Let’s say you are a restaurateur and you are having a really bad week; first your chef cut himself while preparing, then your refrigerator died and all your cold-stored food spoiled. Then to top it off, one of your delivery kids got into an accident while making a delivery, and the insurance company is threatening to come after you.

Are you covered for all of those possibilities? What about the ones you don’t know about? What if another coverage was omitted and there was a loss? Restaurant insurance is so complicated due to the many types of restaurants and their various activities that it is easy to miss a coverage. Or if you are not with the right insurance carrier, they might not even have coverage for one of your activities.

Which types of restaurant are you? There are specific types of coverage for each type of food service:

Do you provide table service, and if so, are you a fine dining restaurant, or casual only? Are you fast food? Are you a buffet, cafeteria, smorgasbord, or some of each? If you offer takeout, do you deliver as well? If you are a bar or nightclub, that is a different category with its own set of risks and specific coverage. Country club, mall/shopping center, sandwich bar. It makes a difference as to your insurance coverage, and your workers compensation class code can be affected as well.

Depending on what features your restaurant offers, coverages can vary greatly. Full bar, or wine and beer only? Do you have entertainment, a dance floor? Do you cater? Are you renting out space for events or banquets? If you have off site events, that is yet another type of coverage. Do you have parking, and if so, do you have valet? Yours, or a subcontractor? Are they covering you in case they hurt someone or something while on your property? How is your ANSUL system? Does it cover your deep-fryer? Your fish tank could leak and cause damage, or even do damage to a customer? Do you have coat check, storage of entertainers’ equipment or other property of others? Are your fridge and freezer covered if they explode? Are you compliant with ADA, or are you vulnerable to lawsuit?

Here are some of the coverages you may require: premises liability, product liability in case your food poisons someone, property coverage for your fixtures, building coverage if you own the building or are on a triple-net lease, food spoilage coverage, equipment breakdown, non-owned auto, advertising, leased property, and workers compensation.

Do you really want to keep track of all of this yourself? Do you trust that it is all in place?

Insuring restaurants can be a minefield for an agent who has not had experience, or does not work with insurance companies that have the correct programs. Why take chances? At very least, why not review your options. Give us a call.

By Marc

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