You want to open a restaurant in the First State, and you're eager to start bringing smiles to your customers' faces. But while you're perfecting your menu, you'll also need to consider what type of insurance coverage your restaurant needs in order to protect you against the parts of ownership that aren't quite as fun, like potential lawsuits.
If you need help finding the restaurant insurance you need, contact one of our independent insurance agents. They are more than happy to ensure that you have the policies that are right for your business.
In short, restaurant insurance is a policy designed to cover all the components involved in your restaurant, from your property and supplies to your employees and customers. Obviously, serving food to the public ties directly into concerns about protecting their health, but restaurant operation comes with many different risks that are important to consider before setting up shop.
We'll get into specifics for your state in just a minute, but first, let's check out the type of coverage generally needed for restaurant owners no matter their location. A restaurant insurance policy typically includes the following:
The basics included in a restaurant insurance policy may not cover all of your business's unique needs. Your independent insurance agent will know what add-ons to set you up with, but here's a look at a few that you might need (or just really want to have):
Delaware is one of only eight states that do not have dram shop laws, which means that if a customer is overserved liquor at your restaurant and causes damage after leaving your establishment, your business cannot be held accountable. That being said, anyone could still file a case against you because of a mishap with an intoxicated patron.
The lack of dram shop laws in Virginia could mean that the case is much more likely to be ruled in your favor, however, there are still fees to pay when someone files against you. Court fees and any expenses for a lawyer are your responsibility. Liquor liability coverage is still important to have, to save you from paying out of pocket for any lawsuits.
Delaware's coastal location makes it prone to hurricanes. These storms can be fierce, and they can seriously damage your restaurant. However, hurricane damage isn't typically covered under property insurance, so you'll want to have a discussion with your independent agent.
Your agent will know if you should add hurricane coverage. Delaware is one of 19 states that require a mandatory hurricane deductible as part of its homeowners insurance policies, so clearly the storms here mean business. Setting yourself up with coverage could save you a lot of grief.
It depends on what kind of restaurant you run and a few other factors, such as if you've got employees, offer a delivery service, operate a drive-thru, or serve liquor.
A typical range for coverage starts on the low end of about $10,000/year for a smaller establishment with fewer employees, and hits the high end of more than $100,000/year for a much larger restaurant, like a chain.
A restaurant insurance policy is typically the cheapest and easiest way to go. This package offers most of the liability and property coverage you'll need, and you can always add on specifics as necessary. Your independent agent will know exactly what to hook you up with.
Obviously, smaller is going to be cheaper. A food truck or corner stand downtown will be by far the cheapest option, since there won't be as many sales as in a larger chain, there aren't any other employees (that would require workers' comp), and you won't be serving alcohol. Coverage costs would most likely be in the low thousands each year.
On the other end of the spectrum, a large dine-in chain restaurant with tons of employees, features like a salad bar and buffet, and a liquor bar is by far the priciest/riskiest venture. All the required workers' compensation, property and liability insurance drive up costs exponentially.
It ultimately depends on lots of specifics like the number of employees and the value of the property, of course, but we're talking big numbers, like more than $100,000 per year.
Insurance policies are often filled with lots of technical jargon. Additionally, it's a real process to hunt for the RIGHT policy. Fortunately, sifting through the available options and pinpointing the necessary coverage is a task that can easily be handed off to someone else. That's where independent insurance agents come in to save the day.
Independent insurance agents will help you get the best possible deal, and the type of coverage that you (not anyone else) need. They'll do all the shopping and comparing insurance quotes for you, and they'll even break down the complex jargon so you understand exactly what you're getting.
Our savvy and trusty agents will review your needs and help you evaluate which type of Delaware restaurant insurance makes the most sense for you. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll get you covered — in a comprehensive and affordable way.