There are many restaurants located in the Nashville suburb of Franklin, TN. Restaurant insurance helps these businesses remain profitable when disaster strikes.
If you're looking for the best coverage for your Franklin restaurant, look no further than a local independent insurance agent. These agents can work with several different insurance providers to help you build a suitable policy package at a competitive price. Contact an insurance agent near you to learn more.
Why Do You Need Insurance for Your Franklin Restaurant?
Like any business, restaurants have a number of risks. What if a kitchen fire got out of control? What if a waiter spilled hot soup on a customer’s lap? What if the power went out for an extended period and thousands of dollars’ worth of food was spoiled?
A well-built restaurant insurance policy can protect your business against these and many other potential hazards. A local independent insurance agent can help find all the potential exposures faced by your particular restaurant to ensure that you aren't left with any unintentional coverage gaps. Talk to an insurance agent near you to get started.
What Kinds of Liability Coverage Can Restaurant Insurance Provide?
Business liability coverage is a very important part of every restaurant insurance policy package. It is designed to cover court costs, legal defense fees, and damages if your business can be considered at fault and is sued for injuries or damage suffered by others.
As the owner of a restaurant in Franklin, you have a number of liability exposures. Having the right coverage in place can save you a great deal of money if you find your business on the wrong end of a liability lawsuit. Some of the liability insurance products your insurance agent may recommend that you include in your restaurant insurance policy package are:
- Premises liability insurance: This is designed to cover injuries and property damage suffered by customers, visitors, and guests while on your business property, such as if a patron slips on a wet floor and breaks a bone.
- Product liability insurance : This is designed to cover injuries or illness caused by a product your company produces. If the food you are serving is contaminated with E. coli, for example, this insurance will cover related medical bills and other financial damages brought upon your restaurant if it is sued.
- Liquor liability insurance: This is necessary only if your restaurant serves or sells alcoholic beverages. It can protect you if an intoxicated patron causes injuries or property damage to another and your restaurant is named in a subsequent liability lawsuit.
Talk to a local insurance agent to learn more about these and other liability insurance products that may be right for your Franklin restaurant.
What Kinds of Property Coverage Does Restaurant Insurance Provide?
You have probably invested a lot a lot of money when furnishing and decorating your restaurant, not to mention the cost incurred by equipping it with suitable appliances, cookware, and food. It's important to ensure that all of the property is suitably covered. You may therefore want to include the following in your restaurant insurance policy package:
- Commercial property insurance: This can pay to repair or replace your business assets, such as tables, chairs, cookware, computer systems, outdoor signs, and decorative items, if they are damaged by a covered event.
- Boiler & machinery insurance: This can cover the costs associated with the breakdown of important business equipment such as refrigeration units, stoves, air conditioners, and dishwashers.
- Spoilage insurance: This covers the cost of replacing food that has spoiled due to hazards like extended power outages and other mishaps that can cause refrigeration units to fail.
An independent insurance agent in Franklin can help you review your restaurant’s property coverage needs to ensure that you will be able to repair, rebuild, or replace lost property following a covered event.
What Other Coverage Should Restaurant Owners in Franklin Consider?
There are additional insurance products you may want to include in your restaurant insurance policy package. These include the following:
Business interruption insurance
In 1988, an F4 twister touched down just 2.5 miles from the Franklin city center and caused several million dollars in damage to area homes and businesses.
Business interruption insurance can provide your restaurant with a continuation of income in the event that you must close down for an extended period due to damages caused by a covered event such as a fire or a tornado. Businesses with this insurance are able to continue to pay monthly expenses while they prepare to reopen to the public.
Car insurance policies
Does your restaurant offer delivery services? If so, you'll want to be sure that you're properly covered against liability risks if one of your drivers causes an accident while making or returning from a delivery. Commercial vehicle insurance covers company-owned vehicles, if you have any, while non-owner car insurance covers your company’s liability risks if your drivers use their own vehicles.
Does your restaurant offer valet parking services? If so, you may want to add garagekeepers insurance to your coverage portfolio. This insurance covers damage to your customers’ vehicles if they are damaged or lost due to negligence on the part of your valet parking attendant. This insurance can prevent your restaurant from having to face an ugly liability lawsuit.
Businesses near waterways like the Harpeth River, Saw Mill Creek, and Watson Branch are most at risk for flood damage in Franklin, but when heavy rains fall, drainage systems can become overwhelmed and flood damage can happen just about anywhere.
Unfortunately, flood damage is not covered by your commercial property insurance. You may therefore want to consider adding commercial flood insurance to your policy package. As a business owner, you may purchase up to $500,000 in both structural and property coverage.
Do Restaurant Owners in Franklin Need Workers’ Compensation Insurance?
As a business owner in Tennessee, you are required to carry workers’ compensation insurance if your restaurant employees at least five workers. Family members and part-time employees must be included when you are counting how many employees you have.
Workers’ compensation insurance is designed to cover the treatment of injuries sustained on the job and can also cover your employees’ lost wages while they are recuperating from a work-related injury. This insurance can be purchased through a commercial provider, or, with approval, your restaurant may opt to self-insure.
A local independent insurance agent can match you with an insurance company that specializes in covering businesses in the accommodation and food services industry and help you be certain you're getting your coverage at the best price.
How Much Does Restaurant Insurance Cost in Franklin, TN?
The cost of insurance can vary from one restaurant to another. A small diner near Williamson College is likely to pay less for insurance than a fine dining establishment in the heart of the city. Depending on your restaurant, insurance costs can range between $1,000 and $10,000 a year.
For the most part, your price for restaurant insurance will depend on several factors such as:
- The size of your restaurant and its annual revenue
- The number of employees you have
- The types of coverage you opt to purchase
- The amount of coverage you wish to purchase
- The crime rate and weather risks in your ZIP code
- How long your restaurant has been in business
- Your restaurant’s claims history
The only way to know how much a comprehensive restaurant insurance policy package will cost you is to start requesting and comparing customized quotes from a few different insurance companies. Independent insurance agents can save you both time and money by requesting and comparing these quotes on your behalf.
Why Work with an Independent Insurance Agent in Franklin, TN?
Independent insurance agents live and work in your community, so they understand the risks faced by business owners in Franklin. They can help you review your restaurant’s various exposures and can make sure you are property covered against each of them. Best of all, these agents can work with several different insurance companies to make certain you are not overpaying for your coverage.
Set up a one-on-one consultation with an independent insurance agent near you to learn more about your options when it comes to restaurant insurance.
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