How to Get Restaurant Liability Insurance That's Suitable for Your Business
- 1). The proper restaurant liability insurance depends on the type of business. Coffee shops, sandwich shops, fast food joint, fine dining or family style restaurants all fall in the restaurant category but each need a different package of restaurant liability insurance. Knowing what you need before talking to an agent is especially important in getting the best deal for the best price.
- 2). Fine dining or family style restaurants are larger operations that are more capital intensive than other types of restaurants. They would need comprehensive restaurant liability insurance to properly cover themselves. Liquor liability insurance is a must because most of these types of restaurant provide alcohol on their premises. This type of insurance is often sold separately. However, you can purchase a commercial restaurant insurance protection and sometimes it includes the liquor coverage. It is a good insurance policy for big restaurant to get because it covers a lot of different types of scenario that is likely to happen at a large place. Property insurance is a must when you own the land on which the restaurant is build. It can protect you against natural and man-made disasters which would otherwise ruin your operation.
- 3). Smaller restaurants that are primarily for non-alcoholic drinks, coffee and sandwich would not need expensive comprehensive insurance recommended for bigger operations. Liquor insurance does not apply here because no alcohol would be served at these places. A commercial restaurant insurance protection should be purchased and include things that you would actually need. Smaller joints would not need property insurance because space is rented.
- 4). Worker compensation insurance is must for any restaurant that hires employees. Employees that are hurt on the job which can occur often for a restaurant due to hectic and busy works will be covered under this insurance. It will easily save you from going out of business due to injured personnel.
- 5). One of the mistakes that owners make with their restaurant liability insurance is the amount at which it covers. If it's not sufficient, they will go after your own personal assets, seize inheritance, and future income when necessary. How much is enough? Umbrella insurance is especially good for those with big restaurants and lots of personal assets. Although it is expensive, it can give a peace of mind because it is the last insurance that kicks in when everything else fails.
- 6). As it is with any type of insurance shopping, comparing between the different companies is very important to get the best deal and coverage. Contact several agents available in your area and ask each for a meeting. During the meeting, talk about your restaurant type and ask about their recommendations on restaurant liability insurance and quotes. After several meetings with agents with different companies, pick the one that offers the best package at the best price.
Source...