What type of business insurance do I need for my restaurant?
Do you have the right insurance you need for your restaurant? What would happen if a fire burned down a portion of your kitchen? What if a specific ingredient your restaurant depends on is no longer available?
With the right insurance, you won’t have to worry about covering these major bumps in the road out of your own pocket.
Here are three types of restaurant insurance all restaurant owners should have:
#1) Business Income Insurance
If a natural disaster or event occurs that prevents your business from operating, or if your business is closed due to rebuilding or repairs, business income insurance will provide your restaurant and your employees with a temporary income.
Business income coverage can help:
- Replace lost income
- Pay for continuing expenses, such as your mortgage, any advertising, taxes and payroll
- Pay for relocation expenses and advertising fees if you have to move to a temporary location
- Coverage for events beyond your control such as fire, wind, hail, theft or other covered damages
#2) Extra Expense coverage
Extra expense coverage pays for additional costs that are in excess of your normal operating expenses. This includes any expenses your restaurant may rack up while being repaired or replaced after a damage by a covered loss.
For example, if your restaurant is damaged by a windstorm, extra expense coverage will help cover any unexpected expenses during the repair of your restaurant.
#3) Dependent property coverage
Does your restaurant depend on the delivery of a specific product to function? Like a daily delivery of fresh fish? Dependent property coverage comes into play when your supplier is unable to produce goods or services that your restaurant depends on.
For example, a typical property insurance policy covers damage caused by fire or explosion, dependent property coverage will provide coverage to your business if the company you depend on tragically burns down.