Common restaurant insurance mistakes and how to avoid them - Pie Insurance

Your restaurant’s insurance needs

As a restaurant owner, it’s important to have the right insurance in place to protect your business from potential risks. However, many restaurant owners make mistakes when it comes to their insurance that can leave them underinsured or with gaps in coverage. Let’s take a look at some common restaurant insurance mistakes and how to avoid them.

Mistakes to avoid

1. Not having enough liability coverage: One of the most common mistakes restaurant owners make is not having enough liability coverage. General liability insurance is designed to protect your business from claims of bodily injury or property damage that may occur on your restaurant’s property. However, many restaurant owners underestimate the amount of coverage they need, which can leave them at risk if a major claim is made. To avoid this mistake, it’s important to work with an insurance agent to determine the right amount of coverage for your specific needs.
2. Not having property insurance: Another common mistake is not having property insurance. This type of insurance provides protection for your restaurant’s physical assets, such as equipment and building. In the event of a fire or other natural disaster, property insurance can help cover the cost of repairs or replacement. Many restaurant owners assume that their landlord’s insurance will cover their property, but this is not always the case. Make sure you have the coverage you need to protect your assets.
3. Not having business interruption insurance: Business interruption insurance provides protection for your restaurant’s income in the event of a covered loss. For example, if your restaurant is forced to close due to a natural disaster, business interruption insurance can help cover the cost of lost income during the closure. Many restaurant owners don’t think about this type of coverage, assuming that their general liability insurance will cover it. However, it’s important to have separate coverage for business interruption to ensure you are fully protected.
4. Not reviewing your coverage regularly: Another mistake restaurant owners make is not reviewing their coverage regularly. As your business grows and changes, your insurance needs may change as well. For example, if you add a liquor license or expand your outdoor seating, you’ll want to make sure your coverage reflects these changes. It’s important to review your coverage annually and update it as needed.
5. Not working with an experienced insurance agent: Finally, one of the most common mistakes restaurant owners make is not working with an experienced insurance agent. An experienced agent can help you find the right coverage for your specific needs and help you navigate the claims process if something does happen. They can also help you avoid common mistakes and ensure that you have the coverage you need to protect your business.

Make sure you’re covered

As a restaurant owner, it’s important to have the right insurance in place to protect your business from potential risks. However, many restaurant owners make mistakes that can leave them underinsured or with gaps in coverage. By understanding and avoiding these common mistakes, you can ensure that your restaurant is fully protected. Be sure to have enough liability coverage, property insurance, and business interruption insurance— review your coverage regularly and work with an experienced insurance agent. Need workers’ comp insurance for your restaurant? Get a quote in minutes and save up to 30%. It’s as easy as pie.