Serving Up the Insurance Coverage every Restaurant Needs

by Jason Hoffman, Owner and President—J. Hoffman Insurance

From the kitchen to the front of the house, restaurants have numerous exposures based on the nature of their business. As a result, it’s important that they have the necessary insurance coverage in place to ensure they would be covered correctly should an incident occur, and a claim or lawsuit result.

Property Insurance covers most physical assets, including food inventory, furnishings, cash registers, point of sale systems, files, and more.

General Liability helps defend the business against negligence claims such as bodily injury, property damage, personal injury and advertising resulting from the products that you sell and the premises you operate.

A Businessowner’s policy combines various coverages (including property and general liability) into one comprehensive and convenient policy. Some of the most important coverages that can be included are:

• Spoilage covers the loss of perishable items if a restaurant experiences a power outage, equipment breakdown, or contamination, and the food inventory goes bad.

• Business Income Coverage reimburses you for the loss of income your restaurant would incur while closed for a period of time due to a covered cause of loss such as a fire, smoke damage, lightning strike, or wind damage. Thus, preventing the business from going insolvent during the time of repairs.

• Business Income/Time Element Coverage provides normal business income coverage specific to power outage if a business cannot open.

• Employee Dishonesty Coverage protects businesses from employee theft of money.

• Equipment Breakdown provides reimbursement to repair or replace damaged machinery or equipment that has suffered a mechanical or electrical failure.

• Employment Practices Liability Insurance covers claims made by current, former, and prospective employees, as well as customers and vendors that work with your establishment.

Depending on what your restaurant offers, it might also be necessary to have the following coverages:

• Workers’ Compensation would cover an employee that becomes ill or injured on the job or because of their work. It provides medical benefits and lost wages for that employee.

• Statutory Disability Insurance covers your employees for lost wages due to injuries or illnesses while off the job. In New York, it also provides lost wages due to Paid Family Leave circumstances.

• Liquor Liability Insurance helps cover claims of bodily injury or property damage that an intoxicated person causes after a business has sold, served, or distributed liquor to them.

• Commercial Auto Insurance is a must if your restaurant owns a vehicle that is used to conduct business. It protects your business against bodily injury lawsuits and property damage if you or an employee gets into an accident in that vehicle. It also provides PIP (no fault) medical coverage for the driver and any passengers, and can also cover damage to that vehicle through collision and comprehensive coverage if needed.

• Non-Owned & Hired Auto Liability covers your liability when the personal vehicle of an owner, employee or temporary staff uses their own vehicle for business use such as running errands or picking up supplies.

To learn more about the ideal coverage for your restaurant, please reach out to our team at J. Hoffman Insurance: 845-239-4787 or Jason@jhoffmaninsurance.com.