The accommodation and food services industry is a thriving one, particularly in larger cities and high tourist areas. No matter where you travel in the United States, you can rely on being able to find lodging or food within a reasonable driving distance. This industry provides jobs to nearly 13 million Americans and is a major contributor to the Gross National Product. If you own an establishment within this industry, it is important that you protect your investment with a comprehensive business insurance policy that is designed specifically to protect your company from the hazards inherent to the accommodation and food services business sector.
Business Types in the Accommodation and Food Services Industry Sector
All U.S. businesses are classified into various industry sectors and subsectors by the National American Industry Classification System (NAICS). This is done for the purpose of facilitating the collection, analysis and reporting of financial data for various industries.
The accommodation and food services industry is comprised of businesses that provide lodging services or food as part of their primary business model. Therefore, business such as movie theaters, comedy clubs and other types of entertainment venues that may happen to serve food to patrons are excluded from this particular industry type.
There are currently 810,800 American business establishments classified as falling within the NAICS’s accommodation and food services industry sector. These include the following:
- Accommodation Related Business, including:
- Casino Hotels
- Bed and Breakfast Inns
- RV (Recreational Vehicle) Parks and Campgrounds
- Recreational and Vacation Camps
- Rooming and Boarding Houses
- Food Services Related Businesses, including
- Food Service Contractors
- Mobile Food Services
- Drinking Places (Bars and Nightclubs)
- Full-Service Restaurants
- Limited-Service Restaurants
- Cafeterias, Grill Buffets and Buffets
- Snack and Non-alcoholic Beverage Bars
Insurance for the Accommodation and Food Services Industry Is Essential
Business owners in the accommodation and food services industry have a number of risks against which they need to be protected. Commercial insurance providers understand this and offer a number of different and unique coverage options that are designed to meet the varying needs of these types of companies.
Some examples of coverage options that may appeal to owners of accommodation businesses include:
- Utility Interruption Coverage: If a covered natural or man-made disaster leads to the loss of utility services, you may need to relocate your guests to another place of business. This is particularly necessary if you have no running water or no electricity or heat for an extended period of time. This coverage can cover your income losses and assist with other related damages.
- Guest Property Coverage: In the event that a guest at your establishment suffers property loss due to negligence, theft or other causes, this coverage is designed to enable you to make reparations to that guest.
And some of the many coverage options specifically suited to the food services industry include:
- Product liability insurance: This will protect your business in the event that the food you are serving is somehow contaminated and causes patrons to get sick. For restaurants that serve alcohol as well, additional coverage will be necessary in the form of liquor liability insurance.
- Equipment breakdown coverage: Kitchen equipment such as stoves and freezers may break down as the result of a mechanical failure, power surge or other problem. When this happens, you stand to lose a lot in contaminated food and income potential. Equipment breakdown insurance coverage is designed to provide you with compensation for your losses and financial assistance to make necessary repairs.
This is far from a complete list of coverage types that are available with commercial insurance plans for the accommodation and food services industry. Not every option will be right for your business, but some may be necessary to protect you from potential hazards. It would therefore be in your best interest to work with an insurance professional who can provide you with guidance and advice about your business insurance coverage.
Independent Agents Can Help You Build the Right Commercial Insurance Policy
Building a business insurance policy that is suitable to meet all the coverage needs of your accommodation or food services business can be a complex and time-consuming endeavor. Fortunately, you can greatly simplify the process by requesting the assistance of an independent agent in the Trusted Choice® network. Because these agents are not captive to any particular insurance provider, they are free to shop around to find you great, competitively-priced coverage and can manage all of your insurance needs under one roof.
Contact a Trusted Choice network agent with an office near you to get more information and you can start comparing quotes on insurance for the accommodation and food services industry in no time.