Restaurant business insurance should include more than just commercial general liability insurance, business property insurance and workers compensation insurance. Many restaurant’s business operations include risks that need their own restaurant business insurance coverage including, but not limited to, liquor sales, food delivery, catering and special events, private label food sales and valet parking. Other restaurant’s operations require specialize restaurant business insurance because of their location or joint business operations including insurance for restaurants in a hotel, restaurants in a country club or yacht club, restaurants that operate in connection with other businesses like a bowling alleys, gas stations, and various other places. Along with specialized restaurant business insurance due to specialized operations, restaurants should also get insurance that may not be required by statute or to cover a loan, but to really protect their risks like Employment practices liability insurance for restaurant businesses, and Crime Insurance or Employee Dishonesty insurance, and Group health insurance for restaurants.
Additional Restaurant Business Insurance
Commercial Auto Insurance
Restaurant’s Business Insurance for Automobiles is not just necessary is the restaurant owns a vehicle. If the restaurant does any delivery of any kind, or may occasionally send employees out to purchase items or run errands, they need to have Non-Owned Auto Insurance. Non-owned auto insurance is insurance that covers the business for liability claims if a vehicle that is not owned by the corporation is involved in an accident. So here’s the scenario:
You send an employee to Costco to purchase olive oil. Your employee gets into an accident, your employee was at-fault, and both parties are injured. Your employee’s injuries would be covered by the restaurant’s workers compensation insurance. The damage to the employee’s vehicle would be covered by his/her personal auto insurance policy, if they have physical damage coverage. The 2nd party in the accident, would first have their injuries covered under their own Personal Injury Protection (PIP) in their personal auto insurance policy. Then they would find coverage for injuries and property damage from your employee’s personal auto insurance policy. If the damages exceed the PIP, and the liability limits of the personal auto insurance, they could then try to go after your restaurant for the damages because your employee was performing work for the restaurant at the time of the accident. This is when you would need Non-Owned Auto Insurance Coverage.
Liquor Liability Insurance for Restaurants
Liquor liability Insurance for restaurants is an absolute necessity if you have a liquor license or sell any type of liquor including beer or wine. Liquor liability insurance for restaurants covers their business against claims resulting from negligence or claims of negligence regarding the sale or distribution of alcohol that results in bodily injury or property damage. As with a restaurant’s commercial general liability insurance, restaurant business insurance agents need to make sure that they do not exclude assault and battery insurance in liquor liability insurance policies for restaurants.
Crime Insurance and Employee Dishonesty Insurance for Restaurants
Crime insurance is very important for restaurant businesses. Crime insurance or Employee dishonesty insurance provides insurance to cover employees stealing from the business. There’s usually a deductible, so the insurance is not intended to cover employees stealing a few dollars, it’s really designed to protect the business if a trusted employee steals a large amount of money, but it happens all the time.
Garagekeepers Liability Insurance for Restaurants with Valet Parking
Garagekeepers liability insurance for restaurants is only necessary when you have valet parking, or if you are charging for parking. If your restaurant uses a 3rd party for valet parking, make sure that the company has sufficient Garagekeepers Liability Insurance, and names your business as an additional insured on their policy, and also make sure that you are notified if their policy is cancelled or non-renewed.
Equipment Breakdown Insurance for Restaurants
Equipment breakdown insurance for restaurants provides insurance for a variety of equipment against mechanical breakdown, power surging and arcing, motor burnout and boiler damage. Many times restaurants can get equipment breakdown coverage to also provide coverage for food spoilage and loss of business income due to equipment breakdown. Some types of equipment that can suffer an equipment breakdown for restaurants include, but isn’t limited to, refrigerators and freezers, Heating Ventilation and Air Conditioning Units, and critical pieces of restaurant equipment. Another name for equipment breakdown business insurance for restaurants is Boiler and Machinery Insurance. This can be very confusing, especially in South Florida. There are not too many Miami restaurants that have a boiler, but they do have equipment and their restaurant business does need equipment breakdown insurance.
Business Insurance for Restaurants doing outside catering
Many restaurants offer outside catering as a part of their business. Restaurants business insurance may be sufficient to cover the risk of catering; however, not all commercial general liability insurance policies for restaurants will cover this risk. Some CGL’s will have an endorsement that limits coverage to the designated premises. The “designated premises endorsement” means that your liability insurance policy will only cover you for claims that occur at the location or locations that you put on the policy. You may also take expensive pieces of equipment to the catering sites. If that is the case, you may not have coverage on your business property insurance policy for property-in-transit or for property away from premises. To insure this property, a restaurant’s business insurance should include Inland Marine Insurance. Inland marine insurance is an equipment floater insurance that insures items specifically by schedule and/or blanket items by general description.