What are the Restaurant Insurance Requirements?

When you are opening a new restaurant, chances are you will be excited and focused on picking out the decor, the menu, your head chef, and similar decisions. Choosing the right type of insurance is likely not high on your preferred to-do list. However, insurance is a subject that no restaurant owner should ignore as there are many requirements that must be met. The following are some examples of important insurance policies for restaurants:

General liability – Patrons of restaurants can get hurt in many ways. They can slip and fall down, get burned on a hot plate, or even claim that your food made them sick. If a patron files an injury lawsuit against your restaurant, this general umbrella policy should cover it.

Property insurance – Like any other type of building, a restaurant is vulnerable to fires and other disasters that can cause damage. Property insurance should not only protect the structure but also the costly equipment in the kitchen. If you have a loan for the building or equipment, your lender will likely require you to have property insurance.

Workers’ compensation – There are many hazards when working in a restaurant and employees can get cut by knives, burned, and more. Almost every business with employees is required to carry adequate workers’ compensation insurance in case of employee injury.

Liquor liability – If you have a liquor license and sell alcoholic beverages in your restaurant, you will need to have liquor liability insurance. This policy protects your business in case a patron has too much to drink and assaults someone, injures someone in a car accident, or similar incidents take place.

Business interruption – Restaurants may need to close their doors temporarily for many reasons, including repairs, illness, and more. By closing for a period of time, you can lose significant money for spoiled food and lost profits. However, your mortgage or lease and utilities will still need to be paid. This insurance can help cover lost income during a business interruption.

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There are many risks in the restaurant industry and you always want to make sure you have the coverage needed to protect your business. Maintaining a successful restaurant is difficult enough without worrying about unexpected liability. If you are a restaurant owner or are planning to open a restaurant in New Jersey, please do not hesitate to call the D’Agostino Insurance Agency to discuss your insurance needs today. Our agents will be honest and helpful about the coverage that is right for your business.