Restaurant Insurance in Rhode Island
The pandemic was especially hard on the restaurant business. As we recover, there’s a need for new establishments to meet demand as consumers return to their normal habits of eating out and enjoying leisure time in public. Even if you are relatively new to the restaurant business, you need specific insurance policies to help protect your operation from accidents and incidents that could cause financial harm.
The agents at Cormack-Routhier Agency in Cranston, Rhode Island, understand that as a restaurant owner, you have many responsibilities. We’ll help you get the insurance coverage you need to protect your financial stability so you can concentrate on growing your business.
What Is Restaurant Insurance?
Restaurant insurance is a group of policies tailored to meet your establishment’s potential financial needs after a covered event. Your agent may start by recommending these basic coverages:
- Commercial property insurance: This coverage helps pay to replace or repair your restaurant and property damaged in a covered event like a fire, storm, or acts of vandalism.
- General liability insurance: This policy helps cover your restaurant’s legal liability if someone is injured or your property or becomes ill due to faulty products or errors.
- Business interruption insurance: This policy helps cover the loss of income resulting from an event that disrupts your restaurant’s regular operation. It may include coverage for temporary relocation.
While you can purchase each policy separately, your restaurant may be eligible to buy these basic coverages at a discount inside a business owner’s policy (BOP). Not all businesses are eligible to purchase a BOP. Your agent can help you understand whether a BOP may meet the needs of your restaurant.
How Much Insurance Does a Restaurant Need?
Restaurants face specific risks, and it’s wise to purchase insurance to help protect your operation from the adverse financial effects of events beyond your control. Your agent may recommend these policies in addition to liability, property and business interruption coverage:
- Workers’ compensation: Depending on how many people you employ, your state may require this coverage. It helps pay for medical bills and lost wages if one of your employees is injured or becomes ill in a work-related incident.
- Liquor liability: If your restaurant serves alcohol, liquor liability insurance is a must. This coverage helps pay for your restaurant’s legal liability if a customer consumes alcohol at your establishment and then causes third-party property damage or injuries.
- Food contamination insurance: This policy helps you recover costs if a power outage or equipment malfunction causes food spoilage or contamination.
- Commercial auto insurance: This coverage helps pay for your liability if you or one of your employees cause an accident resulting in third-party property damage or injuries. Your agent may recommend that you add coverage for your restaurant’s vehicle(s), including comprehensive and collision insurance.
- Umbrella insurance: This policy helps pay costs that exceed your liability policy limits after a covered incident. Umbrella insurance is generally inexpensive, considering the amount of coverage available.
How Much Does Restaurant Insurance Cost?
Your insurance premiums depend on several factors related to your restaurant:
- The square footage of your operation
- The location of your restaurant
- The age and type of building
- Number of employees
- Value of your property and equipment, including computers
- Prior claims history
- Safety equipment such as security systems
- Your company’s projected sales
Some factors that affect your insurance premiums are connected to the policies you choose:
- Your insurance policies
- Your coverage limits
- Your deductibles
Your insurance agent can help you understand the factors most likely to affect your premiums and help you get the coverage you need while sticking to your budget.
How Much Is Insurance for a Small Restaurant?
Food trucks, small cafes, coffee shops, bars, delis, franchises, caterers, pizzerias and food delivery services may need various insurance policies designed to meet the needs of a restaurant.
Smaller food operations may face different risks than large operations. In some cases, small restaurant owners may be able to save money by purchasing a BOP and tailoring the coverage to meet their needs.
Your agent can help you assess the needs of your business and get essential (and affordable) insurance coverage.
Get Restaurant Insurance Coverage Today
Contact Cormack-Routhier Agency today to learn more about how you can properly insure your restaurant. Our agents are ready to walk you through the options and help you get quotes for policies most likely to provide necessary financial protection for your restaurant.