If you are thinking about opening a new restaurant, you need to make sure you have the insurance to protect it. When it comes to starting any new business, you need to ensure it is adequately protected with the right amount of insurance coverage.
Correctly Classify Your Business
When it comes to restaurant insurance, you need to get more specific about the type of business you are running to get the right coverage. Are you running a food truck? Are you running a catering business? Are you running a full-service bar? Are you running a pizza delivery business?
A large variety of businesses can operate under the umbrella of a restaurant and have different insurance needs and risks that they need to take into account. It is essential to adequately explain the type of business you are running to your insurance provider so they can craft the right kind of coverage for you.
Always Get Liability Insurance
When it comes to starting a business, you always need to make sure you have liability insurance. Liability insurance will protect you from claims that others can make against your business.
You need to carry a general liability policy, at least. You may want to carry some more specific liability policies depending on the type of restaurant you are running. For example, if you serve liquor, you will want a liquor liability policy. If you collect customer information online for orders, you will want a cyber liability policy.
Cover Your Employees
The one type of insurance that you will be required to carry if you have employees is workers' compensation. The exact level of coverage you need to carry varies depending on the state you live in, so check with the government to discover the type of coverage you need.
Protect Your Equipment
Running a restaurant will require you to invest in a range of specialized equipment essential to keep your business running. You are going to need to get property insurance.
Property insurance will protect you if your equipment is damaged. Property insurance for restaurants generally also provides coverage if your business is interrupted for any reason, such as an extended power outage or a fire that causes your business not to be able to operate.
Before you start your restaurant, make sure you have the right insurance in place. By law, you will need workers' compensation to cover your employees. You should always carry liability and property insurance. You may have other unique insurance needs based on the specific type of restaurant you are running. Talk to an agent about what restaurant insurance you need.