Chattanooga is home to more than 180,000 people, so it’s easy to find a variety of restaurants that can suit every style and taste in this city. From inexpensive diners frequented by students at the University of Tennessee to bistros on the North Shore that are popular with tourists, all of these dining establishments can benefit from being covered by restaurant insurance.
When you are in the market to buy restaurant insurance, you may find it helpful to have the assistance of a local independent insurance agent. These agents can explain your various coverage options and can give you trustworthy advice so you can be sure that your restaurant is suitably protected against all of its potential hazards. Contact an insurance agent near to you to learn more.
What Is Restaurant Insurance?
Restaurant insurance is a specific type of business insurance policy package that is customized to meet the unique coverage needs of restaurant owners. As a restaurant owner, you can further modify your coverage so that you are only buying insurance products that are applicable to your particular restaurant while forgoing those that are not.
Independent insurance agents can offer advice and guidance as you decide which coverage you do and don't need.
What Kinds of Coverage Can Chattanooga Restaurant Insurance Provide?
The following insurance products are available for you to include in your restaurant insurance policy package. A local independent agent can explain each of these in further detail and can help you identify the policies that are right for your particular restaurant:
- Premises liability insurance: This is part of every business insurance policy’s commercial general liability (CGL) coverage. It pays for third-party injuries or property damage that occur on your business property.
- Product liability insurance: This is also part of every business insurance policy’s commercial general liability (CGL) coverage. It pays for third-party illnesses or injuries caused by the food or beverages you are serving.
- Commercial vehicle liability insurance: This is applicable only if your restaurant owns vehicles used for food deliveries. It covers liability expenses if one of your drivers causes a collision.
- Non-owner car insurance: This is applicable only if your restaurant offers delivery service and your delivery drivers use their own cars. It can cover the liability expenses for which your business may be responsible if an employee is in an accident while on the clock.
- Liquor liability insurance: This is applicable only if your restaurant serves or sells alcoholic beverages. It is designed to cover your business if a patron becomes intoxicated and causes property damage or injuries to others, who may then name your restaurant in a liability lawsuit.
- Garagekeepers liablity insurance: This is applicable only if your restaurant offers valet parking services. It covers damage to your customers' vehicles while they are in your business’s custody, care, or control.
- Commercial property insurance: This is designed to cover your business property if it is lost or damaged by a covered event like a fire or a windstorm.
- Boiler & machinery insurance: This covers business losses and repair costs if equipment or machinery used by your restaurant malfunctions.
- Spoilage insurance: This covers the cost to replace food that is spoiled due to factors beyond your control such as extended power outages.
- Business interruption insurance: This provides a continuation of income if your business is forced to close down for an extended period while repairs are made following a covered event like a fire or a tornado.
- Workers’ compensation insurance: This is required by Tennessee state law if your restaurant employs at least five workers. It can cover the cost of medical treatment and lost wages if your workers are injured while doing their jobs.
- Fidelity bonds: Also referred to as employee dishonestly insurance, this can cover losses related to dishonest or illegal acts performed by your workers, such as if an employee is caught adding significantly to the tip amounts left by customers and charging it to their credit cards.
Get more information about these and any other insurance products that may be beneficial to your Chattanooga restaurant by talking with a local independent insurance agent.
What about Flooding in Chattanooga?
Many Chattanooga restaurant owners are in danger of experiencing flood damage. Those with establishments near waterways like the Tennessee River, South Chickamauga Creek, and Lookout Creek are most at risk. However, when heavy, prolonged rainfall comes to the area, expensive flood damage can happen just about anywhere.
Unfortunately, your commercial property insurance will not cover damage caused by floods. In order to be protected against this hazard, you will need to supplement your restaurant insurance coverage with a flood insurance policy through the National Flood Insurance Program (NFIP). An independent insurance agent can help you secure this important coverage.
When purchasing commercial flood insurance, business owners are permitted to purchase up to $500,000 worth of structural coverage (which is necessary only if you own the building in which your restaurant is housed) and up to $500,000 worth of property damage coverage.
Talk to your insurance agent to learn more.
How Much Does Restaurant Insurance Cost in Chattanooga, TN?
The cost of restaurant insurance can vary from one business to another. Coverage costs can range from $1,000 for a small diner to more than $10,000 for a large fancy restaurant. Your costs will be determined based on several factors such as:
- The size of your restaurant and your annual revenue
- The number of employees you have
- Whether your restaurant includes a bar
- The amount of insurance coverage you are purchasing
- The coverage options you wish to include in your policy package
- The weather risks and crime rate in the ZIP code where your restaurant is located
- How long you have been in business and your restaurant’s claims history
The only way to know how much a policy will cost you is to request customized quotes from a variety of insurance providers. Independent insurance agents can obtain these quotes on your behalf and can review the coverage offered by each with you. That way, you can be sure you are getting a great policy at a highly competitive price.
Why Work with an Independent Insurance Agent in Chattanooga?
When you are ready to purchase a restaurant insurance policy, be sure to contact one of the many independent insurance agents in and near Chattanooga. These agents live and work in your community, so they understand that risks you face as a business owner in this city.
Independent agents work for you, not for a particular insurance company. Because of this, you can be sure you are getting honest advice and trustworthy guidance as you build your policy package. Find an insurance agent near you to learn more about your options when it comes to restaurant insurance.