Restaurants, like all businesses, need to be covered in the case of a loss. However, due to it's many exposures, restaurant owners need to make sure their investments are properly covered with the right coverages. No matter the size, the restaurant will be exposed to many perils.
The two main coverages in your restaurant policy are the General Liability and Property Coverage. However, there are many small coverages built into the policy such as business income loss and food spoilage.
Some common examples of how the General Liability would cover you are:
A customer trips and gets injured
A customer gets sick after eating at your restaurant
Your Property Coverage will protect your building, if you own it, and your business property inside the restaurant and even your signage outside. This is an important coverage because if a covered peril were to occur, you would need to replace all the furniture, plates, silverware, and anything else used in the day to day operations. When adding this all up, it can be in the hundreds of thousands to replace!
Most restaurants serve alcohol so it's vital to add Liquor Liability as well. It is important to note that this type of occurrence will not be covered under your General Liability and needs to be added as a separate coverage.
Restaurants are commonly referred to as a cash business. However, they still have a large number of credit and debit card transactions which means your customers personal information is at risk in the occurrence of a date breach. Including this coverage will protect you from customers trying to sue if their information gets stolen.
There is a high turnover rate in the hospitality business. When letting an employee go, they might feel the firing was not justified and come back with a Wrongful Termination Lawsuit. In order to help pay for the legal fees involved with this type of lawsuit, you can add Employer's Liability.
This coverage can also cover your legal fees in the event of sexual harassment allegations.
If your restaurant does any catering or delivery, you will want to add a Commercial Auto policy. The coverages will be similar to a personal auto policy.
Unfortunately, accidents to happen in workplace which result in injuries. In many states, it is legally required to hold a Workers' Comp policy based on the number of employees. This policy will cover any legal costs, medical expenses, and lost wages if an employee is injured at work.