Do you own and operate a restaurant? We get it; you have a passion for all things food, not legalities. But it’s important to know that your business is protected. Because there will inevitably come a day when you say to yourself, “I’m so glad I have insurance for that.” I know it’s not the most glamorous topic, but it’s crucial for your peace of mind. So, what kind of insurance does a restaurant need?
To answer that, let’s first think about some of the things that might be keeping you up at night:
- What if my staff serves expired food?
- What if a drunk customer gets in a fight with another customer?
- What if there’s a grease fire?
And that’s just the beginning.
A lot goes on in a restaurant, so getting the right coverage is essential.
After a quick search, you’ve probably found a variety of policies and an overwhelming amount of information.
In this article, we’ll talk about what insurance a restaurant needs so you can focus on serving your best dining experience, not a tasteless lawsuit.
General Liability Insurance
This type of insurance can protect your restaurant against any harm you have caused someone else.
For example, if a customer were to experience injury or property damage because of your company, this could help cover those claims.
This type of insurance may also cover copyright infringement claims (marketing), damage to reputations (if an employee overheard a customer’s problems and then spread the news), and some medical bills (if someone gets sick from your food and has to go to the hospital).
Liquor Liability Insurance
You do your best to train your staff on the signs of intoxication. But people react differently to alcohol, and your staff could easily make a mistake.
This type of insurance could cover property damage, medical costs, and legal fees if you were to serve alcohol to someone that’s already intoxicated who then causes damage to something or someone.
Liquor Bond
Also, if you’re a business in New York, it’s important to note that New York requires all businesses to obtain a liquor bond in addition to a liquor license. A liquor bond is a specialized surety bond (different from a standard insurance policy).
Still not sure what this is? Our team at Lincoln Brokerage can help you obtain tavern insurance for your restaurant in Brooklyn.
Commercial Property Insurance
Commercial property insurance, also called business property insurance, can help cover the cost of repairing your restaurant.
Physical locations are susceptible to Mother Nature. If something were to happen to your restaurant, such as a fire or water damage, this type of insurance could help cover the costs of replacing the damage.
Employee Dishonesty
This coverage could help you recover revenue and inventory from employee theft. Whether it’s food, money, equipment, or supplies, theft will hurt your bottom line.
If you’ve had problems with employee theft in the past or think it might be a problem in the future, this type of coverage could be a great asset to your business.
Products Liability
What happens if your restaurant serves bad fish? Or if you cross contaminated raw food with cooked food and someone gets sick? What if nuts were accidentally included in a dish for a patron with a nut allergy?
This coverage could help cover illness or injury from allergic reactions, product defects, and more.
Workers’ Compensation
The first thing to note is that this type of coverage is required by law in New York. But regardless of requirements, this type of coverage is crucial for various reasons.
Restaurants are dangerous places to work. Employees are handling knives, ovens, oil, and more.
Imagine if one of your employees turns while holding a knife and accidentally cuts someone else on the line. Without worker’s compensation, you would be responsible for their medical bills. And if their injury is severe, you could be liable for long-term disability not to mention the fines you will receive from NYS for failure to carry this mandatory coverage.
With workers’ compensation, you can continue to run your business, and the insurance will help with the rest.
Ready to get started?
In the food industry, time is money. Don’t let your finances spoil from a lack of coverage. Protect your restaurant with the seasoned experience of your local Brooklyn Lincoln Brokerage Insurance expert.
Since 1932, we’ve been helping restauranteurs like you gain peace of mind with our excellent suite of coverage options so they can focus on growing their business.
We’ll help you do the same. Get a quote today!