Some people are willing to give up their corporate careers to chase their dreams. For those who love good food, they prefer to have their restaurant and hope that it will expand in just a couple of years.
Before the business becomes operational, you should consider availing of a restaurant insurance. Doing this will protect all of your investments, which costs a significant amount of money. You might want to check out several insurance policies that will meet the needs of your business. Applying for insurance is relatively easy, and you can do it online or through an agent.
To maximize the premiums that you are required, you need to be somewhat knowledgeable when it comes to insurance coverage. Here are some essential things that should take note of.
Employee Benefits
Running a restaurant requires you to hire staff in charge of cooking, preparing, and serving the food. As an employer, you are responsible for providing them with excellent benefits in the workplace. In case one of them encounters an accident in the kitchen or dining area, your insurance should cover their medical bills and loss of income.
Property Protection
One of the highest risks in running a restaurant business is an accidental fire. The damages can be very devastating, making it difficult for owners to get back on their feet. The lack of or no insurance coverage can cause the business to close down permanently. Check out the components of general liability insurance if it covers property damages.
Liability Coverage
Clients can suffer from food poisoning due to spoilage, or someone can get hurt during a brawl at the bar. Although these incidents rarely happen, you must prepare for it. Get a policy that will cover hospitalization and settlement. If not, there is a big chance that some clients might sue your business. Lawsuits can tarnish your business reputation that took years to establish plus hundreds of thousands of dollars straight out from your pocket.
Insurance Exclusions That You Should Be Fully Aware Of
It is always a smart move to avail of an extensive insurance policy for your peace of mind. However, you have to keep in mind that no matter how comprehensive the coverage is, some things are not part of the package. Here are some typical exclusions of a restaurant insurance policy.
Equipment Wear And Tear
Pans, pots, stoves, and other things will eventually incur damage because of repeated usage. The owner must replace them and not the insurance company.
Auto Insurance
This would become your liability if it were your staff that caused the accident. But if it was the client's fault due to miscalculations or poor driving skills, it should be covered by their personal auto insurance policy.
Building And Property Maintenance
It is the owner's responsibility to issue specific rules that will ensure that everything is in order. Any damages caused by natural calamities are usually not part of the insurance policy.
Insurance Is Instrumental
Write down the specific things that you are looking for and discuss them with your insurance agent. Protecting your restaurant's finances with adequate insurance policy coverage should always be a top priority.
