If you love food, have a flair in the kitchen and want to introduce people to your skills, you may be about to open a new restaurant. Yet before you can prove that you are a culinary aficionado, you need to get your business hat on and make sure that you do not expose yourself to too many risks along the way. What do you need to know about restaurant insurance, specifically?
Every business owner must have some form of insurance to protect them from liability, but a restaurant owner does have to consider additional risks due to their specific activity.
To begin with the basics, you must have public liability insurance. This will protect you should anybody be injured when they are on your property. This could cover a trip and fall or an injury related to the food products themselves. If somebody's property is damaged and you are at fault, this type of insurance will also cover you.
Property and Assets
You will need to cover the property itself and all of your assets. You will definitely have some expensive kitchen equipment, and whether you buy it outright or lease it, you'll still have to cover it for the full value in case of fire or other damage. Look into the small print here to see what types of risk may be excluded.
Most restaurants these days will serve alcohol, and you need to cover yourself for liability here. This will protect your business should somebody who has been imbibing when on your property commits a crime or damages someone's property.
Next, you need to cover all your employees with a workers' compensation package. Should they become ill or suffer an accident in your restaurant, this will cover their costs and lost wages. It will also cover you for liability, should you need to defend a lawsuit brought on by one of your staff.
You may also be able to get coverage to protect against any loss in the event of contaminated food. If you need to throw out this food due to an extended power outage or another issue, the money won't come out of your pocket.
Also, consider getting coverage to protect you against business interruption. Should some of your key appliances be damaged or affected by a weather event, you may be able to get a payout from the insurance company.
Getting Further Advice
Remember, you are required by law to take out some of these insurance items but should, in any case, cover yourself as much as possible. Therefore, it's important to talk with an experienced broker to make sure that your new restaurant is as protected as possible.