When you run a restaurant, it’s important that you’re prepared for any potential risks that your business could face. After all, you don’t want to take any chances with your future success. That’s why it’s a good idea to have restaurant insurance and think ahead about what could go wrong. In this article, we’ll review the ins and outs of restaurant insurance and help you get started. After reading this, you’ll know everything you need to know to get started looking for restaurant insurance.
What is restaurant insurance?
Many restaurants are small, independent businesses that don’t need much in the way of comprehensive insurance. After all, your average Joe doesn’t need to worry about anything but opening a few storefronts and selling some food. But some types of businesses are too risky to be left without. These include bars, bottle-stores, beer gardens and other licensed premises. All of these require additional types of insurance to cover the potential risks of your business.
Types of Restaurant Insurance
A traditional business insurance policy covers you for all risks and uncertainties that could affect your business. It pays out when you need it most and it’s there to help you recover from a loss. But what happens when you don’t need it? What if you need to make a claim but there’s a penalty for doing so? What if you need to make a claim that requires a huge outlay, like rebuilding a kitchen after it’s been destroyed during a fire?
Things You Need Restaurant Insurance For
– Fires and natural disasters – Fires and natural disasters are the biggest risk to any business. You don’t want to be caught short because you didn’t have enough insurance to cover the damages. That’s why you need to make sure that your restaurant insurance covers fire and natural disasters.
– Breakages and stolen items – Breakages and stolen items are yet another risk that you want to cover under your restaurant insurance. You don’t want to have to pay those fees out of your own pocket, and you also don’t want to be left in the lurch when someone breaks into your restaurant.
– Lost income and wages – Lost income and wages are yet another expense that you don’t want to have to pay out of your own pocket. If you’re sick or on vacation, you want to be able to call in someone else to take over your responsibilities without worrying about the repercussions.
– Liability – Liability is the last thing you want to worry about when it comes to restaurant insurance. Finally, you want to know that you’re covered for any lawsuits that might be filed against your restaurant.
Things Restaurant Insurance Covers
– Loss of revenue and earnings – When it comes to coverage for lost income and wages, this is one of the most important things to have in your restaurant insurance policy. If you don’t have enough coverage to pay those wages, you’re going to have to foot the bill.
– Liability – The last thing you want to worry about is being sued. Make sure that your insurance policy covers you for any lawsuits filed against your business. – The cost of repairs – Sometimes, a fire doesn’t just destroy your restaurant. It also destroys the appliances that you rely on for your operations and the building itself. You want to make sure that your insurance policy covers the cost of replacing those appliances.
– Damage to buildings – Most restaurants are in buildings that are leased from a landlord. Those leases often contain conditions that can affect the operation of the building, like the condition of the roof. You want to be covered for any damage to those building components, especially if they affect the operations of your restaurant.
– Claims handling – This is one of the most important things to have in your restaurant insurance. You want to be able to file a claim if something breaks, and you want to be sure that your insurance company handles those claims efficiently and fairly.
Things Restaurant Insurance Does Not Cover
– Expenses that are outside the norm of your industry – It would be unfair to expect your insurance to cover something that most restaurants don’t do. For example, your insurance might not cover the cost of cloning your employees if they get injured.
– Cover for new build and renovation – When you build a new restaurant, you don’t want to rely on your insurance to cover the cost of that new building. That would be unfair and unethical, as it would put all new businesses at a disadvantage.
– Extraordinary or unexpected expenses – Most businesses deal with everyday expenses that you can expect to happen. But one of the biggest mistakes that you can make is to think that your restaurant insurance will cover everything.
– Business interruption – Business interruption covers the loss of profits that comes from a natural disaster or other event that disrupts your business. That includes things like power outages and a lack of customers, both of which are covered by your normal insurance coverage.
– Staff wages – When you’re hiring new employees, you want to be able to pay them out of your own pocket. That’s why you can’t rely on your restaurant insurance to cover their wages.
When you own a restaurant, it can be important to have the right business insurance in Calgary. That’s why restaurant owners should take the time to look into the different types of coverage available, as well as how much coverage they need. You should also always make sure to get the right insurance coverage for your business. This includes determining what needs to be covered and how much coverage is right for you. Further information can be found here.