When assessing Restaurant Insurance costs, you also have to consider the cost of not having insurance if something goes wrong. What happens if a clumsy waiter trips and drops a plate of pasta in a patron’s designer handbag? Or, what if you didn’t store the catch of the day properly, and your customers start sending you their medical bills, minus the gratuity?
Restaurant Insurance covers your business for liability claims like these and also protects your business property from loss or damage due to a covered event, like a fire.
How much is Restaurant Insurance, you ask? Pull up a chair, and we’ll serve up details on the factors that determine Restaurant Insurance cost, the type of coverage you’ll receive, and how you can purchase Restaurant Insurance.
What factors influence Restaurant Insurance cost?
Restaurants come in all shapes and sizes. When determining your Restaurant Insurance cost, we look at the specific details of your business, such as the size of your restaurant and the type of food service you offer. Here are a few more factors that we consider:
Your ZIP code will factor into your Restaurant Insurance cost. If you’re located in a densely populated area with a high amount of foot traffic, for example, your risk level tends to be higher, and your cost will reflect that.
Number of employees
If your restaurant crew is larger, that increases the risk of an accident on your restaurant’s premises. Though this may increase your Restaurant Insurance Cost, it also makes the need for insurance even more pronounced.
A five-course meal tends to cost more than a three-course meal. Similarly, when you select a policy with a higher coverage amount, you can expect to pay a little more. Should you need to file a claim, however, you may be glad you have more coverage (just like you’d be glad you ordered the dessert).
When you purchase your policy, you will select your deductible amount. Choosing a higher deductible amount may raise your cost, but it will also mean you’ll pay less out of pocket if you need to file a claim.
Assessing fire risk is important when evaluating your overall risk. We’ll consider factors such as your proximity to a fire station, building construction materials, and fire suppression systems like sprinklers and smoke detectors. We’ll also look at whether other business tenants occupy your building.
Whether you sell alcohol
The risk of accidents tends to be higher when liquor is involved — no surprise there. If you are in the business of selling alcohol, then you’ll likely pay more for coverage.
What does Restaurant Insurance cover?
Restaurant Insurance covers you for a buffet of risks facing restaurateurs, from fires to litigious patrons. Thimble’s Restaurant Insurance is a Business Owners Policy (BOP), which combines multiple coverage types into a single policy. Here’s what’s on the prix fixe menu:
General liability insurance: If a customer sues you for medical expenses because of a food-borne illness, general liability insurance can cover the cost of their medical expenses and even provide an attorney for you.
General liability insurance covers you for non-employee third-party liabilities, such as bodily injury, property damage, and advertising injury. So if a customer slips on a wet floor, sprains their wrist, and spills wine on another patron’s expensive blouse, you may be covered for both their medical costs and the property damage.
Commercial property insurance: Minor flare-ups on the grill are pretty common, but if it escalates into a full-on kitchen fire, you may have to shut down for months while you rebuild. Commercial property insurance can cover the cost of building repairs, while business interruption insurance will cover your continued expenses and lost income until you’re able to get back in the kitchen.
Commercial property insurance also covers the contents of your building. For example, if someone steals an expensive set of cutlery your policy can cover the replacement cost.
Liquor liability insurance: If you sell alcohol, Restaurant Insurance may help cover the risk related to alcohol-related mishaps. If an inebriated customer causes bodily injury or property damage to another diner, liquor liability insurance can help cover the financial consequences.
Lower the steaks with Restaurant Insurance
You need insurance to cover your business property as well as the potentially devastating financial consequences of third-party liabilities. Thimble’s Restaurant Insurance makes it easy by combining commercial property insurance and general liability insurance in a single dish.
Plus, we like to add our own special sauce into the mix by keeping things simple for you. Take a taste test by clicking “Get a Quote” or download our app. Before the other guys even call you back, we’ll get you covered and back to working on today’s special in no time at all.
Restaurant Insurance cost FAQs
Do you need insurance to serve food?
Your state or local jurisdiction may require you to have insurance to serve food. Regardless of whether it’s mandated, however, Restaurant Insurance is essential to protect your business from the financial consequences of an accident, lawsuit, or property damage.
What other types of insurance does a restaurant need?
In addition to Restaurant Insurance, you may need commercial auto insurance if your restaurant owns a catering or delivery vehicle. Also, if you have employees, most states will require you to purchase workers’ compensation insurance to cover work-related injuries and illnesses for your crew.
I don’t own a restaurant, but I do sell and serve food. Do I need Restaurant Insurance?
If you don’t have property to insure, you can elect to purchase only general liability insurance á la carte.
How do I show proof that I have Restaurant Insurance?
Anytime you need to show proof of insurance, you can easily access your Certificate of Insurance online or in your Thimble app.
Does Restaurant Insurance cover equipment breakdowns, like if my freezer malfunctions?
You can purchase Equipment Breakdown Coverage in addition to your BOP, which covers the cost to repair or replace malfunctioning equipment and the damage that it can cause to your business. If a freezer malfunctions and ruins the produce for today’s special, Equipment Breakdown Coverage can cover the necessary repairs to the equipment.
Does Restaurant Insurance cover my equipment, such as my grill, if I cater an event at a customer’s location?
No, it does not. Restaurant Insurance only covers the equipment inside your location or within 100 feet of your premises. To cover your equipment while you’re away from your premises, you should consider Business Equipment Protection.
If I occasionally allow people to rent my restaurant for a special event, does Restaurant Insurance cover me?
You’ll be covered for such a scenario, but it’s important that you let your customers know that they should purchase event liability insurance and list you as an Additional Insured.