The cost of insurance always seems to come up and sometimes it's difficult to give an estimate. Restaurant Insurance Cost can vary depending on several factors. Here is a list of 5 factors that can impact what you will pay for Business Insurance.
1. Gross Sales
The higher the gross sales, typically the higher the General Liability premium will be. It makes sense if you think about it, the more people you serve, the more you will pay for insurance. Not sure what you're gross sales will be? That's OK. Insurance companies typically go off estimates and will calculate the actual premium by doing a premium audit at the end of the policy period.
2. Property Coverage
How much property coverage do you have? You'll want to break this down for your agent by equipment, business personal property, tenant improvements/betterment's or building coverage. The more coverage you have, the more premium you'll pay. You might consider different deductible options to reduce the premium.
3. Loss History
Have there been any previous losses claims/losses? This can have a big impact on premium and also the number of insurance companies willing to write your restaurant.
4. Are You Selling Liquor
If you plan on selling liquor, are you going to want Liquor Liability? It's not required, however, it is highly recommended. This coverage can increase premium significantly. Also, what kind of drink specials are you going to have? Some insurance companies shy away from certain happy hour establishments or college bars that serve food.
5. Years in Business
Have you been in business more than 3 years? Some insurance companies won't write restaurants if they've been in business less than 3 years, so this can impact how many insurance companies will provide you with a quote.
Hopefully this list was helpful. There are many more factors that can have an impact on Restaurant Insurance Cost. The range for premium can vary. I've had a small restaurant with sales of $80,000 and $30,000 in property coverage pay around $100 per month; and a larger establishment with sales of $1.5M and $600,000 in property coverage pay around $1,000 per month. Let me know if you have any questions about Restaurant Insurance Costs or any other type of Business Insurance. If you would like a quote, I'll just need the Restaurant Insurance Application below.
Commercial Insurance Agent