3 Insurance Extras For Your New Restaurant
If you are in the process of opening up a new restaurant, it is vitally important that you have the right type of insurance before you open your doors. Having the right type of insurance can be the difference between your business thriving or dying. Here are a few types of insurance coverage that are unique to the restaurant industry.
Food Spoilage Coverage
One of the biggest investments that you make as a restaurant owner is in the food that you purchase each day in order to serve your customers. Most restaurants maintain a very tight relationship between their cash flow and their ability to order the food they need to serve every day. If something happens unexpectedly, such as the power going out or your fridge failing, and your food spoils, that can be a devastating financially, especially if you were depending on keeping your cash flow positive by selling the food that was in your fridge.
Food spoilage coverage is an endorsement that you can add onto your general property insurance policy. If your food were to spoil, your insurance would cover the cost of replacing it all, and your cash flow would not be affected. This type of policy also works if food you purchase is recalled; it can provide you with the money you need right away to replace the food that was spoiled.
Liquor Liability
If you are serving either beer or alcohol in your restaurant, you don't want to operate without liquor liability insurance.
This type of insurance will provide you with coverage against any actions taken by customers due to drinking beverages at your establishment. If, for example, a customer gets in a fight with another customer after consuming liquor at your restaurant, and the injured party sues the restaurant, there is where your liquor liability could come into play and protect your restaurant from the lawsuit.
Employee Dishonesty
Most restaurants operate on a very small budget, and having an employee steal from you or destroy your property can be devastating. Employee dishonesty policies protect you from the action of your employees. If a server or cook were to ever steal or do something to damage your restaurant, this type of policy would ensure that the negative actions of one individual do not bring your restaurant under.
You also need to make sure that you carry property insurance, general liability insurance and employer insurance. Talk to your insurance provider about the above insurance and endorsements that could specifically protect your new restaurant.
For more information, contact Welsh Insurance Agency Inc. or a similar company.
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