What Does Restaurant Insurance Cover and Not Cover?

Running a restaurant is a rewarding yet challenging endeavor with numerous risks and uncertainties. From unexpected accidents to natural disasters, the potential for financial loss is significant. This is where restaurant insurance comes into play, offering a financial safety net to protect your business from various perils. Understanding what restaurant insurance covers and what it does not is crucial for ensuring comprehensive protection and peace of mind.

What Restaurant Insurance Covers

Restaurant insurance typically includes the following coverage options:

• General liability insurance—This can help cover legal fees, settlements and medical expenses if a customer is injured on your premises or claims that your food caused them to become ill.
• Commercial property insurance—This can help financially cover damage to your restaurant’s physical assets, such as the building, kitchen equipment and furniture, due to events like fire, theft or vandalism.
• Business interruption insurance—If your restaurant needs to close temporarily due to a covered event, such as a fire, this insurance can help compensate for lost income and cover expenses like rent and payroll during the closure.
• Workers’ compensation insurance—In most locations, this is a requirement if you have employees. It can help cover medical expenses and lost wages for employees who are injured or become ill due to their work responsibilities.
• Liquor liability insurance—If your restaurant serves alcohol, this coverage can be essential. It can financially protect your business if a customer becomes intoxicated and causes injury or property damage.
• Commercial crime insurance—This can help financially cover losses from crimes such as burglary, robbery, forgery and employee theft.

What Restaurant Insurance Does Not Cover

Restaurant insurance typically excludes the following:

• Intentional acts—Intentional damage or injury caused by the business owner or employees is generally excluded from coverage.
• Employee dishonesty—While commercial crime insurance covers some aspects, not all policies include employee theft or fraud unless specifically added.
• Wear and tear—Most property insurance policies do not cover regular maintenance issues and wear and tear of equipment.
• Floods and earthquakes—Standard property insurance typically does not cover natural disasters like floods and earthquakes. Separate policies are needed for these events.

Learn More

For restaurant insurance near you, contact Axcess Insurance today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.