to combat malicious and frivolous lawsuits. You’ll also have peace of mind knowing all major threats are covered. Choose leading insurance companies that focus on serving restaurants. Look into add-ons to protect other risks left out of typical business owners’ policies.
Comprehensive Restaurant Insurance
Insurance premiums, packages, coverage, and add-ons vary, so you should review each offer exhaustively. The best companies offer insurance for restaurants, bars, shopping malls, retail centers, and similar businesses.
You can work with national brands or local insurance companies. Choose companies that can assess your restaurant’s risks and provide comprehensive coverage for all threats. The best restaurant insurance is customized to your needs. If you have any concerns, seek clarification from the insurance provider. Understand all parts of the policy before committing.