Whether you’re just starting your new restaurant or you’ve been in business for a long time, it’s important to make sure you are covered should those “worse-case-scenarios” that live in the back of your mind come to fruition.
And we all may have seen enough episodes of Gordon Ramsey’s “Kitchen Nightmares,” to know that owning, or opening a new restaurant is prone to disaster.
Don’t get caught without a plan, check into these 4 types of insurance coverage that restaurant owners need.
#1) Commercial Property Insurance
Protect your restaurant physical assets with commercial property insurance. This coverage can protect your business whether you own your building, lease your workspace or work from home.
Here are a few scenarios where commercial property insurance will come in handy:
- A fire that destroyed your building and the contents inside.
- A burst water pipe that damages your documents, drawings or other valuable papers.
- A storm that damaged your outdoor sign
- A customer breaks your furniture or employee breaks kitchen equipment
#2) Business Income Insurance
This coverage can help in a variety of ways including paying for continuing expenses, such as mortgage, advertising, taxes and payroll and relocation expenses and advertising fees if you have to move to a temporary site. This coverage also can work with your property policy and provide coverage for events that are out of your control such as fire, wind, hail and vandalism.
#3) Extra Expense Coverage
Extra expense insurance covers expenses that go above and beyond your normal restaurant operating costs. Depending on your type of business, extra expense insurance can sometimes provide sufficient coverage should the unthinkable happen, however be sure to consult with your insurance provider to make sure.
#4) Dependent Property Insurance
If your restaurant depends on a specific delivery of a product, then this coverage is for you. Dependent Property Insurance comes into play when:
- Your suppliers are unable to produce goods or services on which your business depends
- Your customers are unable to receive your company’s goods or services
- Companies that manufacture products for direct delivery to your customers can no longer fulfill orders
- A company in your immediate vicinity which is responsible for attracting customers to you goes out of business or can no longer attract business
Other Coverage Options
There are many other options to consider as well. For example, Employment Practices Liability, Cyber Liability and Hired/Non-Owned Auto Liability to name a few. Wondering if you have the proper business insurance for your restaurant? Contact us today to find out!