Your new restaurant startup faces several environmental and financial challenges. Because of that, you need all the protection available. The information below will help you understand the different types of small business insurance you need for your new restaurant.

4 Types of Business Insurance to Consider for Your Restaurant Startup

1. Property Insurance

Property insurance protects you against damage due to fire, storms, vandalism, and even theft. Premises coverage covers your building structure, including walls, carpeting, and roof. Business property coverage includes furniture, appliances, business equipment, and even inventory. Failure to guard against catastrophic damage could put you out of business in the event of a natural disaster.

2. General Liability Insurance

Liability coverage pays for repairs or medical treatments if you should accidentally injure someone or damage their property. For instance, if a customer should slip on spilled water and break a hip, general liability coverage pays for the hospital care. It also pays for any legal costs that arise out of the incident.

3. Workers Compensation

In Ohio, any business with one or more employees is required to purchase workers compensation insurance. It covers medical care for workplace injuries and illnesses. Note that it lessens your chances of being sued, since workers who take advantage of the free medical care waive the right to seek additional redress in court. Moreover, failure to comply with the law could result in various financial penalties.

4. Food Spoilage or Contamination Coverage

Restaurants are particularly vulnerable to the loss of food inventory. Food spoilage coverage reimburses you for losses due to prolonged power outage or equipment breakdowns. Note that you can also purchase mechanical equipment breakdown coverage as additional protection. Food contamination coverage protects you against food-borne illness breakouts due to mishandling or the purchase of contaminated ingredients. It pays to replace bad food, clean contaminated equipment, for employee medical tests, and for advertising to repair your public image.

For invaluable assistance designing a small business insurance policy for your restaurant, contact Somers Agency in Lorain, OH. They have served clients in the Greater Cleveland area for more than 120 years. They also specialize in home, life, condo, umbrella, and auto insurance and offer meticulous, personalized service. Visit their website to submit an information request or call (440) 324-3447 for a free, no-obligation insurance quote.