Understanding the Insurance Needs of Restaurants

Operating a restaurant can be rewarding, lucrative and exciting, but in these fast-paced workplaces, there are many potential risks and hazards. The daily operations and tasks of a restaurant and its employees include various circumstances that could lead to serious accidents, injuries and even lawsuits. With that in mind, your restaurant needs to have a proper insurance portfolio. restaurant owner turning open sign

The agents at RCU Insurance Services make it their duty to provide restaurants like yours in the Santa Rosa area with the necessary coverage to protect your business and your future.

What Insurance Coverages Do Restaurants Need?
With employees working with cooking equipment and perishable goods and with customers on-site, the potential for injuries or being held liable for an accident is constant. If you operate a bar, coffee shop, fast food franchise, deli, diner or any other variety of restaurant, you should consider the following insurance coverages:

General liability—If a customer is injured on your premises or as a result of your services, such as slipping on a wet floor or burning themselves, this coverage may help pay for resulting damages and medical costs.
Commercial property—This coverage protects the owned or rented property used to operate your restaurant, such as your building, equipment, furniture, signage and landscaping.
Business income—If your restaurant is forced to temporarily close or pause operations, such as following a fire, this coverage can help with various costs, including lost income, mortgage or rent payments, and employee wages.
Workers’ compensation—If one of your restaurant’s employees is injured at work or develops a work-related illness, this insurance can help cover medical costs, lost wages and disability benefits.
Employment practices liability—If an employee alleges your restaurant is an unsafe work environment or that they were treated unfairly, this coverage can help cover legal expenses and resulting damages.

Depending on your restaurant’s specific operations, it may also be necessary to augment your insurance portfolio with additional coverages, such as liquor liability, commercial auto, baker insurance and catering business insurance.

How Much Does Coverage Cost?
Given how many different types of restaurants there are, the cost of adequate insurance coverages can vary greatly. As the experts at RCU Insurance Services assess your business and its specific circumstances, the following factors will be considered:

Food/beverages served
Cooking methods used
Value and condition of your building
Size of your workforce

Get the Right Coverage
Hot surfaces, wet floors and on-site customers are all part of everyday life in the restaurant business. With the many various risks that present themselves within daily operations, restaurants must assess potential risks and address them by acquiring the right insurance portfolio.

The insurance professionals at RCU Insurance Services are here to help gauge your business’s coverage needs and tailor optimal policies. Contact us today to learn more or receive a quote.

Learn more about restaurant insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.