What Insurance Coverage Does a Restaurant Need?
There is tremendous potential liability involved when operating a restaurant. Liability varies depending on a number of factors. Some of these factors include how large your business is, the number of people you employ, the number of customers you serve, whether you serve alcohol and whether you own the property, among other things. Having the right insurance and sufficient coverage can help you avoid major problems for your restaurant.
Like every business, you should have general risk insurance. It could provide you with the ability to repair or replace damage due to fires and weather. This coverage should include exterior signs and landscaping. You should have the option of getting coverage providing replacement value of what is lost or destroyed, or its fair market value. Replacement value provides better coverage but premium costs will usually be higher.
Liability insurance can help protect you from legal claims against your business. This falls into product liability and premises liability insurance. Product liability insurance covers claims connected to the products you sell (such as food poisoning) while premises liability insurance can protect you when there are property issues (such as slip-and-fall injury lawsuits).
There is insurance coverage that may help if you need to close the restaurant temporarily by providing you with replacement income. These policies include lost income, business interruption and food spoilage insurance. Whether your restaurant is open or not, you have bills to pay. This type of insurance can help you pay your bills if you have had to shut down for a covered reason.
If you serve alcohol, you should also carry liquor liability insurance. In addition an insurer covering liability issues will ask for evidence of liquor sales. Normally if alcohol accounts for at least half of your total sales, your risk of accidents and legal claims (and your premiums) will be higher.
You are required by law to have workers compensation insurance and pay for unemployment insurance. If you own a vehicle you are also required to carry insurance for that too. You should also consider coverage for theft of property or cash, and damage due to power failures or drainage backups.
If you own or manage a restaurant in New York City and have questions about insurance, or have a coverage dispute with an insurance carrier, contact the restaurant law attorneys at the DiPasquale Law Group today by calling (646) 383-4607 so we can discuss your situation and your options.