Busy workspaces, a constant turnover of customers and the fast-past life of working there make running a restaurant risky. Restaurant insurance can provide the necessary cover to protect your business as well as the staff and customers you interact with every day.
So what exactly is restaurant insurance?
If there’s one thing that the COVID pandemic has taught us, it’s that things can seem to be chugging along nicely before something comes out of the blue to throw things entirely off track and leave people in the lurch. This is why it’s so crucial to remain ready and prepared for any setback that could result in the disruption of your business and its operations.
In all likelihood, your restaurant will have some combination of or all of the furniture, potentially expensive kitchen equipment and stocked food that will need protection from possibilities such as damage and theft. Even brief disruptions to your business can have damaging results, too, as most hospitality businesses rely on being open every day, and customers are likely to notice if your availability or level of service drops.
What Are the Best Restaurant Insurance Policies?
It’s also essential to think about whether the constant turnover of customers and the fast pace that you probably work in warrants looking into public liability insurance. For the vast majority of restaurant owners, this will be worth doing. All sorts of things can go wrong in a restaurant that could leave you in the lurch if you don’t have public liability insurance. There may be cases where a customer gets food poisoning or falls on a wet, slippery floor. These situations easily result in claims made against you, which can leave you in a challenging situation if you’re not prepared.
First of all, they can be a significant source of wasted time. Whilst your speciality is probably in running a restaurant and looking after your business, you’re unlikely to be making efficient use of your time by also being bogged down in legal proceedings. If you have public liability insurance, there will be someone ready to take over this role. This person is likely to be more prepared and trained for legal proceedings, so those will go more efficiently whilst your time isn’t wasted in an area outside of your specialities. Instead, you can focus on an area that is your expertise, running a restaurant.
As well as being time-efficient, having public liability insurance is also potentially going to save you financially should one of these incidences go wrong. If someone makes a claim against you and is found by a court to be in the right, you can be forced to fork out for a large payout. The amounts of these payouts can be in the thousands or even hundreds of thousands, and chances are your budget isn’t prepared for this kind of expense to be sprung on you out of nowhere. If you have public liability insurance in such a situation, your insurer should cover the cost and save you from being thrown into economic disarray.
This is a lot healthier budget-wise in the long term, as you can account for the small expense every month of paying for your insurance, rather than one day suddenly having a huge lump sum thrown at you that you’re not prepared for.
You’ll also be required by law to have employers’ liability insurance if you have any employees. If you run a restaurant as a sole trader and have no other employees, that’s very impressive. Employers’ liability insurance covers you similarly to public liability insurance but instead is related to matters or claims made by your employees. Again, this is important in keeping both you and your employees safe. For this reason, even if it weren’t a legal requirement, we’d still strongly recommend it. So don’t be too upset about the fact that it’s mandatory, and if you don’t already have your employers’ liability insurance sorted, make sure you get it sorted as soon as you can!
What Else is There to Look Out For When Purchasing Restaurant Insurance?
It will also be worth searching for which contents and property you would like to get insured. It’s doubtful that your business could operate without the building you use, so getting your premises insured may be a priority.
Restaurant Insurance – To Conclude
Getting the expensive equipment that you use to make your great food may also be a priority to insure if you know your business couldn’t operate without it. Make sure that you research all of these things to get the protection that’s right for you.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Is Professional Indemnity Insurance a Legal Requirement?
How Much Product Liability Insurance Do I Need?
Is Employers’ Liability Insurance a Legal Requirement?
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: