The following will provide an overview of the types of insurance for a restaurant. The most common types of coverage are general liability, property insurance, and commercial auto. You may also choose to purchase life insurance for your restaurant. The insurance will pay off the loan if you die or become disabled, which will also protect your family. In addition to general liability insurance, you may want to take out business interruption insurance, too. Fortunately, you can get these types of insurance for a restaurant for a reasonable price.
Public liability insurance
When choosing a public liability insurance for a restaurant, there are several factors to consider. The most important one is the type of business you run. If you own a franchise, you should consider getting a General Liability policy as well. Often, restaurant owners obtain multiple insurance policies but prefer to have a single bill for all of them. This can be expensive and will not provide adequate coverage for your restaurant. Another option is to work with a captive agent, who represents one insurance company.
The premium for restaurant insurance ranges from $1,150 to $10,000 per year, and includes many coverages, including general liability, liquor liability, product liability, business interruption, and employment practice liability. A restaurant owner should have adequate general liability coverage to cover third-party injury lawsuits and accidental damage to property. In addition to these policies, the restaurant owner should have stock and contents coverage. This coverage will cover any damages or losses resulting from covered perils such as hot coffee spills, shattered glass, and broken dishes.
Commercial property insurance
There are many different types of commercial property insurance for a restaurant, and the costs can vary based on the type of business you’re running. Typically, a restaurant will need more coverage than a coffee shop, and the cost of insurance will depend on a variety of factors, including the type of food you serve, the way you cook it, and even the number of employees. Whether you own a small coffee shop or a massive tavern, there is a commercial property insurance policy that will provide you with the coverage you need.
If you own a small restaurant, you may find that the policies you purchase from NEXT are perfect. They are tailored to meet the needs of a small business, and you can bundle multiple policies for a 10% discount. Moreover, you can obtain your insurance certificate online and complete the entire application process online. Hiscox is another good option if you want to cover large amounts of money. Although most insurance companies will offer coverage of $1 million and up, you should check to make sure that you don’t have to pay more than you can afford.
Business interruption insurance
Insurers often deny claims due to the vague language of their policies. The wording of a restaurant business interruption policy may not explicitly mention COVID-19. Even so, lawyers can find loopholes. While most insurance policies don’t mention this virus specifically, many restaurant owners are still trying to make their claims. Sokol predicts that many businesses will be denied compensation due to the virus. But the government should step in to compensate businesses.
For example, a restaurant that relies on a two-lane road to bring in customers will lose revenue if the road is closed for three days. It will have to close its doors, causing a loss in revenue. Fortunately, a business interruption insurance policy can help the restaurant resume operations as soon as possible. The coverage is available as an endorsement to the main CGL policy and is generally priced based on the amount of income lost.