Restaurants are busy places, and withal the responsibilities you have to juggle daily, it can be difficult to prepare for unforeseen events that can cause a wreck. You’ll want to ensure that your investments and progress are well protected, so you might consider looking at a reasonable restaurant insurance cost.
The Value of Restaurant Insurance
Insurance for your restaurant can protect you from various factors that could ruin your business.
What if a fire breaks in the kitchen and burns the establishment down?
What if your employee slips and injures themselves?
What if a customer gets sent to the hospital after eating contaminated food? Or what if one of your guests gets drunk and starts hurting someone else?
These are just some of the events that might happen, and their consequences could be catastrophic for your restaurant. With insurance, you have protection from dozens of liabilities.
But the question is, how much is restaurant insurance and which ones do you need?
The Different Types of Restaurant Insurance and their Costs
Purchasing Business Owners Policy will give you access to three types of coverage:
- General Liability insurance covers reputation damages, copyright lawsuits, customer accidents, and foodborne illnesses.
- Commercial Property insurance covers your entire restaurant space, including equipment and furnishings, natural disasters, utility interruption, electronic data processing, and equipment breakdown.
- Business Interruption coverage is also called business loss of income coverage. Business interruption is the insurance you need to help pay wages, operating expenses, and other factors that may cause you to close for a while.
Business Owners Policy typically costs around $500 – $4,000, depending on certain conditions.
Aside from BOP, here are other types of insurance coverage you might want to consider when creating your insurance package.
Worker’s Compensation
Ranging around $600 – $10,000 annually, worker’s compensation covers employee accidents. This type of coverage is crucial, especially when your restaurant has a history of employee injuries, and some areas may have this insurance mandated.
Liquor Liability
Does your restaurant sell alcoholic drinks? If yes, liquor liability insurance covers alcohol-related property or bodily damages that might arise. This insurance cost around $300 – $3,000 annually.
Food Spoilage and Contamination
Did a power outage ruin the food you were meant to serve? Need help paying for employee medical tests and equipment sanitation after your restaurant temporarily closes after a contamination incident? Food spoilage insurance will reimburse costs in case such events happen. This coverage costs around $1,800 annually.
Commercial Crime
Break-ins, theft, fraud, and other crimes are unpredictable. Commercial crime insurance covers any illegal acts against your restaurant and helps you recover from losses.
It doesn’t matter whether you’re a small café or a large restaurant – insurance is vital in keeping your brand and assets safe. If you’re looking for a reliable restaurant insurance provider, visit ISU Armac at their website https://www.isu-armac.com/ to get insured now.
