No matter if you own a five-star restaurant, a casual diner or a food truck, it’s important you protect yourself against a number of potential risks to your business. Beyond the usual umbrella policies and general insurance plans, here are some important coverage options you should invest in for your food-service business.
All businesses operating out of commercial buildings or similar locations should invest in property insurance that protects you from fire or other events. Although it does not cover damages from natural disasters such as earthquakes or floods, other policies can make up for these gaps.
General liability insurance is the umbrella policy that protects your business in the event someone slips and injures themselves in your restaurant or gets sick from food you made. It essentially safeguards your business in the event a customer tries to take legal action.
An unfortunate majority of new restaurants fail within the first year of being opened. While no business venture is without risk, loss of business insurance could help you recoup some of your income if you lose sales due to a specific cause. However, you can usually only expect to break even with this type of coverage.
Sometimes, through no fault of your own, something like fallen power lines or a particularly violent storm knocks out the power in your area. If food at your establishment becomes spoiled because the refrigerator or freezer went out, it can’t be served to customers. Food contamination insurance pays to replace spoiled food due to an unforeseen accident, allowing you to serve your customers without having to worry about their health or your liability.
If your restaurant sells alcohol, most states require you have a liquor liability policy as well as a liquor license. This protects the business if a customer consumes an excessive amount of alcohol, resulting in injury to themselves or others.
Protect Your Employees
Employees are the lifeblood of any growing business, so it’s important to look out for them as well. Workers’ compensation protects you if an employee is hurt at work by giving them the funds necessary to care for their injuries. They agree to not sue you for any damages received but are still able to pay for any necessary medical care.
If you have to let people go due to a struggling season or unexpected budget cuts, unemployment insurance can help your employees get back on their feet while looking for another job.
Restaurant Insurance and More in Palm Desert
Palm Desert Insurance Agency has been providing businesses and consumers with comprehensive insurance packages since 1964. Our agents are committed to helping you find the best insurance solutions for your needs at affordable rates. Contact us today for more information or to inquire about a free quote.