Carryout Only Restaurant Insurance

How to Properly Insure Your Carryout-Only Restaurant

("Take away" or "dine in," your restaurant still needs the right protection)

How to insure a carryout only restaurant

Every single carryout restaurant out there has its own set of specific insurance needs. And finding the right carrier and coverage to help you cover those needs can be a pretty big job. That's where an independent insurance agent can be the perfect asset to have in your corner.

Independent insurance agents are experts in all types of businesses and can help connect you with quotes from multiple carriers to find the coverage and cost that works best for you, with no extra effort on your part. How sweet is that? To help you understand your needs and business coverage options a little better, here's a bit of background to get you started.

What Types of Insurance Does a Carryout-Only Restaurant Need? 

A business owner's policy (BOP) is a great place to start for many entrepreneurs. It's a combination of liability and property insurance. The bundle comes with some automatic discounts, and you can add specific types of coverage that apply to your business. 

Liability Insurance

Business liability insurance is often the first type of business insurance restaurant owners request from their agent. It protects owners and companies facing third-party claims or lawsuits from the financial consequences of legal fees and penalties. Liability insurance is essential for a carryout-only restaurant. 

Even though you don't have a dining room and customers don't eat on the premises, you still need to protect your business from claims related to visitors who get hurt while they are visiting your business. 

Property Insurance

Insuring your property is the first step to protecting your assets as a business owner. Make sure you have adequate coverage for your kitchen equipment, fixtures, and inventory as well. 

While your property insurance policy may protect your financial investment in your restaurant equipment if there's a fire or other covered event, it may not cover damage from electrical surges, operator error, or motor burnout. Discuss the different ways to insure your equipment with an expert insurance agent. It's crucial to make sure that you won't suffer large financial losses as a result of equipment failure. 

What Other Types of Insurance Should a Carryout-Only Restaurant Consider?

While you have many options, it's crucial to design your liability insurance package to protect your restaurant. 

Commercial insurance claims are on the rise in the US

Incurred losses for commercial insurance in the United States:
2015$117.59 billion
2016$124.67 billion
2017$137.94 billion

It's more important than ever to find an agent to help you get the commercial coverage you need to protect your restaurant. 

Umbrella Insurance

A commercial umbrella policy increases the amount of coverage provided by commercial auto and liability policies. It may also help handle costs associated with claims not covered by your other insurance policies. Umbrella insurance picks up where your other insurance coverage ends, preventing you from having to pay claims that are larger than your policy's limits. 

Product Liability Insurance

Talk with your independent insurance agent about whether you should get product liability insurance. If a customer gets sick from food they purchased at your restaurant, product liability insurance could help cover the associated costs. It may help you pay court costs and legal expenses related to defending yourself if someone claims they were injured by your products. 

Employment Practices Liability

General liability insurance won't cover claims of harassment or discrimination made by employees. Employment practices liability coverage can help protect your restaurant from the financial consequences of such accusations. It covers claims related to wrongful termination, wrongful discipline, failure to promote or employ, and mismanagement of employee benefit plans, among many other claims. The policy can reimburse your restaurant for the costs of defending lawsuits in court as well as for the costs of a settlement or judgment. 

Commercial Vehicle Insurance

FInanced vehicles should have the bank listed on the insurance policy as the payee. Check with your lender to make sure you stay in compliance with their insurance requirements. 

If you drive a vehicle for business purposes, commercial vehicle insurance is a great choice. Your personal auto insurance policy may not cover incidents that happen while you or your employees are performing business duties. 

If your restaurant also offers catering or other delivery services, your commercial auto insurance policy will protect you from paying claims out of pocket if one of your employees is in an accident while delivering food. 

Workers' Compensation Insurance

Most states have laws about how much workers' compensation insurance you'll need for your restaurant. If an employee is injured or becomes ill at work, this policy could pay for medical bills, cover lost wages, and pay temporary or permanent disability or death benefits. Money from a workers' compensation claim can pay costs associated with retraining or rehabilitation. It also covers costs associated with a fatal accident that happens while one of your employees is at work. 

Workers' Compensation is Essential

  1. Required by law in most states
  2. Protects your restaurant from workplace injury-related lawsuits
  3. Pays your injured employee's medical expenses and some of their lost wages

Workers can't sue your restaurant in most cases if they are injured on the job, but they will receive financial support through a workers' compensation insurance claim. The insurance protects the business from expensive litigation and judgements while providing employees with a safety net if they are hurt. 

Franchise Insurance Requirements

Carryout restaurants that are part of a franchise have additional insurance requirements. You'll find the specific insurance types and amounts in your franchise agreement. While there are many advantages to owning a franchise, it's crucial to stay in compliance with their rules. 

Talk with your independent insurance agent to learn about how a complete insurance package can work in your best interests while meeting the franchise's requirements. 

Does a Carryout-Only Restaurant Need Inventory and Equipment Insurance?

Insuring your building is the first step to protecting your assets as a business owner. Make sure you have adequate coverage for your kitchen equipment, fixtures, and inventory as well. 

Inventory Insurance

If your freezer or walk-in cooler fails, you could lose thousands of dollars worth of food. Interruptions in the electrical supply lasting longer than a few hours could mean that your entire inventory is unsafe to serve to your customers. Inventory insurance protects your business against financial losses that are the result of food spoilage. 

Restaurant Equipment Insurance

While your property insurance policy may protect your financial investment in your restaurant equipment if there's a fire or other covered event, it may not cover damage from electrical surges, operator error, or motor burnout. Discuss the different ways to insure your equipment with an expert insurance agent. It's crucial to make sure that you won't suffer large financial losses as a result of equipment failure. 

How to Find the Best Insurance for Your Carryout-Only Restaurant

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 independent insurance 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, a TrustedChoice.com agent can help simplify the whole process, and let you focus on the business side.

Find an independent insurance agent in your community here.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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