What Insurance Coverages Does a Restaurant Need?

restaurant insurance

Are your clients with dining venues protected from disasters such as a fire or flood? Could they last if forced to shut down for weeks on end because a rebuild must occur? These events impact companies significantly, especially local spots that demand consistent revenue to remain open. If they have essential restaurant insurance plans, they could potentially survive these troubling times with more ease and less stress. 

Are Restaurants Required To Have Insurance?

Most U.S. states mandate that dining establishments possess worker’s compensation, automobile liability, and unemployment policies. Remind your clients that they legally must hold these three investments, and skipping them could leave them out of compliance and susceptible to fees, lawsuits or and closure.

The dining staff moves around quickly, juggling heavy trays and maneuvering through crowded tables. They could easily become injured or fall, leaving them out of work, and that situation leaves owners vulnerable to lawsuits unless they have worker’s compensation coverage. This plan assists with medical care and paychecks during off time. 

Many places make revenue from catering or home delivery. Accidents during work time do not fall under personal insurance and auto liability aids in repairing the company vehicle and paying off medical bills for those involved.

Sometimes management must cut jobs. While layoffs hurt, the unemployment policy gives workers a chance to receive some compensation while searching for something new. 

What Are the Most Important Types of Insurance for Restaurants?

Life throws plenty of curveballs, and dining venues particularly tend to suffer from possible setbacks. When you speak with your customers, help them understand the broader selection of restaurant insurance and how proper investment now could prove critical in the long run.

Kitchens pose a physical risk to the company. What happens if a grease fire starts and ruins the part of the building? General liability and property insurance pay for much of the rebuild and equipment replacement. Owners pay a deductible, but they gain financial support for the repairs and cleaning.

Could an appliance malfunction overnight, leaving the entire freezer full of spoiled food? Restaurants house a fortune in their refrigerators and walk-ins. This loss dramatically impacts the budget, leaving your clients struggling to replace items and remain on budget. Food contamination policies deliver the assistance required to buy new stock.

Many places sell liquor, but that choice does pose a risk. Even when following strict protocols, a patron could enjoy too much and cause harm to others or property. In turn, an injured person could sue your client’s business because their employees sold the alcohol. With this policy, restauranteurs gain coverage for legal fees and settlements. 

Owners must understand the critical need to protect their company with a range of restaurant insurance. Without it, they remain open to exposure and loss. Work with your clients to encourage them to see value in expanding their insurance plan, safeguarding against the unexpected. 

About Cochrane and Company

For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (509) 462-1148


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