Why every restaurant should have insurance: a guide for owners - Pie Insurance

Insurance and your restaurant 

As a restaurant owner, it’s important to protect your business from potential risks and liabilities. One of the best ways to do this is by purchasing insurance. This guide will discuss the various types of insurance that every restaurant should have and why they are important.

Protecting your business

Although we don’t like to think about the many things that can go wrong in our place of business, it’s important that we are prepared in the event that something does happen. Here are a few things your restaurant should be prepared for. 

1. 1. Property damage: Restaurants face the risk of damage to their building, equipment, and inventory from fire, theft, and other events. Insurance can help cover the cost of repairs or replacement.
   2. Liability claims: Restaurants can be held liable for injuries or illnesses suffered by customers or employees on the premises, or for damage caused by employees to third-party property. Insurance can help cover the cost of legal fees and settlement amounts.
   3. Food contamination/spoilage: Restaurants can incur losses from food that is contaminated, spoiled, or otherwise unusable. Insurance can help cover the cost of disposal and replacement of the affected food.
   4. Employee injuries/illnesses: Restaurants are responsible for providing a safe working environment for their employees. In the event of an injury or illness suffered by an employee on the job, insurance can help cover medical expenses and lost wages.

Types of insurance and how they protect your restaurant

First and foremost, every restaurant should have liability insurance. This type of insurance covers damages or injuries that may occur on your property, such as a customer slipping and falling. It can also cover damages caused by your employees, such as food poisoning or a kitchen fire. Liability insurance can provide peace of mind, knowing that your business is protected in case of a lawsuit.

Another important type of insurance for restaurants is property insurance. This covers damages to your building and contents, such as equipment and inventory, in the event of a fire, storm, or other natural disasters. It can also cover loss of income if your restaurant is forced to close due to damage.

Workers’ compensation insurance is also crucial for restaurants. This type of insurance covers medical expenses and lost wages for employees who are injured on the job. It also protects the restaurant from potential lawsuits brought by employees. You can get a workers’ comp quote with us and save up to 30% (it’s as easy as pie). 

Finally, restaurants should also consider purchasing business interruption insurance. This type of insurance covers lost income if your restaurant is forced to close due to an event covered by your property insurance. This can be especially important for small businesses that may not have the resources to survive a prolonged closure.

The gift of peace of mind 

Overall, investing in insurance is a smart move for any restaurant owner. Not only does it protect your business from potential risks and liabilities, but it also provides peace of mind knowing that your business is protected. If you’re unsure about which types of insurance are best for your restaurant, it’s a good idea to speak with an insurance agent who specializes in the restaurant industry.