• Running a restaurant comes with a long list of unique risks. Not only are you up against the fact that about 90% of all restaurants fail within their first year of being in business, but you also have a whole host of other risks to contend with.
  • For example, what happens if a patron has a couple of alcoholic beverages and then hurts himself or someone else? Your business could be held liable. Or what if a diner gets sick after eating at your restaurant? Again, you could be responsible. Or what if a pipe bursts and ruins all of your
    furniture and equipment? You could lose everything!
  • That’s why it’s so important for restaurant owners to insure their businesses. The right restaurant insurance policy can protect your business investment on all levels – from covering your actual building and its contents to protecting your business against lawsuits from patrons.
  • Restaurant insurance is the most important investment you can make if you own a dining establishment, but with so many different coverage options to choose from, it can be confusing trying to understand all the different types of restaurant insurance.
  • With that in mind, let’s take a look at the different types of insurance you need to have for your restaurant.

Property insurance

  • This can protect your building and its contents in the event of a fire, busted pipe, and other covered events.
  • Any business owner that has a mortgage on the business or equipment should invest in property insurance.

General liability insurance

  • A general liability policy offers coverage for things like a slip-and-fall accident, a diner who gets sick after eating your food, and so on.
  • Basically, it’s a policy that will help protect your restaurant in today’s lawsuit-driven world.

Liquor liability insurance

  • If your restaurant serves alcohol, liquor liability insurance is incredibly important.
  • Without liquor liability, your business could face an enormous lawsuit if a buzzed patron causes harm to himself or someone else. That’s the type of lawsuit that could bankrupt your business. Invest in liquor liability insurance to protect your restaurant.

Life insurance

  • Your lender may require you to carry a life insurance policy, depending on how much you borrow.
  • Even if it isn’t required, having life insurance is still smart in case something happens to you and your family is left with a restaurant to run and bills to pay.

Workers compensation insurance

  • Most states require all employers to have some type of workers compensation insurance.
  • It’s particularly important in the restaurant business as there are many hazards that can lead to employee injury – slip and fall accidents in the kitchen, grease burns, etc.

Unemployment insurance

  • This policy will provide coverage for ex-employees awarded workers compensation until they find another job.

With so many different types of restaurant insurance, it’s important that you work with a knowledgeable, experienced agent who can explain your options and put together a comprehensive policy that protects you and your business. Learn more about restaurant insurance at MyBarandRestaurant.com.