Cooking for friends and family is one thing. Add paying customers to the mix and things get dicey, fast. The leap from dream restaurant to hot-under-the-collar reality is a big one. Luckily, restaurant insurance is here to help cover every risk on the menu.
It doesn’t matter if you’re dreaming of a neighborhood grill or an elegant steakhouse. Our independent agents know Pennsylvania restaurant insurance inside and out, and they’re here to find the right coverage for you.
What Is Restaurant Insurance?
In short, restaurant insurance is a pu-pu platter of coverage that protects your customers, employees, property and inventory. Every restaurant will have a unique assortment of risks, so your insurance can be catered to cover them accordingly.
Restaurants in Pennsylvania are big business: They raked in over 20 billion dollars in sales last year. All the more reason to cover your assets.
Why Do I Need Restaurant Insurance?
Pennsylvania has the 5th-highest number of restaurants of any state in the country, just behind Texas and Florida. That’s over 20,000 restaurants and a LOT of Philly cheesesteaks. Insurance helps keep your business ahead of the pack by protecting your assets.
Restaurant disasters are bound to happen, especially when your kitchen is facing a rush of orders. Here’s a quick overview of things that can go wrong:
- You could lose your stuff: Damage or loss of your property, equipment and inventory
- You could be sued: A drunk-driving accident caused by over-serving a customer
- You could make a mistake: Food poisoning caused by improper handling of ingredients
Philadelphia restaurants have extra risk. The Philly metro area has high rates of robberies and vehicle theft compared to other US cities, so you’ll want extra coverage to protect your guests.
What Does Restaurant Insurance Cover?
Restaurant insurance is always a blend of different types of coverage depending on your business’s needs—a fast food place will need different coverage than a bar-restaurant. Here’s a list of flavors you’ll typically see in a restaurant insurance policy:
- Property: This covers your business’s physical assets, from buildings to furnishings. It usually includes coverage for fire, natural disasters and theft.
- Spoilage: This covers any inventory that spoils in a power outage or similar mishap.
- General liability: This covers costs if someone is hurt in your restaurant, including if they get food poisoning. (Check with your independent agent to ensure that your policy doesn’t exclude communicable disease from coverage.)
- Liquor liability: If you sell alcohol, this covers costs related to someone getting drunk at your restaurant and hurting themselves or someone else.
- Workers' compensation: This covers your employees’ expenses if they get injured on the job.
- Garagekeepers: If you have a valet service, this covers any damage to customers’ cars that may result.
- Boiler and machinery (equipment): This covers repair and replacement costs for your equipment under a wide variety of circumstances, including power surges and outages.
How Much Does Restaurant Insurance Cost?
If you’re just starting out, a premade restaurant insurance plan might be the ideal choice for coverage. These policies can be convenient, cost-effective and should offer the protection you need for the time being.
Once you’re more established, you’re better off customizing your insurance, especially if you have expensive furnishings, appliances, or a fleet of catering vehicles. Premade plans might not have the proper protection to fully cover all your goodies.
Depending on the size of your business, expect to pay anywhere from a couple thousand to tens of thousands of dollars a year. Serving alcohol will push your insurance costs higher.
The Awesome Benefits of an Independent Agent
Our agents will review your needs and help you evaluate the restaurant insurance coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection in place. So you’ll have that going for you.
Finding Restaurant Insurance Quotes in Pennsylvania
Our insurance agents are here to help you find the right coverage pairing for your business, so you can focus on your wine pairings. Not only that, they’ll cut the jargon and explain the nitty-gritty so you know exactly what you’re getting.
Most importantly, they’ve got your back. Many claim processes have strict deadlines. Our agents will be there to help you meet them. So you can take full advantage of your insurance benefits.
TrustedChoice.com Article | Reviewed by Paul Martin
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