Insurance is great! Love may be a bit of an overstatement, but it’s still pretty darn useful. Things happen, we know, but insurance can soften (if not eliminate) the blow for restaurants.

Every business, local or otherwise, should protect their company with insurance. You probably already know this though — the necessity of insurance is a given. However, most people treat insurance like just another box to be checked — which is totally understandable.

The crux of the matter is that by buying insurance to buy insurance for your restaurant, you may buy a policy that is not right for you. Many common risks, particularly in the restaurant industry, are not covered in your insurance policies. No worries, we are here to help. Let’s take a look at five common situations that many restaurant insurance policies do not cover.

Insurance for Restaurants — Are You Covered?

Food Poisoning
— As a restauranteur, your entire business revolves around food. It’s your responsibility to serve foods that are not only delicious, but safe — and proper food preparation practices can only go so far. Surprisingly, most insurance policies do not cover food poisoning; meaning that if anyone were to sue you, you will be liable for any medical expenses or damages awarded to the plaintiff.

Cyber Concerns — Nowadays the vast majority of transactions are made via credit or debit card — accounting for 75% of restaurant purchases, to be exact. Because of this inevitable fact, you must protect yourself against potential hacking or data breaches of your payment systems. A hack can result in such high costs. Cyber liability insurance is a must today!

Business Closures — Most policies only cover business closures after seventy-two hours, yet most business interruptions last less than that time. This means that you may be paying a premium for a policy you may never be able to use. Good news, though, Bikelane covers business closures within twenty-four hours.

Employees and Automobiles — You may be asking yourself, “What the heck is that?” Well, this is just an extension of good ole worker’s compensation. If you send an employee on an errand or delivery and they are injured, you may be liable.

Property — We know you probably have property insurance, just bear with us. Most property insurances plans have limited coverage or provisions against certain situations. For instance, if the water is in your basement storage area, you need a property insurance policy that covers damage from sewers, drain backup, and seepage from underground pipes — pretty specific stuff.

Enough of the flaws, let’s discuss some solutions. It is important to understand what your current policy covers.

Feel free to contact us to schedule an appointment to let us review your policy — we will sweat the small stuff so you don’t have to!