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Running a restaurant is already a challenging endeavor, and thinking through the key insurance coverages you may need can add to the stress. With so many coverages available, it can be confusing figuring out which coverages your restaurant could benefit from.

Whether you’re operating a fine dining restaurant, a cozy café, an energetic bar or a fast-paced eatery, it is crucial to have insurance that will cover your needs. The right coverage protects not just your business, but also you, your employees and your customers. Thankfully, at Auto-Owners, we offer a variety of coverages designed to keep your business running smoothly.

 

What is restaurant insurance, and do you actually need it?

Restaurant insurance acts as a safety net for you, your customers and your operation. It protects your business from all sorts of potential problems, such as accidents within the workplace, damage to your property, food spoilage and other work-related issues that can potentially occur at your business. Whether you are a new or experienced restaurateur, you should assess your insurance needs. Not only is this insurance legally required, but it could save your business from expensive lawsuits or damages that could severely impact your finances.

 

What are some commercial coverages that apply to restaurants?

There is an abundance of different coverages that are required and suggested for restaurant owners. Here are a few essentials:

Building/Personal Property Coverage

• Protection for your building itself and everything inside it, including equipment, inventory and other physical assets.

Workers Compensation

• Provides coverage for employees who have experienced work-related injuries or illnesses.

Premises Liability

• As we all know, sometimes accidents can happen. This insurance helps protect you, your employees and your customers if an injury were to occur on your property.

Liquor Liability

• If your restaurant serves any type of alcohol, this coverage is crucial. It helps protect your business from legal fees, settlements and medical costs if an intoxicated customer causes injury or property damage. Without this coverage, your business could face significant financial risk and potential long-term consequences.

 

What are some optional coverages that Auto-Owners offers?

Although there are many coverages that are required for your business, there are also some that are highly recommended:

Cyber Liability

• Our Cyber Suite coverage helps protect the electronic data your restaurant handles – including credit card information and other personal details. It safeguards your business against common cyberthreats and potential data breaches.

Brewery and Winery Plus

• This insurance package includes a variety of different coverages that provides more specialized protection than standard liquor liability insurance. It often includes:

• Beverage contamination
• Processing errors
• Tank collapse/leakage
• Product withdrawal

 

Read more about required and additional coverages: Business Insurance (Restaurant)

What are some common misconceptions about restaurant coverages? 

Accidentally falling for these myths can lead to serious gaps in your coverage. Here are a few to watch out for:

• General liability covers everything.

General liability is a solid foundation – it covers a wide range of risks, but not everything. A good way to look at general liability is as a base level coverage. You’ll still want to get specific coverages like workers compensation and liquor liability to ensure you’re ready for anything that may happen.

• Staff and customers are like family, so a lawsuit would never happen.

It’s natural to trust those around you, but even close relationships can change. Disagreements, misunderstandings or unexpected incidents can lead to lawsuits when you least expect them. The right liability coverage helps ensure your business is protected, no matter what.

• Small businesses don’t need to worry about cyberattacks.

Does your business accept credit card payments? Use a website? Post on social media? If you answered yes to any of these, then your business could be at risk. Small businesses are often targeted by cybercriminals because many times, they have fewer security measures in place.

Running a restaurant comes with enough challenges – your insurance shouldn’t be one of them. With the right coverages from Auto-Owners in place, you can focus on delivering great food and service while knowing you’re protected. Contact your local independent agent to discuss coverage options tailored to your unique restaurant operation.

Disclaimer: This article is not expert advice. The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Discounts may not be available in all states. Limitations and conditions may apply. Premiums will be based on benefits chosen. Please check with your local Independent Auto-Owners Insurance Agent for details.

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