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Restaurant clients can sometimes be a challenge for insurance agents. There are so many different types of eating establishments, with varying risks and exposures for each type. A standard commercial general liability (CGL) policy offers great broad coverage for any business, but contains exclusions that can leave some significant gaps in coverage. However, CGL exclusions serve their own purposes, and are designed to coordinate with other common types of coverage. Agents can work with a commercial lines brokerage to essentially “mix and match” different types of coverage and build an insurance package that comprehensively covers all of the risks of a particular client.
Property, CGL and workers’ compensation insurance are already likely already part of your standard restaurant insurance package. Here are four other common types of commercial coverage that are used to build a comprehensive insurance program.
1. Business Interruption Insurance
Without business interruption, a restaurant may not recover from having to close their doors unexpectedly due to a covered peril such as a fire or natural disaster. Most restaurants rely on a high volume of food orders each day in order to remain profitable, and being shut down for even just a few days can mean enough lost income to prevent the establishment from being able to pay their bills or their employees. Business interruption insurance helps pay fixed costs such as bills and employee paychecks until operations can be resumed.
2. Equipment Breakdown Insurance
Sometimes called mechanical breakdown insurance or boiler and machinery insurance, adding an equipment breakdown insurance policy helps to cover any losses that occur due to the mechanical or electrical breakdown of almost any type of equipment. For a restaurant, this coverage is essential to protect refrigerated cabinets, ovens, mixers and other large items of equipment in case they stop working, are damaged by a careless employee or are stolen. Equipment insurance goes beyond manufacturer warranties to include theft or deliberate damage by a third party, and can not only cover the cost of repairing or replacing the equipment, but can also include coverage for other property that was damaged as a result of said equipment breaking down.
3. Commercial Auto Insurance
If the restaurant owns a vehicle that is used for business purposes, commercial auto insurance is necessary. Even if employees use their own vehicles for business purposes, the business can still be liable. Hired or non-owned commercial auto coverage can also be added to the policy to include employees vehicles and rented or borrowed vehicles.
4. Liquor Liability Insurance
For restaurants that serve alcohol, or even allow customers to bring their own alcohol to consume, liquor liability offers protection in the event the restaurant is sued due to the actions of an inebriated customer.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.