A Business Owner’s Policy (BOP) combines common business coverages (General Liability and Property Insurance) into one convenient policy. It’s a great fit for many restaurants, especially those just starting out and provides the flexibility to add additional coverages based on your needs.
From fast food to fine dining, if you serve food then you need restaurant insurance. Restaurants are exposed to a wide variety of risks and are vulnerable to lawsuits as a result. From slip and falls to kitchen fires, things happen and proper coverage will help ensure the continued success of your business.
Restaurants nowadays come in all shapes and sizes, some are even on wheels! It’s important to discuss the unique nature of your business with an experienced insurance professional in order to tailor an insurance policy and risk strategy that is suited to your operation. For example, if you sell packaged food alongside your food service there are particular coverages you will want to consider adding to your policy. Our experienced staff can help you navigate the complexities of the insurance world to protect the business you’ve worked so hard to create.
Frequently Asked Questions
Do I need cyber insurance if I use a cloud POS\payment processor like Toast ?
YES! In just about all cases, service providers including payment processors, include language in their terms & conditions that limit or remove their liability in the event of a data breach! The rule of thumb is that if it’s your customer, then it’s your responsibility. Even though payment data is sent to, stored and maintained by a 3rd party vendor, in most cases the duty to respond to a breach may fall on you. Check out the video below for details.
Can I rent my kitchen space out to others?
First, you will want to check with your agent to ensure that any policy you purchase does not prohibit you from doing so, but assuming there is no language excluding coverage for others in your kitchen then you can certainly do so. A word to the wise, you will want (and your insurance company will likely require) any third party using your facility to carry the same or greater coverage than you, listing you as an additional insured on that policy. There are additional considerations based a few factors so it’s always best to discuss with your agent prior to opening your doors to others!
How much does restaurant insurance cost?
There is no one size fits all policy for restaurants, the cost of a policy varies based on the size and scope of your business. It’s tough to throw out a figure when it can vary so much, however a quick conversation with your agent should give you a reasonable idea of what to expect.
Key Coverages for Restaurants
Often referred to as business liability, general liability protects businesses from general claims that arise out of normal day to day operations. Coverage is considered 3rd party, meaning it protects against injuries and property damage to others. For example, if a customer falls and is injured in your establishment.
Business Interruption is often included in a BOP or can be added. It helps pay your bills, expenses and employees in the event your business is forced to temporarily close due to a covered loss. For example, if a fire damages your kitchen and you are forced to close during repairs.
If you provide alcohol to the public then you will need liquor liability. This coverage helps protect your business if an intoxicated patron causes harm or damage after your restaurant served them alcohol.