Our commercial team at Herlihy Insurance Group knows the food service insurance questions to ask to get you covered and has the restaurant market options to provide your business with a comprehensive and cost effective insurance program.
Whether you are a bakery, coffee shop, caterer or any type of restaurant, your food services business is unique and needs a uniquely designed insurance program to cover your business’ legal liability and your property.
Coverage
Your Property: This type of insurance protects your restaurant’s space as well as inventory, equipment and other business assets. Whether you have bought a building, built out a leased space, purchased furnishings or specialty equipment, and have inventory, you want to make certain that you insure all of these investments. You know how much you have spent to get your business up and running, now make certain that you insure that investment.
Making an inventory list of all business property is a good place to start.
General Liability: Customers, employees, and delivery people are constantly flowing in and out of your restaurant. Accidents do happen and your general liability insurance will protect you from bodily injury and property damage claims related to your restaurant operations. Slips and falls, allergic reactions, and spilled coffee are a few common claims restaurants can experience.
Liquor Liability: If your business serves alcohol it is extremely important that you add this coverage to your insurance program. Liquor liability will protect your business from bodily injury and property damage claims arising out of the servicing of alcohol. All liquor liability policies are not the same. Make certain that your policy works for your business.
Business Auto: As a restaurant owner, you may have vehicles in your business name or not. Even if there are no vehicles owned in the business name you have a business auto exposure. Whether you or your employees are delivering food, picking up supplies, going to deliver bank deposits, or running other errands for your business you will need some type of business auto insurance.
Workers Compensation: Employers in Massachusetts are required to carry workers’ compensation insurance covering their employees. This requirement applies to full time and part time employees. Workers compensations insurance provides benefits for medical and lost wage expenses to an employee when they are injured in a work related accident.
Here is the link to read more about this Massachusetts requirements for workers compensation insurance CLICK HERE
Commercial Umbrella: Umbrella Liability Insurance — sometimes called Excess Liability Insurance — works by increasing the protection limits on some of your existing liability policies. Why would you need to do that? Accidents do happen and people can get seriously injured. Adding umbrella liability to your insurance program is a cost effective way to protect your business assets from liability awards.
Cyber Liability and Data Breach: Since most restaurants accept debit and credit cards this makes restaurants a prime target for hackers. A Cyber Liability policy will provide you with important protection form the expenses of these types of incidents.
Spoilage: Pays for damaged food or stock after a mechanical breakdown.
Business Interruption: Provides payment of lost income if you are unable to operate after a covered loss.
Off Premise Power Failure: Provides payment of lost income if you are unable to open due to a loss of a power or water source for your restaurant.
Employment Practices Liability: Provides coverage for suits for wrongful termination, discrimination, sexual harassment, and failure to hire.
Wine Selling Price: Values your wine collection at selling price at the time of a loss instead of what you purchased it for.
Theft Insurance: In restaurants there are many different types of thefts that may occur and you want to be certain to review these. A theft may occur from the inside or the outside. Review that your insurance program includes coverage for employee theft and theft from a non employee. Also review specific theft limits for items such as cash, securities, credit card receipts, lottery tickets, and computer records.
If I have a fire and am forced to shut down will my loss of income be covered?
We recommend that all restaurant owners insurance program’s include loss of income for your actual loss sustained. This specific coverage may have a time and/or dollar limit. Obtain a policy that includes actual loss sustained coverage for at least 12 months.
Is liquor liability coverage included in my general liability coverage?
The standard general liability policy excludes coverage for liquor liability. If you are serving alcohol or have any alcohol on your premise (BYOB) obtain liquor liability insurance in addition to your general liability.
If my refrigeration system malfunctions and my food is spoiled will I be covered?
Coverage for the loss of goods caused by mechanical breakdown may be added to most restaurant insurance policies. It is important to specifically review the terms of the mechanical breakdown coverage and loss provisions as they differ from company to company.
Am I covered if my employee steals cash or other items from the restaurant?
Theft by employee is a common restaurant hazard. Your insurance program should include Employee Dishonesty coverage which will provide insurance for this type of loss.
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