Let me set the scene. You’re opening a restaurant and you found the perfect location in Philadelphia. Before you move forward with the red tape, forms and licenses, you had better do your homework.
Restaurant insurance can be specifically difficult to understand. If your insurance company doesn’t specialize in restaurant insurance, you could be missing vital coverage and, even more likely, paying more than you need to by not packaging the policies together.
You can’t cut corners in the restaurant industry, and your insurance is no exception. Bad things happen to good restaurants, equipment breaks, customers slip and fall and anything is possible.
There are two types of restaurants, those who serve alcohol which is regulated by the city and those who do not which are considered BYOB’s. Both of which require different coverage. In addition, your bank loans and mortgage will require their own sets of insurance policies. Dizzy yet?
Let’s discuss the various policies you’ll need.
Property Insurance – Property Insurance protects against fires and other events. If you have a mortgage, it’s required by your lending institution.
Liquor Liability – Is your restaurant going to sell liquor? You’ll need Liquor Liability insurance. This will protect you if a customer drinks too much and drives drunk, then hurts themselves or someone else.
General Liability is an umbrella policy that protects you in the event that someone gets hurt or sick in your restaurant, even if it isn’t your fault. Automobile Liability – Does your company have a vehicle? You should have general liability on it, don’t take any chances here, and talk to your agent about what level best fits your restaurant.
Workers Compensation – Pennsylvania requires workers compensation insurance to protect you in the event that an employee is hurt during their shift.
Unemployment Insurance – Covers employees who no longer work for you until they find a new job.
Food Contamination Insurance – Can you afford to lose all of the food in your walk-in freezer? This will cover you if the power goes out or your food gets contaminated.
Specific Peril Insurance – Protect from floods, hurricanes and other natural disasters that your general liability policy doesn’t cover.
I can’t stress how important it is to choose an insurance agent experienced in restaurant insurance. They will know the myriad of state and local laws and they’re the only ones that can look at the aspects of your restaurant and know exactly what you need. For more information, contact us at Nigro Insurance Agency. We know restaurant insurance and we can package it in a way that lowers your bottom line because we have direct access to over 40 carriers for personal and commercial insurance. Call us today: 215-278-9633Google+