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Southern Colorado Insurance Center Blog

All You Ever Wanted to Know About Insurance

How to Adequately Insure Your Restaurant

When you run a restaurant, you need to protect it in case of emergency, but this goes further than just protecting against natural disasters. You'll also need to protect your food and other supplies, as well as your diners. Here's what you need to include in your restaurant insurance policy. 

Property Coverage 

This basic coverage insures the structure of your restaurant itself. You'll also have the option of including coverage for the contents of your restaurant, like furnishings and cooking equipment. In the event of a fire, storm, break-in or other emergency, your property coverage can come into play to pay for the cost of repairing the damages or replacing certain items. 

General Liability Coverage 

This coverage protects you if a guest is injured while dining at your establishment. For example, they might slip and fall on a wet floor in your bathroom or trip over an item on the floor. Your liability coverage can apply to their medical bills as well as any legal actions they take against your restaurant. 

Inventory Coverage 

This component of restaurant insurance coverage protects your perishable and non-perishable food inventory. If a power failure causes products to spoil, this can help cover the cost of replacing any lost food. Similarly, it may cover lost food due to a pest infestation as well. 

Liquor Liability Coverage 

If you serve alcohol in your establishment, you absolutely must include this type of coverage. It will protect you if a guest drinks too much and causes damage or injury to another guest or their property. Of course, it is also important to educate your servers on how to avoid serving alcohol to intoxicated guests. 

Product Liability Coverage 

You'll also need to protect your establishment in case a guest contracts food poisoning after eating in your restaurant or purchasing take-home products, like bottled sauces. This coverage can then be applied to their medical bills and any lawsuits that may arise as a result of the incident. 

Protect Your Restaurant Today 

To ensure your restaurant is adequately covered, reach out to the restaurant insurance experts here at Southern Colorado Insurance Center. We'll work with you to determine which aspects of coverage are essential for your eatery, and we'll match you with an insurance provider that can best meet those needs. Call us at 719-329-4441 to get started.