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Why Do You Need Commercial Insurance for Your Restaurant Business?

Starting your own restaurant is a dream with many payoffs, particularly if you know ways to stand out from competitors. Restaurants serve as important centers for hosting small social gatherings with provisions for breakfast, lunch, or dinner. Here are important points to know about insurance for your restaurant business.

What insurance does a restaurant need?

Your restaurant insurance policy can be a bundle of different policies such as general liability insurance, commercial auto insurance, and commercial property insurance. Many restaurant owners choose a Business Owners Policy (BOP) because it’s a turnkey solution that combines general liability and commercial property coverage.

Most restaurants need broader coverage than just a standard business insurance plan. You can use general liability and commercial property insurance as core components of your overall restaurant insurance, but you probably need to add coverage extensions known as endorsements.

If your restaurant serves alcohol, you will need liquor liability insurance, which pays for lawsuits involving liquor. You should also consider getting cyber liability insurance, which pays for damage caused by cyberattacks. There are various other types of endorsements to consider based on how your restaurant operates and its location.

Why should you carry restaurant insurance?

There are multiple ways in which restaurant owners can benefit from a commercial insurance policy. Restaurant insurance pays for injuries and other mishaps that occur on your property. Ultimately, if complaints go to court, the liability portion of business insurance pays for legal costs, including settlements. Before opening your shop, make sure to check restaurant insurance programs designed for small businesses in your region. Our experts at Atlas Insurance Agency can work with you to provide customized insurance solutions to address your unique risk exposures. Call us today to learn about our various coverage options for your restaurant business.

Is commercial insurance a state-mandated requirement?

The short answer is no, commercial insurance is not required, but it’s something you still need to sustain your business. Trying to cut corners by not buying adequate insurance coverage can lead to business collapse if your company is issued for a wide range of reasons.

Many new entrepreneurs assume they won’t get sued if they comply with laws and provide excellent customer service. Nonetheless, a person can trip and fall anywhere, which is what many business lawsuits are about. Lawsuits can also arise from complaints about a product or service that caused physical and mental pain.

Although you are not legally required to carry commercial insurance, it may be required in some situations, such as funding the construction of your hotel with a bank loan.

There are many exciting paths to restaurant business success. In order to get there, you need to start with good financial protection, which is what insurance provides. Contact us at Atlas Insurance Agency to learn more about getting the right insurance for your restaurant business.

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