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Does Your Restaurant Have the Right Coverage?

Everyone who has watched popular media in the last few years (or watched Gordon Ramsay tear apart a restaurant and build it back up) shouldn’t be surprised that there are some important considerations to make when running a restaurant, particularly when it comes to health and safety. Not only for the patrons of the restaurant but also for the people who are running it. They want every meal to be enjoyed and do their best to keep things running smoothly, but there are always some bumps in the road. Those bumps are precisely why having the right insurance is vital for bars and restaurants.

It doesn’t matter if you are losing money because of some faulty equipment in the kitchen; have property damage due to fire, smoke, or water; or have any other liability issues (and there are many) stemming from the day-to-day operations of the restaurant. It is essential that you have the right protections in place to keep you covered.

So what are the basics? The following are the bare minimum:

· General Liability – Meant to protect the business from general liabilities, including slip-and-fall, people potentially getting sick after eating, and other common liabilities.

· Property Insurance – Protection for the property in the event of a fire or certain other events. Often required as part of a mortgage. It is important to note that this may not cover some natural disasters such as flooding or earthquakes.

· Workers’ Compensation – Covers the business in the event that an employee is hurt at work.

· Business Income/Interruption – Maintains the business during temporary shutdowns.

· Spoilage – Used to cover the cost of replacing spoiled food in the event of a loss of power leading to spoilage in contents of freezers or walk-ins.

For restaurants that serve liquor, the addition of liquor liability insurance is typically required in many states. It is meant to help cover a business in the event of a drunk driving incident or other incidents that stem from patrons who have consumed too much alcohol.

Having the right insurance in place can mean the difference between an incident putting a bump in the road and an incident building a full roadblock that stops operations for an indefinite period of time. Think about the cost—even the ancillary cost—of your restaurant or bar being closed down for days or weeks during busy season.

For more information or to get started reviewing your liabilities, contact Nesbit Agencies at 952-941-9418 or

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