If you are about to open the doors of a new restaurant, one of the last things you must consider is business insurance. And while you may have obtained general liability insurance to protect you in the event that a customer injures himself while at your premises, or becomes ill due to food your cooks made, there are other equally important insurance policies you should get. Here's a rundown of what is needed to ensure that your restaurant is fully protected.
Employment Practices Insurance
When you own your own business, one of the hazards you may face is one of your worker's suing you for sexual harassment, discrimination or a hostile work environment. An employment practices insurance policy will cover you in the event that your restaurant is sued by a former employer for any reasons related to the workplace. It will pay for a legal defence, and also pay out if you happen to lose the lawsuit.
This is a vital business insurance policy because restaurants suffer such high employee turnover, and you never know when an ex-worker with an axe to grind will file suit.
Liquor Liability Insurance
Cafe, diner and restaurant owners who are licensed to sell alcohol should buy a liquor liability policy that provides coverage in the event that a patron consumes alcohol on your premises, then causes an accident or property damage as a direct result of having had too much to drink. Many bars and restaurants that serve alcohol have been sued by people who suffered injury or loss due to a patron who drank too much and caused harm after leaving the bar or restaurant.
Liquor liability coverage provides legal defense against lawsuits, and pays up to the policy limits if a case is settled in favor of the plaintiff.
Business Income Insurance
More so than other types of businesses that can still operate online if their physical premises are damaged, a restaurant only makes money if the doors are open. That's why business income insurance is so important, because it reimburses your lost income in the event that your restaurant is shut down to weather-related damage, flooding or fire.
You can also add a rider to this policy that will pay for you to rent a new, temporary location to serve customers while your restaurant is being fixed or restored. This rider is known as 'extra expense' coverage. You should consult insurance providers to ensure you have all the bases covered.