When opening any kind of business, apart from the amount of capital that you will need to inject into the business, one needs to consider the type of insurance that they will need for the business. Insurance helps protect the business from liability suits and the breakdown of equipment. The case is not different if one intends to open a restaurant business. The type of insurance for your restaurant will be mainly dependent on the location of the restaurant, bank requirements in case of a loan mortgage.
The most common insurance that one needs for a restaurant include:
This is the type of insurance that is mostly a must have for most restaurants. This policy protects you in case a customer instigates a suit for a variety of reasons. They could have fallen sick after they eat at the restaurant. They could also have fallen and injured themselves while at the restaurant.
This is the type of policy that protects your property against fire and other disasters. It may cover natural disasters like earthquake and floods, but this depends from policy to policy. One will need to check with the insurance company to be sure of the policy really covers.
It is required by law that in case an employee is injured or falls sick while at the workplace, he/she should be compensated and be paid until when they get a job. Workers compensation insurance protects when the employee is injured or falls sick at work.
This type of policy is applicable for those selling liquor at their restaurants. Your license tells you that it is essential to have liquor liability policy. It covers you in case a client who has been drinking gets into an accident while on their way home and injures themselves or someone else.
Any business that makes food deliveries or has a company car used by employees will want automobile liability policy. This insures against any lawsuits that may result when the employee drives the vehicle. The cover may be available under the General Liability insurance, but it’s always advisable to confirm with the Insurance Company.
Employee Dishonesty Liability
The trend of theft, embezzlement, and fraud in businesses is on the rise, and therefore it is important to have an insurance cover to cover against employee dishonesty. It covers against an employee crime which puts both the business owner and non-employees at risk.
Loss of business cover covers one in case there is a loss of sales due to a specific reason. It helps to protect a business owner from the loss of income when a covered risk occurs. Specific peril insurance covers a business against a risk that the General Liability insurance does not cover