Whether you're a first-time restaurant owner or a veteran of the bagel business, insurance probably isn't a topic you prefer to spend a lot of time on. In fact, in a recent survey, small business owners called out insurance cost and availability as one of their top concerns, ranking even higher than their own sales and labor costs. That's where having an independent insurance agent in your corner is key.
An independent insurance agent will get to know you and your business insurance needs before shopping with multiple carriers for a range of quotes that properly fit your business risks and budget. You can just sit back and focus on the bagels and they'll handle the insurance part, it's that simple. But first, here's a bit of background to help you understand what you'll be looking at for your business.
What Types of Insurance Does a Bagel Shop Need?
A business owners policy (BOP) meets the needs of many small business owners. It's basically a combination of property and liability insurance designed to handle the most common claims small businesses tend to face.
General liability coverage
This type of coverage handles claims if something happens to someone else because of your business. It includes coverage for medical bills and lawsuits due to injuries sustained at your shop. Liability insurance may include one million dollars of coverage per incident and a maximum of two million dollars of coverage per year. Of course, your insurance is customizable according to your needs. Your agent will help you find the perfect balance between premium rates and coverage amounts.
There are many aspects of running a small business that aren't in the owner's control. Storms, fires, and accidents happen everywhere. The right property insurance policy can help you get back up and running with the least amount of financial strain possible.
Many specialty restaurants have specific equipment that can't be replaced with a quick trip to a local big box retailer. A broken oven or mixer could prevent you from serving customers, so getting insurance that covers that scenario is a must for bagel shops.
Other insurance requirements
Talk with your independent insurance agent about meeting any insurance requirements from your lienholders, landlord, and franchiser, as well. They may ask to be named as an insured party on the policy to protect their interests. Your agent can make sure you have the coverage you need while staying in compliance with your contracts.
What Other Types of Business Insurance Should a Bagel Shop Consider?
General liability insurance doesn't cover illness caused by the food you serve. It also doesn't cover employment-related claims made by employees. Talk with your agent about product liability, employment practices liability, and medical expenses to help round out your coverage.
Commercial auto insurance
If you or your employees drive a vehicle for business purposes, you'll need commercial vehicle insurance. Personal auto insurance policies may not pay claims related to an accident that happened while the driver was performing work duties.
Cyber Llability insurance
Cyber liability insurance offers coverage that any business accepting credit card payments should consider. If your bagel shop collects personal information like credit card numbers or contact information such as addresses and phone numbers, you are at risk for an electronic security breach that could expose your customers' private information.
As a small business with employees, you also have information on file like full legal names, addresses, Social Security numbers, and even bank account numbers for paycheck deposits.
Your business may be held liable for any financial damages associated with a data breach. For most small businesses, this type of financial setback could be devastating. Cyber liability insurance is a smart way to protect your business from devastating losses.
Workers' compensation insurance
In most states, businesses with employees must pay workers' compensation insurance premiums. This type of insurance covers medical bills and lost income if one of your employees is injured on the job. It also provides short-term and long-term disability and death benefits, if needed. It's crucial to understand the laws in your state, so talk with your agent about how best to meet your workers' compensation insurance requirements.
How to Find the Best Insurance for Your Bagel Shop
Insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.
When it comes time to purchase insurance, they’ll break down all the jargon and explain the nitty-gritty so you understand exactly what you're getting.
And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it all was. How great is that?
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. So instead of searching around from company to company, your agent can help simplify the whole process, and let you focus on the business side.
Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Greg Safford
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