It’s not always going to be smooth in your restaurant. Whether you operate a restaurant or not, you need restaurant insurance. Accidents, fires, thefts, lawsuits, revenue losses, and other adverse events can threaten your business and employees’ and customers’ security. Regardless of whether it’s a specific insurance policy or a collection of plans, restaurant insurance is an insurance option that can help cover these risks. This insurance is not a specific policy. A food and beverage insurance policy protect businesses engaged in food and beverage service, such as cafes/coffee shops, bars, fast food restaurants, fine dining establishments, and full-service restaurants. You can learn more about restaurant insurance in the following sections.
Insurance for restaurant businesses
As mentioned earlier, restaurant insurance is not exclusive to restaurants. As well as catering trucks, nightclubs, and other establishments that provide food, beverage, and refreshments are also included in the category of restaurant insurance. This category includes cafeterias, pizza shops, ice cream shops, and catering trucks. Owners and managers of food service establishments can project or estimate the costs of restaurant insurance they will include within their expenses, depending on the nature of their operation. It is more expensive for a business owner to purchase insurance if the coverage is more extensive. As part of your insurance calculation, ensure that you include a minimum of property, general liability, business interruption, and product liability insurance.
Why is Restaurant Insurance needed?
Continuity and stability are threats to businesses in the hospitality industry, as I mentioned earlier. Statistics indicate that between 2010 and 2014, nearly 7500 fires occurred in restaurants. Electrical distribution, lighting, and heating equipment account for 61% of all restaurant fires and 38% of direct property damage. Cooking equipment accounts for 61% of all restaurant fires.
As you can see, the consequences of something going wrong can be high. Employees suing for injuries on the job or customers complaining about being hurt on business premises can significantly impact the business. Delivery vehicles and various kinds of business equipment need to be insured. Delivery drivers must be protected when they are involved in road accidents and malfunctioning machines or equipment.