The importance of Restaurant Insurance
You have finally started that coffee shop you have always dreamed of, or you are a new franchisee ready to serve your patrons. Think you don’t need restaurant insurance? Think again!
No matter how many safety precautions you and your staff take, sometimes incidents are unavoidable. Fires, workplace injuries and even equipment breakdowns can happen when you least expect them. As we have learnt with events such as the COVID-19 pandemic, some events cannot be predicted. If you have the right specialist insurance cover in place, you can be prepared to handle anything that comes your way.
What is Restaurant Insurance and why is it different?
Restaurant insurance is a policy package that offers financial protection for your business, staff, and customers in the case of fires, accidents, lawsuits, crime, revenue loss, and more.
What other standard commercial insurance will cover you for:
- Loss of revenue due to a key tenant in your mall being closed for fire damage?
- Money cover extended to cover your drivers while they out delivering food?
- Automatically include cover for signs not on your premise?
- Automatic cover for Point of Sale systems and Point of Sale terminals (credit card machines)?
Restaurant Insurance ensures that you are covered for industry specific claims that standard commercial insurance policies may exclude.
Why is Restaurant Insurance so important?
Restaurant insurance is a no brainer because it covers the costs of emergencies big and small, and protects the continuity of your business.
Restaurants need insurance for a number of reasons:
- It protects your Cash Flow
We understand that the restaurant industry is one where cash flow is very important. You may not be able to pay out of pocket to repair damage to your restaurant caused by a fire, or to pay staff if a natural disaster causes an interruption in business. Insurance enables you to pay for repairs and recoup lost revenue, so you don’t have to deplete your personal savings or file for bankruptcy to save your business.
- It protects your good name
Accidents happens and that is why we are here for you. Be it an accident to a patron, where you are liable or be it a patron who is falsely accusing you, insurance will either help you defend the matter or find a solution to bring the matter to a positive conclusion.
- It protects your peace of mind
You cannot be there every minute of every day to protect your assets. We understand that the proper and specialist insurance will allow you as the owner/manager to lay your head down at night knowing that sudden and unforeseen events will be covered in terms of your restaurant insurance policy.
What kind of insurance does a restaurant need?
There are many factors to consider when taking out Restaurant Insurance. Here are some insurance options to consider:
Liability Insurance: This can provide cover to a variety of events such as damage to a customer’s property or if a customer is injured on-premises.
Commercial property insurance: Whether you own or rent the space, you need to be insured for things like storm damage, vandalism, and fire
Crime insurance: Provide cover for burglaries and armed robberies. Cover can also be provided for theft by employees through more specialised covers.
Commercial vehicle insurance: If your restaurant employs delivery drivers, you’ll need to cover your vehicles on a commercial vehicle insurance policy. If your restaurant uses delivery services like UberEats or Dr Delivery, you’re not responsible for providing them with insurance.
Business Interruption: This helps replace revenue lost to interruptions in business caused by things like a fire in the kitchen or a natural disaster. This cover also extends to include covers for the prevention of access and loss of a key tenant.
Equipment Breakdown: For example, if the compressor of your cold room or fridge breaks down due to mechanical breakdown, cover will be provided for the repair of replacement of the compressor.
Why use an industry experienced broker?
Not all restaurants are the same. You may run a coffee shop or you might own a fine dining establishment. Do you operate out of a food truck or are you a franchisee to a well-known restaurant chain? While generic commercial insurance might offer you the basic insurance cover to just get by, an industry experienced broker will know and understand the specific risks to your business and help structure your policy to ensure you are more than covered.
Factors such as your restaurants’ location, the type of property you operate out of, what equipment you have in your kitchen and the number of years you’ve been in business can all affect the cost of your restaurant insurance premium.
For example if you run a restaurant without a cooking apparatus, such as an ice cream parlour, your premiums may be lower, as the risk of a fire breaking out is less than that of a restaurant with a stove.
This is just one example of something that a broker knows to look out for. Brokers can also edit, combine or create the perfect restaurant insurance bundle for your business.
Speak to an Insurance Zone broker today for peace of mind knowing that if something were to happen, your business, staff, and customers would be protected: http://insurancezone.co.za/short-term-insurance-01/contact-us/
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