As a restaurant owner, there are several types of insurance policies you should consider to properly protect your business.
Types of Insurance Policies Restaurants Need
General Liability Insurance
This covers you in case a customer slips and falls or gets food poisoning. It protects against lawsuits related to bodily injury or property damage. For most restaurants, $1 million in coverage is a good start, but you may need more depending on your location and size.
Property Insurance
This protects the physical building and assets like equipment, furnishings, and inventory in case of events like fire, theft, or natural disasters. Make sure you have enough coverage to rebuild in a worst-case scenario.
Business Interruption Insurance
This covers lost income if your business is shut down due to a covered event like a fire or natural disaster. It can help pay operating expenses and replace lost profits during the time you're closed. Liquor Liability Insurance.
Workers' Compensation Insurance
This provides medical care and lost wage benefits for employees who suffer job-related injuries or illnesses. In most places, workers' comp is required by law for any non-owner employees.
Shopping around at different insurance companies can help you find the best deals. Compare quotes from multiple providers to get affordable yet comprehensive coverage so you can operate your restaurant with confidence.
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How to Get Accurate Restaurant Insurance Quotes
Follow these tips to get the most accurate quotes and find a policy that meets your needs:
Provide Details About Your Business
Be prepared to share information about your restaurant’s operations, like:
Type of cuisine - Italian, Asian fusion, bakery, etc. The risks and coverage needs vary by cuisine.
Seating capacity - More seats typically mean higher liability risks and costs.
Annual revenue - Insurers use this to determine proper coverage limits. Give estimates if you’re a new restaurant.
Location - Costs differ in high-crime vs low-crime areas. Share the building type too, like freestanding or strip mall.
Number of employees - Workers’ compensation premiums are based partly on payroll and staff size.
Compare Quotes From Multiple Providers
Don’t just get one or two quotes. Compare at least three to five. Check independent agents and direct insurers. Some restaurant specialists may offer lower rates than generalists. Compare both price and coverage. The cheapest policy isn’t always the best deal.
Consider Bundling With Other Policies
Bundle your restaurant insurance with other business policies you have like business owner’s insurance or property insurance. Bundling multiple policies together can qualify you for a multi-policy discount, which saves you money on total premiums.
Ask About Discounts
Inquire about common discounts for restaurants like:
Alarm or sprinkler systems - For lower fire and theft premiums.
Liquor liability training - If you serve alcohol, staff with proper training can reduce costs.
New restaurant - Some insurers offer discounts for the first year.
Loyalty - You may get a lower rate for staying with the same insurer for multiple years.
Comparing multiple quotes and negotiating the best discounts are key to finding restaurant insurance that won’t break the bank. With some persistence, you can get the necessary coverage at a fair price.
READ ALSO: General and professional liability insurance
Tips for Negotiating the Best Restaurant Insurance Rates
To get the best deal on your restaurant insurance, you need to go in prepared. Do some research on rates from different companies to determine a good range for your type of restaurant.
Then, put on your negotiating hat and get ready to work with companies to find a policy that fits your needs at a price you can afford.
Compare Quotes from Multiple Providers
Don’t just go with the first quote you receive. Compare rates from at least 3-4 top insurance companies that specialize in restaurant coverage.
Ask About Discounts
Inquire about any discounts offered, like bundling multiple policies together or discounts for long-time customers. You may also get a lower premium if you have security measures in place like a fire sprinkler system or alarm. Every little bit helps.
Consider Raising Your Deductibles
If you can afford to pay higher deductibles in the event of a claim, your premiums will be lower. See how much you can increase your deductibles while still being able to pay out of pocket if needed.
Bundle and Save
Bundle your restaurant insurance with other policies like commercial property insurance or business owner’s insurance. Bundling multiple policies together can qualify you for a multi-policy discount of 10-20% or more.
Negotiate the Best Deal
Once you have quotes from different companies, pick your favorite and see if they'll match or beat the best rate you were offered. Be willing to negotiate to get the most coverage for your budget.
Conclusion
With some smart shopping and clever negotiating, you can knock down your restaurant insurance premiums and keep more money in your own pocket each month.
