Restaurant insurance is much like business insurance. However, it's business insurance designed specifically for the restaurant industry. Every business has its own risks, so every business has its own insurance needs. That said, there are a few coverage options that are, if not specific or universal restaurants, at least more common in that industry:
- Workers Compensation Insurance. Any business with employees will want to carry workers compensation. Yet, there are also businesses that are run entirely by a single person, or that hire freelancers and contractors rather than full-time employees. To manage a restaurant, you're probably going to have full-time employees. So, you're going to need workers compensation.
- Food Contamination Insurance. All businesses will require some sort of liability coverage, but restaurants are different in that there is the very real risk of food becoming contaminated. Food contamination insurance will cover you on two fronts. First, it can act as a property policy, helping you to replace contaminated food. Since food is a perishable, consumable commodity, it's harder to insure under a standard property insurance policy than an oven or a dining table. Second, food contamination insurance will help you in the event someone gets sick from eating contaminated food served in your establishment. Costs relating to such a case can bankrupt even a thriving restaurant, so this coverage is necessary.
- Liquor Liability Insurance. A lot can go wrong when you introduce alcohol to an establishment. If you serve adult beverages, you need this coverage.
There are, of course, other concerns that are more universal to business insurance policies — such as general liability insurance, comprehensive insurance and commercial auto insurance. These will all be covered under your restaurant insurance package. Restaurant insurance is business insurance, just with a few extra features to make sure that your cafe, coffee shop or eatery is covered.
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