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Launching a neighborhood restaurant is a dream of many Americans who want to share their recipes with a community. Your first move should be all the costs related to running a business that serves food. Part of this research will encompass restaurant insurance for small businesses.
Businesses that serve food have health risks that other business don't. The risk of food poisoning leading to illness or death can lead to litigation that drains company assets. The key to protecting your restaurant is to include coverage that pays for food poisoning under Commercial General Liability (CGL) insurance. Here's a look at several types of coverage a small business restaurant needs.
Selecting proper restaurant insurance for small business begins with CGL. This coverage not only protects against illnesses people get after consuming your food, but it also protects against injuries. So if a customer gets burned by coffee or trips and falls in your establishment, your CGL coverage will pay the medical bills.
If you own the property where your business operates, it's wise to purchase commercial property insurance. This coverage will protect your structures and their contents from natural disasters, theft, and vandalism. Many businesses choose a Business Owners Policy (BOP), which combines general commercial liability with commercial property coverage under one plan.
All states require employers to carry worker compensation insurance, which covers employee accidents and illnesses. It may also provide compensation for missed work. Since this coverage is mandatory, you cannot afford to ignore it. Doing so can lead to excessive fines and jail time in some states.
Restaurants that serve alcohol need to buy liquor liability coverage to guard against expensive lawsuits resulting from drunk behavior. A victim of an intoxicated person's recklessness or violence can sue your establishment for a massive amount of money. Having liquor liability coverage pays for these legal costs.
Business insurance for a small restaurant typically costs around $1,500 per year, while a more elaborate operation might pay as much as $6,000 per year. Your cost for monthly premiums will be based on several factors including the square footage and location of your establishment. Your credit and claims history will also come into play. It's possible to cut insurance costs by reducing risks that lead to injuries or illnesses.
Make your restaurant safe for patrons to help lower insurance costs. Contact our agents at Fuller Insurance Agency today to learn more about the specific types of restaurant insurance for small businesses you need. A sound policy that covers all your business risks will help you sleep better at night.
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