What is it?
Who needs it?
What is restaurant insurance?
California restaurants are multifaceted businesses, and therefore present multiple risks. Restauranteurs should consider the consequences of a natural disaster, severe cases of food illness, on-site accidents and other potential incidents, and mitigate risks when appropriate. Restaurant insurance can play a pivotal role in mitigating many such risks.
Restaurant insurance is a specialized type of insurance for restaurants. Most policies come with a range of property and liability protections, which can be customized for a restaurant’s situation.
Which California businesses should get a restaurant policy?
Restaurant policies are primarily for dine-in restaurants, and almost all California dine-in establishments should have a policy. Other policies normally don’t have the same specialized protections.
For establishments that offer food service other than dine-in, a different type of commercial insurance policy is likely more suitable. There are bar insurance policies, catering insurance policies and food truck insurance policies, among others.
When a dine-in restaurant offers catering or has a food truck, the restauranteur should speak with a specialized insurance agent about coverage options. An agent that knows these policies well will be able to help restaurants find a policy solution that protects all of their operations well.
What types of restaurant liability insurance coverages are in restaurant policies?
Restaurant policies normally have several restaurant liability insurance coverages, each of which protects against a specific type of liability risk. Some of the most common restaurant liability insurance coverages are:
- General Liability Coverage: May cover common accidents, such as “slip and fall” incidents, that occur on the restaurant’s premises, including the building, patio, parking lot, and other property.
- Liquor Liability Coverage: May cover incidents involving customers who have been over-served alcohol by restaurant staff. Could cover incidents of assault, slip and fall accidents, alcohol poisoning and DUIs.
- Product Liability Coverage: May cover illnesses caused by improperly managed food or drinks that result in severe illness for customers. Could cover a single customer’s illness or multiple customers’.
- Umbrella Liability Coverage: Might provide extra protection for high-cost lawsuits exceeding the limit of another restaurant liability insurance coverage.
Why do restaurants need product liability insurance?
While products are often associated with items manufactured and sold by retailers, the food and drinks that restaurants sell may also be considered products. If any business sells products that cause harm, possibly including foods or drinks, the business might be used.
Thus, product liability coverage is an oft-recommended restaurant liability insurance coverage. An insurance agent specializing in restaurant liability can help restauranteurs assess their business’s specific need for this or any other coverage.
What property insurance protections do restaurant policies provide?
Restaurant policies also offer a variety of property coverages. A policy may come with:
- Commercial Building Coverage: Might cover buildings owned by the restaurant. Other structures might be covered as well.
- Tenants Betterment Coverage: Might cover enhancements made to leased restaurant spaces, like a dining area and the back of house.
- Commercial Contents Coverage: Might cover items in the restaurant, such as kitchen equipment, POS systems, art decor, tables, shelves and more.
- Food Contamination Coverage: Might cover specific causes of spoilage or contamination, typically protecting both ingredients and prepared foods.
What kind of auto coverage do restaurants need to have?
Restaurants that use vehicles in their routine operations normally need some form of auto insurance,
This could be an endorsement on a personal auto policy for a restauranteur’s own vehicle, or a full commercial auto policy for a restaurant-owned SUV, van or truck. Restaurants that have employees make deliveries often need hired and non-owned auto coverage, which generally provides liability protection when delivery drivers are using their own cars.
A knowledgeable insurance agent can help restaurants find auto insurance that’s right for their situation.
How can California restaurants get a restaurant insurance policy?
For help insuring a California restaurant, reach out to the independent insurance agents at Heffernan Walton Insurance. Our dedicated team will help you identify your coverage needs and find a restaurant insurance policy that protects your establishment well.