Running a restaurant calls for the ability to maintain the business and foresee the prospective risks, apart from having good management. There are several risks that may incur losses due to unforeseen circumstances or catastrophes like earthquakes, hurricanes, avalanches, tornadoes; malicious damage, rioting and arson; fire breakouts due to electric short circuit – and above all, general economic recession or a public liability. When things unfortunately go wrong, restaurant insurance helps restaurant owners manage their risks and claims by providing financial support.
There are quite a few insurance products available in the market. You can choose according to your business needs, as per the property involved in the restaurant, the goods and services the restaurant offers, and the like. Insurance vendors offer a wide range of insurance products to cater the needs of prospective clients.
Focus on crucial covers
A restaurant can be considered as well protected when it takes care of the most crucial things, which have high possibility of occurrence and which can possibly lead to high financial losses.
Property insurance: The foremost requirement for a restaurant business is its premises. Owning/buying premises (building) for a restaurant entails huge investment involving a lot of risk. Even if you do not own the building, you need insurance for the inventory, mechanical equipment (of heavy price) and other aspects, if any.
Employers liability insurance: You need to have employers liability insurance if your restaurant has employees. It is your responsibility to take care of the employees when they get injured or become ill as a result of the work they do cooking, washing dishes, etc. Insurance protects your restaurant by providing the cost of compensation to a claimant and legal fees.
Public liability: Public liability insurance for restaurants covers the risk in the event an individual is wounded in the premises of a restaurant, and the person claims for compensation. It also covers the risk if the customer suffers serious reactions on consuming the food of the restaurant, which may also lead to legal claims.
Business interruption: Business interruption might be the fallout of unfavorable business conditions in the industry itself or public outrage for diverse reasons like political upheaval, economic recession; employee outrage, social riots, natural disasters like heavy rains, floods, earthquake that force temporary shutdown of business. For all this, the business would be imperiled unless supported by appropriate risk coverage.
Vehicle Liability: If you have a vehicle for your restaurant, for transport, make sure that it is insured. If the vehicle is used for transporting inventory or commuting staff members or customers, it is rational to buy insurance for the vehicle.
Without coverage- it is too risky
Running a restaurant thus involves various types of risks – financial or otherwise. The risks involved are not only intensive but also numerous. If these short-term or unexpected risks are not handled properly, they will have a deteriorating effect on the business in the long run. Hence, it is risky not to have any insurance coverage as it might prove fatal.
Get a policy through a reliable brokerage firm
Choosing appropriate insurance policy for a restaurant business is not an easy task. For this, you need to make a thorough search – online and offline. First, find the most suitable firm that can assess the needs of your business, from the standpoint of size and the risk involved. Approach a brokerage firm that can help you in tailoring the policy according to your needs. Some of the reputed brokerage firms help you get discounts on premiums. They even help you in the renewals.
To conclude, buying restaurant insurance is a rational and wise decision. Contrarily, without restaurant insurance, the restaurant is under great risk which could prove decisive in determining the fate as well as the survival of his business.