6 Important Coverages To Include When Insuring Your Restaurant
June 7, 2022
There are some specific insurance coverages that are important to include in your restaurant insurance package. These coverages are sometimes overlooked by restaurant owners when purchasing their business insurance policy in Patchogue. They should be included as part of an overall restaurant insurance package:
1. Liquor liability coverage – The general liability policy excludes liquor liability for restaurants that sell alcohol. That means that if a customer has a drink at the bar or with dinner and has a car accident later that evening the restaurant can be held liable. This is the case even if the customer drank at another bar after leaving the restaurant. Liquor liability coverage can often be added to an insurance policy or coverage can be obtained by purchasing a separate liquor liability policy.
2. Hired and Non-owned auto coverage – An employee who uses their own vehicle in the course of your business creates a liability exposure for your business. For example, an employee may make a food delivery or drive to a store to pick up items for the restaurant and end up in a car accident. This coverage can often be added to a business insurance policy or the coverage can be obtained by purchasing a separate non-owned auto policy.
3. Food spoilage coverage - Food stored in refrigerators or freezers may spoil if cooling equipment breaks down or shuts off due to a power outage. This coverage can often be added to a business insurance policy.
4. Business income coverage - If your business is unable to operate and generate revenue due to fire damage, this insurance helps cover your lost income until you can reopen again. This can help you continue to pay your operating expenses, like payroll and monthly bills. Your business interruption coverage pays for your loss of income while you’re recovering from a covered cause of loss.
5. Sewer Backup - If sewer water backs up into your restaurant, you'll have a huge mess on your hands. Sewer backup is often not included under a typical property policy. To protect your restaurant, be sure to include sewer backup coverage in your insurance policy.
6. Extra Expense - If a fire damages your restaurant, you may be able to continue operating while repairs are made by renting other equipment or moving to a temporary location. To ensure those additional costs will be covered, you'll need to purchase extra expense coverage.
These sometimes overlooked coverages are only meant to be a part of the insurance package for your restaurant. If you would like a comprehensive review and evaluation of your current insurance policies please give our office a call.