Why do I need restaurant fire insurance? There are many reasons why you should buy restaurant fire insurance.
The management of a restaurant is a difficult task. You have to manage the whole office in addition to worrying about the staff, service, food quality, and customer experience.
Why do I need restaurant fire insurance?
You can imagine how much time and effort things like taxes, insurance, consumer safety, profitability, and laws can consume. We wrote this page with it in mind. Think of it as a simple, five-minute primer on the types of restaurant insurance you require, the best insurance companies, and how to reduce your insurance expenses.
What types of insurance are required for restaurants?
Business General Liability
Restaurant liability insurance is the most important types of insurance that every restaurant should have. It safeguards you from physically injuring clients or causing them property damage.
To help you understand what we mean, we’ve gathered a few samples.
Slip and Falls: The most frequent claim we receive for restaurant insurance is a slip and fall. This frequently happens when a client falls and wounds themselves when they hit the ground because of the wetness (or another substance on the floor).
The majority of the time, this is a “medical payments” claim, which falls inside the policy’s limited limit and covers minor medical expenses up to $5,000 regardless of fault. These allegations, meanwhile, occasionally end up costing more or turning into a lawsuit. Almost always, the general liability insurance coverage will cover this incident.
Food poisoning: When you run a restaurant, you always have to deal with claims of food poisoning. Some of these assertions might not be true, while others might. These claims may be covered by a restaurant insurance coverage if someone gets hurt after eating your cuisine.
Customer Burns: The general liability policy will cover any bodily harm you cause to a customer, whether they are burned by hot liquid you spill on them or by touching a hot plate.
Commercial Real Estate
The business general liability policy probably sees the most claims, even though the restaurant property insurance policy typically receives the largest cash claims. The building as well as the refrigerators, freezers, dining room tables, and other similar items may all be covered by this insurance policy.
The majority of the time, claims for restaurant property insurance include everything from building fires to theft. Property insurance is a need because restaurants use ovens and open flames and are extremely visible to the general public.
A coverage called workers compensation insurance is typically mandated by your state’s government. It covers medical expenses associated with work-related injuries to employees.
This is crucial for restaurants since staff members are frequently moving around, carrying items, climbing on seats, reaching up to the ceiling, and touching hot surfaces.
Beverage Liability (If You Serve Alcohol)
It’s likely that your state will require you to retain this insurance in order to keep your liquor licence if you offer any type of alcohol. This insurance shields your company from any resulting legal troubles if a customer is overserved. If you get into an accident while helping someone, it also covers you.
The majority of these claims, in our experience, are brought by overserved clients who have been involved in accidents caused by drunk drivers.
You might be held accountable for it in some places, while in others you might be named in the case and have to battle your way out. Alcohol liability is a policy that covers these kinds of incidents as well as your associated legal costs (it is occasionally included in the general liability policy).
Garagekeepers’ Responsibility (If You Have A Valet Service)
Do you have insurance to cover damage to a customer’s vehicle while it is in your care if you provide a valet service? We must look at a different policy to pay for this kind of accident because general liability insurance does not cover motor accidents. Enter the garagekeepers insurance, which provides coverage for customer vehicles under your supervision.
If your restaurant provides valet parking, you can be sure that some of the luxury vehicles that your staff parks are there. Therefore, restaurants with valet operations must have this coverage.
How much does restaurant business insurance cost?
Restaurant insurance premiums vary widely and frequently depend on the operations. A tiny submarine shop could be able to obtain all the necessary coverages for $1500 year (they probably wouldn’t require garagekeepers or liquor liability), as opposed to a major restaurant that owns a building and has kitchen operations that might cost $6000 annually.
You can receive a fast quote by clicking here if you’re interested in getting a more precise estimate.
How can I get restaurant insurance at a lower price?
Even though insurance firms must collect a specific amount in premiums, some discounts are offered to clients who pose a smaller risk than their contemporaries. The following are a few other strategies to obtain further savings on your restaurant insurance policies:
Systems for suppressing fires
What fire suppression systems are in place? is a question that insurance companies always ask when evaluating restaurants for property insurance.
The solutions include everything from sprinkler systems in the building to ANSUL systems in the kitchen. Since fire is the main issue for restaurant insurance underwriters, the more fire safeguards you have, the better your property rates will be.
Reduce Fall and Slip Risks
There are some eateries that report a few slip-and-fall claims on average each year. In general, insurance firms seek to steer clear of these claims. If you have a system in place to identify damp flooring or can demonstrate that you do, you can frequently receive a discount.
Don’t let alcohol sales exceed 50% of total sales (If Possible)
Maintaining your alcohol sales below 50% of revenue will keep you in a lower cost category, unless you are operating a fine dining restaurant. Insurance companies will start to view you as an alcohol establishment that also serves food if your sales of liquor or alcohol approach 50%. There are certain exceptions to this rule, including fine dining establishments (with pricey alcohol), breweries, distilleries, and vineyards.
Delivery of food inside the home raises insurance prices
We had to include delivery even though the majority of restaurants do not provide it because it could be a significant influence. You must acquire coverage that will cover any liability resulting from an automobile accident while a delivery is being made if your employees frequently transport food in their personal vehicles. The term “hired and non-owned auto liability” refers to this insurance.
The cost of this coverage might start at around $1500 per year on the low end when you start using personal vehicles for deliveries.
In conclusion, a crucial component of any successful restaurant is insurance. It enables you to pay a monthly premium rather of having to make preparations in case an accident hurts your company. Additionally, this insurance will assist you in handling these issues as they come up so that you may keep managing your firm.