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Just like any other business, restaurants need a solid insurance plan to protect against a wide range of potential problems. However, food service entails several unique risks that can require owners to add extra coverage in their business insurance policies. If you’re a restaurant owner in search of insurance aid, below are seven types of plans that you should discuss with your insurance agent and why they’re important.

7 Types of Insurance to Get If You Own a Restaurant

1. Property

Property insurance is standard in most business policies. It protects against damages caused to your physical location and the goods inside. For example, it covers property damage related to fires, storms, or theft. It can also help pay to replace or repair damaged kitchen equipment. Many property plans also offer business income insurance to make up for lost revenue if the restaurant must be closed.

2. General Liability

If a patron is injured on your restaurant property, your business may be held liable for any associated medical expenses. It is integral that you have this form of insurance in case someone were to burn themselves or fall on your property. General liability covers these costs, as well as any related legal costs.

3. Food Contamination

business insuranceSpoiled food can be a major loss for your restaurant and can restrict the services you can provide. Food contamination coverage is a specific plan designed to cover the cost of perishable items that have gone bad due to a refrigerator malfunction. 

4. Worker’s Compensation

Worker’s compensation is another standard plan found in business insurance policies. In simple terms, this coverage will pay for lost wages and medical fees for employees who are injured on the job. This coverage also prevents employees from suing your business for injury-related damages.

5. Liquor Liability

If you serve alcoholic beverages at your establishment, liquor liability coverage is a must. It is designed to pay for injuries that may be caused by intoxicated patrons.

6. Sewer Backup

While property insurance will cover some types of water damage, it will typically not pay for sewer backups. This is a problem that puts the health and hygiene of your restaurant at risk. Fortunately, additional insurance can be added to your policy to cover these damages, as well as those related to floods.

7. Auto

If your restaurant has catering vans or makes deliveries, every vehicle should be covered by a commercial auto insurance policy. Even if you or someone else owns the vehicle, personal car insurance will not always cover auto accidents that occur during business activities.

 

Kleppinger Insurance is dedicated to simplifying all of your business’ coverage needs. Serving personal and commercial clients in Bethlehem, PA, this independent insurance agency will shop the industry’s best solutions to tailor the perfect policy for your restaurant. In addition to making sure all related risks are covered, these specialists will help you get maximum protection at a competitive rate. Learn more about these options online or call (484) 357-1485 to receive your free business insurance quote.

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