What Insurance Coverage Does Your Restaurant Need

Types of Insurance You Need For Your Restaurant

Opening a restaurant can be an exciting venture. Like any business, you want to protect your investment with business insurance Newark DE should something unforeseen happen, like a grease fire or food contamination.

First and foremost, make sure to check local and state laws for restaurant insurance coverage requirements. Most states require restaurants to carry workers’ compensation, unemployment insurance and automobile liability insurance.

Here are some other common coverage types for restaurant owners:

General Liability

A general liability policy is an essential protection from lawsuits if someone sues you after being injured on the premises or getting sick after eating at your restaurant.

Liquor Liability

If your restaurant holds a liquor license, state law may require you to carry liquor liability insurance. This coverage guards you against lawsuits if an intoxicated customer gets in an accident and injures someone or damages property.

Property Insurance

This coverage protects what you own, including furniture, kitchen equipment and the building. If you lease the space, your landlord may have property insurance, but you are still responsible for insuring the contents of the restaurant. Natural disasters like earthquakes and floods aren’t usually covered, so look into getting additional insurance for that.

Workers’ Compensation Insurance

Most states require this to protect your employees from lost wages because of illness or work accidents. Employer’s liability insurance is included in most policies to cover your legal costs in workers’ compensation lawsuits.

Food Contamination Insurance

This coverage provides peace of mind in the event your food is contaminated due to a loss of power or other unforeseen circumstances.

When deciding to take the plunge and open a restaurant, make sure to talk to a trusted insurance agent. An agent can go through the local and state law requirements on what insurance to carry and how much coverage to have.