Owning and operating a restaurant can be a fun and exciting opportunity that allows you to be your own boss. However, you do need to take steps to protect your business and its revenues from unforeseen accidents and natural disasters. The best way to do this is with the right type of restaurant insurance coverage.
Unfortunately, many small business restaurant owners look at insurance as an added expense they do not want to pay. Yet, ensuring you protect yourself and your business requires insurance, so it is a necessary evil, so to speak. Let’s take a look at some of the top reasons you should have insurance coverage for your restaurant:
- Insurance protects your assets. Assets are equipment, food, furniture, and fixtures used in your restaurant. It also protects the building if you own it.
- Insurance can be required by law. If you have employees, you are responsible to provide specific types of insurance, such as disability insurance, unemployment insurance, and worker’s compensation insurance.
- Insurance protects your customers. You can get coverage in case a customer is accidentally injured while on your property. There are also policies offered to protect against accidental food poisoning.
- Insurance provides credibility for your restaurant. People have greater confidence in restaurants that are “licensed and insured” compared to ones that are not. In fact, this is why some restaurants will include this in their marketing materials.
- Insurance protects your business against lawsuits. All it takes is one personal injury accident and, if the injured party can prove you were negligent, you could find yourself having to settle for tens of thousands of dollars or more. Liability insurance will provide protection against lawsuits and could even cover your legal fees.
- Insurance helps to protect against natural disasters. If your business is destroyed by a fire, flood, tornado, hurricane, or any other natural disaster, there is insurance coverage that pays you the income you would have earned while you rebuild your business. You can even add on protection to cover payroll expenses, so you can continue to pay your employees.
- Insurance helps keep your business running when you are injured. If you have a stroke, heart attack, or another accident that prevents you from operating your business, there is coverage available to ensure the restaurant continues operations. If you have to close your doors, it provides income until you can reopen.
- Insurance provides protection for dram shops. Dram shops are any restaurants or businesses that sell and/or serve alcoholic beverages. You need this type of coverage to protect yourself, your business, and your employees.
As you can see, there are many different reasons why insurance is beneficial. Since no one can predict the future, it is better to have the right types of insurance protecting your restaurant than risking not having coverage.
Depending on the size of the business, whether you have employees, serve alcohol, and other such factors, you may not require every type of restaurant insurance coverage. To find out what coverage would be best for your restaurant, please feel free to contact Tabak Insurance Agency at 281-769-5274 today!