What to Look for in Your Restaurant Insurance Policy

Restaurant insurance is not like general commercial insurance. As a restaurant or eatery owner, you have unique liabilities that require a special layer of coverage. Because the restaurant industry is so dynamic and impacted by market conditions, produce suppliers and vendors, fuel prices, and more, it is imperative that you not only have coverage, but also understand what makes up a sound policy for your restaurant.

Do I Need Restaurant Insurance?

Restaurant insurance is not just for large eating establishments. It is also beneficial for small take-out eatery businesses and food carts. Here are some examples of businesses that need restaurant insurance:

• Fine dining and casual dining establishments
• Coffee shops
• Food trucks
• Fast food chains
• Micro brewery
• Pubs
• Delicatessens
• Bakeries
• Caterers

What Should I Consider with My Restaurant Insurance Policy?

1. Risks and Needs – Your risks and insurance needs as a food truck are not the same as a diner. Therefore, you need to assess your food company or restaurant’s specific needs and not purchase a one-size-fits-all policy. For example, as a food truck, you have temporary cooling and heating, which could increase your risk for food contamination and spoilage compared to a restaurant.
2. Trust in Your Broker’s Advice – Your local insurance broker at The Nowell Agency has been advising clients who own restaurants for years. We understand the restaurant industry as well as the insurance needs of each type of food establishment. Talk to us and trust that we are always looking out for your best interests.
3. Price Is Not the Only Factor – When it comes to insuring a food business, price should not be a deciding factor. While you have a bottom line to protect, remember that the cheapest insurance option may be lacking critical coverage, thus exposing your business to serious liabilities.
4. Know the Other Policies Involved – A good broker will tell you about the other policies your food business will want to carry, including general liability, property insurance, liquor liability (if you serve alcoholic beverages), workers’ compensation, off-premise coverage (if you cater or own a food truck), umbrella insurance and vehicle insurance.
5. Think About the Deductible – Most policies come with a deductible and this is the amount that you must pay out of pocket if you need to file a claim with your insurer. A high deductible could result in cheaper premiums throughout the year, but you will want to make sure you can afford that deductible if and when you need to file a claim.

At The Nowell Agency, we understand the unique needs of the restaurant industry. Whether you have a food truck, catering company or own a local eatery, we can help you find the right level of protection by tailoring a restaurant insurance policy to suit your risks, needs and budget.

Request a quote today for your restaurant insurance or meet with one of our agents today. Give us a call at a location near you.