Restaurant insurance may not be at the top of your list of necessities, but it certainly should be! When you’re running a small business, you never know what might happen and how much money an unexpected event could cost you in terms of time and resources. If you’re just getting started with restaurant insurance or are looking to find out more about all the different kinds of insurance available to businesses, here’s everything you need to know about the five types of restaurant insurance every small business owner needs.
A standard general liability policy protects you from claims that are related to your business operations. General liability policies typically cover bodily injury and property damage, but some also cover certain types of advertising injury and employment practices.
You’re responsible for any physical damage you cause to someone else’s property—whether that’s a wall, car, or person. This is sometimes called general liability. If a customer slips and falls in your restaurant because there are puddles on your floor, you may be held liable for damages. You can usually purchase liability insurance for about $2,000 a year.
If someone gets hurt on your property or if your employees accidentally damage a customer’s property, workers comp covers those damages. For example, suppose an employee slips and falls in your restaurant—then sues you for pain and suffering—if that worker is covered by workers comp, his/her claim will be handled by his/her insurance carrier.
Whether you’re a delivery driver or someone who drives for work, your auto insurance needs to be commercial. To protect yourself and your business, we recommend commercial auto insurance. It’s designed for vehicles that are used commercially and comes with liability limits as high as $1 million per accident. If your vehicle is being used for both personal and business purposes, it’s important to make sure you have both types of coverage.
Protecting your business from lawsuits is essential, and one of the most important types of insurance for restaurants is product liability insurance. Product liability insurance protects businesses against legal issues if their products cause harm to consumers. For example, if a customer were to become ill after eating a meal in your restaurant, they could sue you for negligence due to improper food handling. However, if you have proper product liability insurance, that lawsuit will be covered by your policy and won’t come out of your business’s pocket.