When you have the best restaurant insurance, the worries fade and allow you to focus on what matters most: Your food and customers.
Opening a restaurant is a dream many people work to make a reality. When you compare the excitement of opening a restaurant to deciding on which insurance coverage will best suit its needs, there’s no contest. However, when you consider its sole purpose being to protect your business from issues like lawsuits, loss of income or property damage, knowing exactly what you need and having the best coverage is the only to mitigate your risks of losing what you worked so hard to accomplish. Before you decide on coverage that best fits your needs, here’s everything you need to know about restaurant insurance coverage in Texas!
The Different Types of Restaurant Coverage
From broken equipment to liability lawsuits, restaurant insurance is there to protect you from a variety of problems that can arise (and not just in the kitchen). Before we break down the various forms of coverage, it’s important to remember that depending on your location, you may be required to carry certain types of insurance. In addition, if you took out a bank loan, you may also be required to purchase specific forms of insurance. Be sure to check that you are satisfying both areas before you begin restaurant insurance shopping.
Business Owners Insurance
When you open a restaurant, you are going to need some basic insurance coverage known as Business Owners Insurance. You can think of this policy as the key to building what you need! Simply put, Business Owner Insurance (also known as BOP) is an umbrella policy that will provide the following coverage options:
- Liability insurance
- Property damage
- Loss of income coverage
General Liability Insurance
Unfortunately, whether you open a restaurant or your front door, you have no idea the problems of accidents that will occur! However, if you want to reduce a few basic risks, General Liability Insurance is great to have. It provides proper protection against:
- Building damage
- Various business-related risks
Workers Compensation Insurance
Running a restaurant is hard work, which is why they need a strong staff to support the day-to-day operations. If you are employing workers to ensure your restaurant is the place to dine, it’s important to recognize you are responsible for their wellbeing. That being said, in the event of an accident, you as well need to be properly protected. Known as Workman’s Comp, when an employee is hurt on the job, this is the insurance coverage that will keep your business protected. Workers Compensation primarily covers the medical bills of an injured employee. In addition, Workers comp can also cover things like lost wages during their time spent recovering from the accident.
Food trucks are all the rage today, but that’s not the only thing that Vehicle Insurance covers. If you plan on utilizing a delivery or box truck to provide better access to your delicious creations, you’re going to need vehicle insurance. When your delivery vehicle is out and sustains damage, this is the coverage that is wise to have.
Understanding Liquor Liability
A customer came to my restaurant and had too much to drink, damage property and hurt a patron. Is that covered by my Business Owner or General Liability Insurance?
In most states its required that any establishment holding a liquor license carry liquor liability insurance as well. In Texas, while this isn’t the case, it’s almost vital to have it. If you chose not to elect to have liquor liability coverage, situations like the question above could put your business in serious jeopardy. Imagine if that same person chose to foolishly drive home and hurt themselves or someone else. Without proper coverage, you run the risk of losing your business to serious costs that come with the unfortunate aftermath.
If you are looking to serve alcohol in your restaurant, it’s important to have Texas liquor liability insurance. Why not protect your establishment from the risk connected with patron hurting themselves or others?
The Final Word on Restaurant Insurance
When you look at your investments, ranging from time to costs, why not safeguard the work you put in to make your dream a reality? Having restaurant insurance is more than having peace of mind. It’s the right move to ensure your restaurant has the foundation it needs to weather any storm, patron or unfortunate event.