business interruption insurance Archives

Restaurant Insurance 101: Coverages Every Owner Should Have

Today you’ll discover the essential coverages that restaurant insurance offers:

Protection against expensive accidents.

Peace of mind for you and your employees.

And a competitive edge in the restaurant industry.

Let’s get started.

Restaurant insurance is a specific type of business insurance designed to meet specific requirements associated with the food and beverage sector. While it is similar to standard business insurance, restaurant insurance plans focus on protecting against the unique challenges faced in the service industry. This includes issues such as foodborne illness claims, alcohol-related incidents, equipment failures and much more. To combat these particular obstacles, restaurant insurance policies bundle a number of different coverage to form a well-round protection plan.

Types of Coverage Included in Restaurant Insurance

The majority of restaurant insurance plans offer a variety of coverage options, including:

Each of these policies plays a crucial role in covering your restaurant from great financial loss.

But let’s dig a little deeper, to understand why each one is important in its own way.

General Liability Insurance

Especially in a busy setting like a restaurant, whether we like it or not, accidents happen. In simple terms, general liability helps handle these accidents by covering you against injuries to customers or any damage to their property while on your property. For example, let’s say a customer walks to the bathroom and slips on some grease that an employee accidentally dropped. In this instance, general liability insurance helps by paying for their medical expenses and any legal fees if they choose to file a lawsuit.

Property Insurance

Think about what physically makes up your restaurant. This includes your building, the kitchenware, the furniture and any decorations. These are the kind of assets that are protected by property insurance if a natural disaster, fire, robbery or vandalism occurs. If your restaurant suffers from one of these incidents, property insurance provides coverage in the form of replacements or repairs, so you won’t have to pay out of pocket.

Liquor Liability Insurance

Does your restaurant serve alcohol? If yes, then you may be held responsible if accidents occur involving intoxicated customers. Whether it’s a physical injury, damage to your property, or even an auto accident occurring after leaving your restaurant, liquor liability coverage protects against these types of claims. More specifically it pays for any damage taking place on the premises and the cost of court if applicable.

Workers’ Compensation

Since restaurants are fast-paced workplaces, it’s possible for employees to sustain injuries when they’re working. Medical costs and lost income are covered by workers’ compensation if an employee becomes ill or injured on the job. It is a crucial component of any restaurant insurance coverage because it is also mandated by law in every state except Texas.

Product Liability Insurance

As the owner of a restaurant, you are fully responsible for the food and beverages that you serve. If a customer has an allergic reaction or food poisoning as a result of anything they ate or drank, product liability comes in. It plays a large role in the protection of your financial well-being by paying for any medical or legal costs associated with the incident.

Business Interruption Insurance

Not only do unexpected events like fires and natural disasters have the potential to destroy your property, they can also shut down your business for extended periods of time. Luckily there’s a type of coverage to help when this sort of thing happens—Business Interruption Insurance. This insurance coverage helps by covering lost income if your restaurant is forced to close due to a covered event. Instead of risking having to close down permanently, with business interruption insurance, you’ll stay afloat and return to your business when the “down time” is over.

How Much Does Restaurant Insurance Cost?

A number of variables affect restaurant insurance rates. Below is a summary of the factors that could affect your monthly premium:

Location: Higher premiums may apply to a restaurant located in a high-risk location, such as one that is vulnerable to severe weather.

Size: In general, businesses that employ more people and have larger properties pay more in monthly premiums.

Types of Food Served: If your restaurant sells higher-risk food items like sushi or other raw items the risk of foodborne illness increases, which in turn may increase your costs.

Annual Revenue: Larger operations naturally present more risks, therefore restaurants with higher revenues may pay more in premiums.

Depending on the specific coverage needs of your business, monthly premiums vary quite a bit. With that being said, restaurant owners usually pay around $175 per month, or $2080 per year for a $1 million business owners’ policy (provides property, business interruption and liability insurance), according to Insureon.

How to Get the Best Restaurant Insurance Policy

Finding the most suitable restaurant insurance policy is more than simply getting the lowest price; it’s also about finding coverage that meets your company’s specific needs. Here are some suggestions to help you get the perfect policy:

Customize Coverage Based on Your Needs: Since every restaurant is unique, your policy won’t be the same as the restaurant across the street. More specifically, look to find a policy tailored to your businesses specific risks. For example, if you don’t serve alcohol, then don’t invest in liquor liability insurance. However if you do, this coverage is a must.

Check for Coverage Gaps: Be sure to carefully review each policy that you explore and compare, checking for gaps in coverage. Listing out your specific risks and corresponding coverage types ahead of time helps to ensure that nothing is missing.

Compare Quotes and Consult an Expert: Don’t settle on the first insurance package that you see. Instead compare a number of different options to find the one that fits your business best. EZ.Insure’s all-in-one platform makes it easy to consult with an insurance expert, view policies side by side, and get a quote all in a matter of minutes. This comprehensive approach ensures you can find a policy tailored to your restaurant’s unique needs.

Safeguard Your Restaurant Today

Having the proper insurance coverage is essential for safeguarding your business. Don’t wait until your company is in danger from an unforeseen circumstance. Now is the time to act!

Ready to take the next steps in securing your restaurant’s future? Get a free personalized quote today with EZ.Insure, so you can mitigate costly risks and keep serving customers with confidence. To get started, just fill out a quick form, or call us directly at (855)-694-0047.

Looking for more actionable ways to ensure your business is protected against the unexpected? Check our resource library, where we have dozens of informational articles, all aimed at helping business owners save money and reach their goals!

Do You Need Home-Based Business Insurance? 5 Questions to Ask

There are many benefits that come with running your business from home. This includes convenience, flexibility as well as comfort. With all this being said, many home-based business owners don’t consider the risks associated with running an organization from their house. This poses the question — “Do I actually need insurance for my home-based business?”

While you may scoff at the question at first, thinking it’s unnecessary, the truth is that just like any other business, having the proper coverage provides essential protection safeguarding everything you’ve worked for. But don’t just take our word for it. Instead, to help you make an educated decision about your options, we’ll delve into five critical questions to ask yourself. When it’s all said and done, you’ll have a solid understanding of why home-based business insurance is so essential.

Question #1: Do You Have Expensive Inventory or Equipment?

One of the first things to think about is whether or not your home-based business involves inventory or expensive equipment. Your homeowners’ insurance probably doesn’t cover business-related objects in the case of damage, theft, or loss, even if you work from home.

Think about things such as your laptop, tools, technology or any other equipment that’s vital to your business operations. Then consider any inventory. Do you sell goods? If the answer is yes, these items could also be in danger without the proper protection. In the unfortunate case of a fire or break-in, you may have to replace these valuables out-of-pocket.

Why This Question is Important

Your operation relies on your inventory and/or equipment and without it your business is probably not functional.
Without home-based business insurance, replacing these items may be very expensive or unaffordable.
Homeowner policies alone usually don’t cover inventory or equipment losses.

Question #2: Do Clients or Customers Ever Visit Your Home?

Do you ever hold meetings at your house office with customers or clients? If so, you might be putting yourself in danger for responsibility if an incident occurs. For instance, you can be liable for a client’s medical costs if they trip and fall on your property, leading to an expensive lawsuit.

General liability insurance covers property damage and physical injury claims made by third parties. Even if your place of business is your house, this type of coverage it’s still necessary for any company that deals with clients or consumers face-to-face.

Why This Question is Important

Hosting clients without the proper home-based insurance leaves you liable in the case of an injury
General liability coverage will take care of the costs of lawsuits or claims relating to an accident, so you won’t have to pay out of pocket.
Having general liability coverage puts clients at ease and bolsters your reputation as a responsible business owner.

Question #3: Could a Lawsuit Affect Your Financial Stability?

If you own a small business and are on a strict budget, a lawsuit could be extremely detrimental to your business. Even a small claim could have a huge negative impact. In addition to an injury-related incident, clients may also file lawsuits if they think you’ve committed a professional error or if they feel you failed to provide a promised good or service.

Unfortunately, the legal and court costs stemming from these types of situations can add up quickly and jeopardize your finances. That’s why it’s so crucial to consider investing in professional liability coverage on top of the general liability protection that we discussed above.

Why This Question is Important

Small businesses suffer far more than large corporations in the result of lawsuits since they generally don’t have nearly as much funds or resources.
Professional liability coverage takes care of legal fees, court fees, and other payouts associated with a business error.
Without coverage, a lawsuit could be so expensive that you’re forced to sell your assets.

Question #4: Do You Rely on Your Home-Based Business for Income?

If your home-based business is your main source of revenue, you should think about how an unplanned disruption could affect it. What would happen if your home was damaged by a fire, a natural disaster, or some other unanticipated incident that prevented you from using it for several weeks or even months?

Business interruption insurance acts as a safety net paying for lost income during these unexpected down times. This coverage guarantees that, even while your business is recuperating you can continue to fulfill your financial and client obligations, pay your bills, and provide for your family.

Why This Question is Important

Without business interruption insurance, an unexpected event may force your business to shut down entirely, therefore bringing your income to a halt.
This coverage oftentimes provides relief in the form of a new, temporary space to operate out of.

Question #5: Do You Use a Vehicle for Business Purposes?

While this question isn’t directly related to your home, many remotely-based entrepreneurs utilize vehicles in their day-to-day operations. Unfortunately, if you’re regularly using a car, truck or van for business purposes, your personal auto coverage probably won’t cover it.

Consider tasks such as delivery, client visits, or inventory transportation. If any of these are applicable to your company, and you aren’t properly covered, you’ll be financially liable for any accidents on the job. This is where commercial auto insurance comes in, protecting your business vehicle in the case of an accident during the work day.

Why This Question is Important

When using a vehicle for purposes related to your business, personal car insurance policies will not be enough.
If an accident occurs while you’re conducting business, you won’t have to pay out of pocket.
Without commercial auto insurance, you’ll be held liable for any vehicle damage, personal injuries or lawsuits stemming from the accident.

Final Thoughts on Home-Based Business Insurance

If you run a business from the comfort of your house, investing in home-based business insurance is crucial. Even if you still aren’t sure whether it’s necessary for your organization or not, just review the five questions listed above. If your answer to any of these questions is yes, home-based business insurance is likely a smart investment.

It’s important to get ahead of potential risks before they actually take place. If you decide not to, it could cost you an exorbitant amount of money, or even your entire business. So don’t wait for any surprises, instead, take time to review your coverage options, and find a plan that best fits your small businesses needs.

Visit EZ.Insure For Your Business Insurance Needs

We understand that shopping for business insurance isn’t fun and it can be confusing too. Luckily for you, there’s a platform that makes finding insurance quick and easy. We’re of course talking about EZ.Insure. At EZ we pride ourselves on the seamless, simple platform that we’ve built out. All you have to do is enter your ZIP code and in a few minutes you’ll be matched with a customized insurance quote for free! We also have side-by-side plan comparison tools so you can be sure to find the perfect coverage. To get started, fill out the form above or call us directly at 855-694-0047 to get started!

Your Hurricane Season Insurance Checklist

Multiple researchers and weather organizations are predicting a more than usually active hurricane season this year. According to noted forecasters at Colorado State University, we could see 16 named storms, 8 hurricanes, and 4 major hurricanes develop in the Atlantic Ocean during the June 1 – November 30 hurricane season. When you consider that an average hurricane season brings around 12 named storms, 6 hurricanes, and 2 major hurricanes, these predictions could mean big trouble for the eastern seaboard of the United States.

If your business is located in an area that is considered vulnerable to hurricanes (or really anywhere on the east coast – remember Hurricane Sandy in 2012?), then you need to take the time to seriously review your insurance coverage, and make sure that your business is protected. A great way to start is by reviewing our hurricane season insurance checklist.

The Impact of Hurricanes

Before we start on the specifics, let’s take a look at some examples that illustrate how hurricanes affect businesses. On a large scale, the impact of hurricanes on businesses can sound astronomical: Hurricane Dorian in 2019 caused an estimated $25 billion in insured damages, Hurricane Irma in 2017 caused businesses to lose a staggering $2.75 billion in sales, not including damages to property, and Florence in 2018 caused around $700 million in lost sales.

It may be hard to wrap your head around those figures, but consider that, according to the U.S. Small Business Association (SBA), 90% of small businesses fail within two years of being struck by a disaster. It’s not hard to see why. Take the example of John Treece, founder and CEO of DMA Sales, which sells automotive parts to big box retailers and distributors out of Tabor City, North Carolina. His business was hit hard by Hurricane Florence in 2018, and he had to close up shop for 2 whole weeks. He also lost the roof of his warehouse when it was literally “peeled off” by the wind, which caused a further $200,000 in water damage to his inventory. Many small businesses would not be able to survive a long-term closure or such a huge financial hit. That’s why making sure you have the right insurance is so important.

The Checklist

It is clear that hurricanes can have an overwhelming financial impact on the economy as a whole. And the individual example above makes clear that behind all of those big numbers, there are many small business owners who are left struggling to keep their businesses afloat. The right insurance policies can help.

Although small business owner John Treece was hit by one hurricane, the damages done to his business were caused by different things: wind, water, and forced closure. He would actually need multiple types of insurance policies to make sure that his losses were covered. As a business owner, you need to sit down and evaluate what you currently have and what you might need from the following checklist:

Property Insurance – most of your business’ hurricane coverage will come from your commercial property insurance. If you have a bundled Business Owner’s Policy (BOP), then general property damage will be covered under this policy. However, if you are in a hurricane-prone area, then it’s a good idea to take a closer look at what type of property coverage is available based on your location, your proximity to the coastline, and your carrier. Depending on these factors, and how much you are willing to pay, you may have:

All Peril – this is the most comprehensive type of policy, and will cover everything except what is specifically excluded from it.

Named Peril – this type of policy is cheaper than All Peril, but covers a lot less. As its name implies, it covers only what is named in the policy.

Wind and Hail – this is the cheapest of the policies, but it only covers damage caused by wind and hail. If rainfall is a concern, you will need a more comprehensive policy.

Flood Insurance – if there’s a chance that you could be hit by a hurricane, it is vitally important to know that water damage is NOT covered in the same way as wind or storm damage. In John Treece’s case above, his water damage should be covered as storm damage under his property insurance policy. Why? The difference is where the water comes from. His water damage was a result of rainfall from above. If, however, rising water had flooded his warehouse, he would have had to have flood insurance to cover his losses. Rising water is not covered under most policies, so make sure you are not only covered for wind and storm damage, but also flood damage.
Business Interruption Insurance – the above policies cover the physical damage to your business, but what about the losses you will incur from having to close your doors for an extended period of time? Repairing your business won’t be much use if you lose so much money that you are unable to reopen. Business interruption policies will help cover things like lost profits, employee wages, and the costs of a temporary location. These types of policies are add-ons to your other commercial insurance, so ask your agent about your options.

Don’t Forget the Basics

If you already have all of the policies above, great – but don’t sit back and relax yet. Don’t forget to check all the basics related to your policies, like:

Are the policies up-to-date?
What are the deductibles, and are there deductibles that are specific to named storms/hurricanes?
Do you have off-site property or inventory, and is it covered?
What could happen if you need to evacuate and leave your business empty for days or weeks? For example, could mold become an issue and, if so, will your policy cover the clean up?

Hurricanes and major storms will happen. Nothing can change that, and nothing can fully take away the stress and heartache of seeing all of your hard work threatened. But the right insurance policies can help to make things right if the worst happens. At EZ.Insure, we’re here to help you find the right coverage. We’ll connect you to your own knowledgeable agent who will review all of this information with you and find the right plan at the right price for you. No hassle, no obligation. Let us help bring you peace of mind. To get started simply enter your zip code in the bar above, or you can speak to an agent by calling 888-615-4893.

Business Interruption Insurance and the Rising Risk of Pandemic

“Pandemic” seems to be the word on every one’s lips these days. Recent events, as well as our modern world’s reliance on global travel and trade, have made many think about the risk of illness spreading quickly from country to country. While our first worry is always for the health and well-being of our loved ones and ourselves, it can also become necessary to think about such tragedy’s effect on our businesses. How do businesses protect themselves financially against catastrophic events? And is a policy such as business interruption insurance enough to protect them from the modern risk of disease?

umberella with a money sign under it being covered fromt he rain. — *Business interruption insurance helps protect a business during catastrophic events.*

Business Interruption Insurance

Is there a type of insurance that helps businesses recoup losses after a disaster? The answer is yes: it is called business interruption insurance. However, this type of insurance is not offered as a stand-alone policy: it can only be purchased as an add-on to property/casualty policies or included in a package plan.

As its name implies, business interruption insurance pays out if your normal operations are halted due to an event such as fire or natural disaster. It replaces income that you would have been getting had your business been up and running.

The pay-out period usually runs from the time of the event to the time when your insurance company decides the interruption is over – usually when your business is repaired / returned to the same condition as it started. How much you get during that time will be based on your previous financial records.

What Does Business Interruption Insurance Cover?

silhouette of a business man in suit and suitcase with a red line driving downwards behind him. — *Business interruption insurance will help your business recover from loss of profits, and more.*

Generally, business insurance policies can cover the following:

Profits

Fixed costs such as operating expenses

Temporary location

Training costs in case employees need to be retrained on new equipment

Employee wages

Taxes

Loan payments
Civil authority ingress/egress, which covers closures and resulting loss of income due to government intervention (such as curfews or street closures because of a covered event like fire)

Are There Limitations?

Business interruption insurance can obviously be very helpful to you and your business in time of need. But now we can look at whether it might be a way to help businesses get back on their feet after a devastating pandemic, or even a pandemic scare.

As with all insurance policies, business interruption insurance will only pay out if the cause of the loss is covered in the policy. In most policies, a business needs to suffer “direct physical loss or damage.” When most people think of damage to a business, they think of structural damage, but that doesn’t have to be the case. Let’s say, for example, that a business was directly contaminated by a pandemic virus, then you could certainly make the argument that your business was damaged and interrupted by the event.

However, the question remains whether businesses closed due to an outbreak can claim on their business interruption insurance. While they will obviously suffer income loss if they have to close their business, it seems unlikely that insurance companies will decide to pay out. They do not consider contagious diseases damage to property, and some insurance companies have even been specifically singling out viruses and bacteria as things that are not covered in their policies. The only other possibility for help might be the “civil authority ingress/egress” coverage. If the government closes all businesses, then perhaps you could argue that they are the cause of your loss.

The best thing to do when considering these uncertain situations is to contact your insurance company and ask lots of specific questions about your coverage. And remember, EZ.Insure is here to help you find the best plan to protect your business. Our services are always free and nobody will ever hound you with endless calls. You have enough to worry about! To get started simply enter your zip code in the bar above, or you can speak to an agent by calling 888-615-4893.

Tag: business interruption insurance

Restaurant Insurance 101: Coverages Every Owner Should Have

Types of Coverage Included in Restaurant Insurance

General Liability Insurance

Property Insurance

Liquor Liability Insurance

Workers’ Compensation

Product Liability Insurance

Business Interruption Insurance

How Much Does Restaurant Insurance Cost?

How to Get the Best Restaurant Insurance Policy

Safeguard Your Restaurant Today

Do You Need Home-Based Business Insurance? 5 Questions to Ask

Question #1: Do You Have Expensive Inventory or Equipment?

Why This Question is Important

Question #2: Do Clients or Customers Ever Visit Your Home?

Why This Question is Important

Question #3: Could a Lawsuit Affect Your Financial Stability?

Why This Question is Important

Question #4: Do You Rely on Your Home-Based Business for Income?

Why This Question is Important

Question #5: Do You Use a Vehicle for Business Purposes?

Why This Question is Important

Final Thoughts on Home-Based Business Insurance

Visit EZ.Insure For Your Business Insurance Needs

Your Hurricane Season Insurance Checklist

The Impact of Hurricanes

The Checklist

Don’t Forget the Basics

Business Interruption Insurance and the Rising Risk of Pandemic

Business Interruption Insurance

What Does Business Interruption Insurance Cover?

Are There Limitations?

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