Every industry has different insurance risks. If you are opening up a restaurant, make sure you have the right insurance coverage before you let employees or customers through your doors.

Liquor Liability

If you will be serving beer or hard alcohol in your restaurant, you need to carry liquor liability insurance.

This will cover any incident that occurs at your restaurant and involves the consumption of alcohol. For example, if two customers both drink alcohol and get into a fight, your insurance would cover any damage they cause. Or, if a customer you serves causes an accident and you are sued for allowing them to become intoxicated at your restaurant, your liquor liability insurance would settle the claim. Or, if a bartender or servers escorts a drunk patron out of your restaurant, you could get sued.

Most states require any business that serves alcohol to carry liquor liability polices.

Property Insurance

If you are renting or if you own the building your restaurant will be located in, you should make sure that you have the appropriate property insurance. Your property insurance should cover the replacement cost of all of your equipment as well as the physical structure of the building. Make sure that your policy is large to enough cover all of your kitchen equipment as well as all cosmetic changes and investments you made to the buildings.

It should also provide you with liability coverage, so if anyone is hurt on your property, you will be covered. For example, if someone were to slip and fall in your bathrooms, and sue you for damages, the liability portion of your property insurance should cover this claim.

Food Spoilage Coverage

Since making a profit depends upon your restaurant's ability to turn the food that you purchase into salable items, having a large quantity of food spoil can be devastating. Many restaurants depend on selling what is in their fridge in order to be able to afford their next order.

Food spoilage coverage is generally an endorsement that you can add onto your property insurance policy. It will cover the cost of replacing all food that was spoiled because of a power failure or an equipment failure. It will also cover the cost of replacing all your food if it becomes contaminated or recalled. This type of coverage can save your business in the event of a food spoilage and allow you to not go under.

Employee Dishonesty

Even if you screen all of your employees, you cannot predict their future actions. If an employee steels from you or commits another action that damages the well being of your restaurant, an employee dishonesty policy will help you financially through the situations. Even if you trust all of your employees, you should purchase an employee dishonesty policy.

As a restaurant, you need to make sure that your insurance covers anything that could happen to your business, from your customers getting into a fight to the food in your fridge and freezer getting spoiled. Talk to your insurance agent about getting the right coverage you need for your restaurant in order to protect your investment and livelihood. 

To learn more, contact a commercial insurance company like Hale & Associates Inc.