Did you know the average restaurant insurance claim costs around $45,600? With the hospitality industry in a delicate state after the past few years, it is more important than ever to safeguard your business. Do you know how insurance can help?
More of a necessity than a luxury, getting the right policies is crucial. Read on as we discuss restaurant insurance cost.
Why Do You Need Restaurant Insurance?
Legal business entities need insurance to operate. It helps cover them in the event of an accident or claims made against them.
Insurance will protect your money. If you have to pay out of pocket for natural disasters, fires, or other unplanned emergencies that may interrupt your business, it will payout. This means you don’t have to dip into savings to keep the business afloat.
Staff also get protected with insurance. Workers’ compensation pays their medical expenses should they be injured. You will also be covered if you are sued.
Customers are also protected in the same way. If any injury occurs on the premises or they decide to sue you, it will cover the costs.
Business Owners Policy
One effective way to save on restaurant insurance costs is to opt for a business owner’s policy (BOP). This combines three of the major insurances you need to operate. Most major companies such as PolicySweet will provide these services.
The first is general restaurant liability insurance. This is the one that will cover you should anything happen to customers. Legal proceedings for any reputation or intellectual property infringements also fall under its jurisdiction.
Commercial property insurance is the second. This covers the actual physical premises for damage and all the furniture and equipment you have stored in it.
The third is business interruption insurance. This is the policy that protects you should your ability to earn an income end. It may be through environmental factors or damage to the restaurant and will let you pay bills and wages.
Restaurant Insurance Cost
It is impossible to give an accurate prediction of the cost for restaurant insurance, as there are many factors at play. The size of the restaurant, its location, and even what is being served all play a factor. Business owner policies can be anywhere between $1000 per year to $10,000.
Liquor Liability Insurance
Liquor liability is an additional restaurant business insurance element that is not normally covered under a BOP policy. However, you can discuss adding it with most insurance providers. Policies can range from around $300 to $3000 per year.
If you serve alcohol as part of your business, then it is a must. Should you sell it to a person who goes on to cause damage, they may decide to sue you. The policy protects you from this.
Don’t forget to shop around in advance when checking your restaurant insurance cost. This gives you more options and lets you get a better deal. You may even be able to tweak certain policies with providers, lowering costs.
If this article was helpful, then we have many more. From marketing to legal frameworks, let us help your business thrive in the coming year.