The restaurant owner will need to determine what types of insurance coverage is most important to him. There are some that are required, particularly if the restaurant owner had to take a loan out to purchase the restaurant establishment.
Workers Compensation
Workers compensation is important because of the fact employees do get hurt on the job. This can be a great loss if the restaurant owner gets sued for medical bills and loss of wages. Many business owners choose to add a life insurance policy also because if the owner dies, it will be a great loss of income for the family and will incur other financial liabilities.
Income and Expense
Income and expense restaurant insurance coverage will cover the income an owner could have realized if a fire, flood or some other type of disaster happens and the restaurant has to be closed. This coverage will reimburse the restaurant owner for the daily income that is lost after a disaster.
Specific Peril
Specific peril Insurance is a coverage that is needed for comprehensive restaurant insurance coverage for losses that could occur because of floods, power outages or major storms. Any of these events could happen anywhere in the United States, though certain damages are more likely in certain areas.
Flood
Floods are common in many areas, some more than others. The restaurant owner ought to know if he is located in a flood plain. Power outages are probably the least likely, but if it happens, it will be in conjunction with a flood, a blizzard, a tornado or hurricane. Unless the restaurant owner commits to owning a large generator for back-up, all the frozen and refrigerated food that is on the property can quickly spoil.
Umbrella
Maybe one of the most important restaurant insurance coverage is that of the umbrella insurance. This coverage protects the restaurant owner in case the liability under other coverage is exceeded. Lawsuits abound in every industry. In the restaurant business, there are so many opportunities for liability to occur so the restaurant owner must be sure that his coverage is sufficient. The umbrella insurance will be the extra protection when business liability or property liability has been exceeded. It is truly an umbrella of coverage.
The umbrella policy will also help cover individuals who have fallen and are seriously injured or got food poisoning and experienced extensive medical bills.
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