3 Types of Insurance Coverage All Restaurant Owners Need
As a restaurant owner, you’re responsible for creating an environment for patrons full of great food, happy employees and a positive experience. As if that isn’t enough on your plate, you need to take care of all the day-to-day operations of running a business – including payroll, bill paying, human resources and managing your employees.
When it comes to managing your business, do you have the right protection should an accident happen or an event occur that is out of your control? A big accident with no coverage could cost you your business and your employees jobs – don’t let that happen.
Here are 3 types of insurance coverages to make sure you have:
Equipment Failure Protection
Restaurants run on food, and food can’t be made without a kitchen. What happens if your oven breaks down? Or your $5000 walk-in refrigerator stops working? What if the power goes out? When something breaks down, your business will quickly come to a stop, which means lost income.
Equipment failure protection can help pay for the cost to repair or replace the damaged equipment, the costs associated with the labor needed to repair or replace the equipment and any other expenses that you incur from the equipment outage.
There are also policies that will cover expenses if there is an equipment problem off-site that impacts your business. For example, if you sell tamales strictly through your website and rely on the website to take orders and process payment, what happens if the host of your website goes down? Causing your website to crash for a day or so while they work on getting it back up and running? Equipment breakdown coverage can help pay for the income you lost when your key supplier’s equipment breaks down.
Workers Compensation
Workers compensation provides protection and coverage for your most important assets – your employees. You rely on them to provide superb service and they reply on you to protect them should an accident happen while they are on the job. Here are a few examples of what workers compensation insurance can provide assistance for:
- an employee is injured in an auto accident while running errands for the company
- an employee gets hurt while working in the kitchen or supply room
- an employee slips and falls while serving
Civil Authority
Let’s say a small tornado is headed towards your hometown, which also happens to be the location of your family run restaurant. Local authorities call a mandatory evacuation, and 3,000 people leave the area. What happens to your restaurant? Not only do you not have any employees to work, but you also temporarily have no customers. The situation is screaming “you’re losing money”. This is where civil authority coverage comes into play.
Civil authority provides income if your business is forced to close, or if access to your restaurant is prevented because of an act of civil authority such as a mandatory evacuation or disaster.
Having the right insurance is all about protecting yourself from loss and taking care of your employees. Reach out to Ruffcorn Insurance to make sure you have the right coverage for your restaurant. There are a lot of different policies out there providing different types of coverage, your agent can help you weed through them and find the right plan for your business and budget.
