When it comes to Business Insurance, Restaurant Insurance can be a little confusing at times. If you are renting, you probably have your landlord telling you what you need in the lease agreement. It would be nice to know what it all means, right? If you are opening your first restaurant, or have been in the industry for several years, it would be nice to see what your options are, right? Given all the perilous exposures, I'm sure you know that some kind of insurance is wise to have in place. Hopefully this post will help give you a better understanding of what's out there when it comes to Restaurant Insurance. So what types of Insurance should you consider? Below are the ones I would consider at the very minimum.

General Liability: If a customer is injured at the restaurant, maybe they slip and fall or a server spills a hot plate on a customer, General Liability can provide you coverage. Product Liability, typically included in the General Liability coverage, would provide coverage if a customer got sick from eating at your establishment. Most landlords require their tenants to have this coverage. It’s also pretty common for them to request to be listed as an Additional Insured on the policy. 

Liquor Liability: If you serve alcohol, you should consider this coverage. For example, a server provides alcohol to an intoxicated customer and they drive away and injure someone, you could be held liable, even if you only served them one drink. Liquor Liability Coverage can help with your legal costs, court fees, and civil damages resulting from the sale of liquor at your restaurant.

Property: Think about all the equipment, furniture, stock and computers you have. Property coverage can provide coverage for fire, theft, smoke, vandalism and other perils. Did spend money on a build out for the restaurant? Tenant Improvements and Betterments can be insured as well. If you own the building, building insurance is a must, and is probably going to be required by the bank. When reviewing your policy, it's also always a good idea to look at your property deductible. 

Business Income: As the name implies, it provides income if a restaurant is temporarily out of business due to a covered peril. Maybe it's a fire, smoke, or even vandalism, think about all the costs you have even though you don't have revenues coming in. Rent, loan payments, wages, taxes can all continue to accrue during a closure. This coverage can be a dollar amount or it can be insured Actual Loss Sustained. Make sure to ask about the waiting period for this coverage. 

Food Contamination Insurance: Food could be mishandled or food could arrive at your restaurant carrying a bacteria and make your customers sick. Food Contamination Insurance provides coverage for lost income if your operations are suspended by a public health authority due to the discovery of food contamination.

Temperature Change or Spoilage Coverage: Your restaurant depends on proper food storage, but your refrigeration system may suffer a mechanical breakdown, which may cause your perishable products to spoil. This coverage helps cover the cost to replace the lost stock.

Workers Compensation: Employees are around knives, stoves, ovens, wet floors and many more perils on a daily basis. If your employee is injured, Workers Compensation can offer the protection you need. What if that employee decides to sue you? Yes, Workers Compensation will respond to that as well.  

Data Breach: Restaurants collect sensitive employee and customer information that could include bank account, credit card, and in some cases Social Security numbers. If that information is lost or stolen, it could leave your restaurant business open to lawsuits and also damage your reputation. Data Breach Coverage helps pay the costs of notifying impacted individuals and managing public relations if information is lost or stolen from your restaurant. 

Sign Coverage: This one always seems to get overlooked. Here in the Austin area, we can have serious winds at times, so I've had some experience with signs falling. Some policies will include coverage, but only up to $5,000. Sometimes this is not enough. How many signs do you have? What is the cost? Make sure you review your policy limits and increase coverage if needed. 

Also, if you hire a 3rd party for your deliveries, you want to make sure they are insured by providing you with a certificate of Insurance. If you are doing the deliveries, you will need to discuss Business Auto options with your agent. 

As far as Business Insurance goes, if you own an eating establishment, Restaurant Insurance is a must. There are so many perils when it comes to restaurants, from slip and falls to employee injury. And if you serve beer, wine, and alcohol, the perils continue to mount. Based on my experience as an insurance agent, I’ve seen a lot of claims in this industry. Could it be the age and experience of the average employee or just that it’s a breeding ground for perils, I’m not sure. Perhaps a little of both. Let me know if you have any questions. This is an industry I am passionate about and have a lot of experience in. I am always happy to help and would love the opportunity to come visit with you at your restaurant. Restaurant application below. 

​Jason Matison
Commercial Insurance Agent
​Austin, Texas

Life Insurance for your business probably isn't something you've given much thought. You and your business partner(s) have built a business and are enjoying all the benefits of being an owner. You're both healthy and life insurance is the last thing on your mind, but it's something you should pause to think about. Here's the deal, If your business partner passes away, are you prepared to buy out his/her spouse or family? If not, are you prepared to bring the spouse or family member on as partner? Maybe the answer is yes and don't need a Business Life Insurance Policy. If not, you should consider one. I am going to make this post extremely short and to the point, because I know life insurance isn't the most exciting subject to read about. Life Insurance for businesses is typically used to fund a Buy Sell Agreement, so to fulfill the agreement, you'll need life insurance. 

As far as obtaining a life insurance policy, the first thing you’ll want to do is get a life insurance quote from an agent. Getting a quote is usually straight forward and only entails name, date of birth, coverage amount and the term. They may ask some basic health questions. If you are satisfied with the quote, the next step is the application (each person will fill one out). The application is going to go into more detail and there will be questions why the insurance is needed. In this case it is needed for the business. Also keep in mind they will most likely want to see financials. You will also want to make sure you select the beneficiary. This is the person that is getting the money should a death occur. These funds will be used to buyout the spouse or family member for their portion of the business that the deceased owned.
 
It might involve some time and paperwork to get everything setup, but it’s much easier to put the time in now, especially if you don’t have a contingency plan in place. Again, these agreements should not be overlooked when it comes to owning a business with partners.
 
If you have any questions about a Business Life Insurance Policy or any other Business Insurance, please let me know. You can also, go to our website to request a quote: http://www.striveinsurance.com/life-quote.html
 
Jason Matison
Commercial Insurance Agent
Austin, Texas

When it comes to Business Insurance policies, Workers Compensation should be at the top of your list as a business owner or risk manager. Although it is not required in Texas, it is highly recommended.  That being said, YES, it is necessary. Lets take a quick look at Part I and Part II of the Workers compensation policy and see why it's necessary. 

• Part I of Workers Compensation addresses employee work related injuries or occupational disease. This is essentially the heart of the Workers Compensation policy where the insurer agrees to pay for injuries sustained during the course of employment. Part one of the policy has eight clauses. One thing to note: Health insurance and General Liability do not cover work related injuries. 

 

• Part II is Employers Liability Insurance (not to be confused with Employment Practice Liability (EPL)). This part addresses the employers protection. If the employee believes the employer is negligent in the work related injury, and decides to sue, this part of the policy will respond. It will cover attorney fees, court fees and judgments or settlements. There are nine clauses to part two of the policy. 

As you can see, there's a reason most states require employers to have Workers Compensation coverage because it is extremely necessary. To be honest, in my 12 years as an insurance agent, I've seen more claims from Workers Compensation policies than any other policy. If you have questions about Workers Compensation coverage or any other Business Insurance policy, please feel free to contact me. If you would like a quote, please fill out the application below. To read another post about Workers Compensation, see this previous post Is Workers Comp Insurance Required? 

Jason Matison
Commerical Insurance Agent
Austin, Texas