Businesses in the food industry are different than other small businesses. If you own a restaurant like a pizza parlor, you may face more risk than an average small business.
That’s why it’s important to invest in a comprehensive business insurance program that carefully addresses all of your unique risks. An independent insurance agent in your city can help you understand all of your exposures, and find the insurance companies and policies that are designed specifically for your needs.
Why Do I Need Pizza Parlor Insurance?
There are literally endless possibilities and scenarios that can lead to costly financial losses for your pizza parlor. Aside from making sure that you attract enough business, minimize expenses, and turn a profit, you also need to be gravely concerned with the many ways that things can go wrong.
Pizza parlors do face typical risks like fire, theft and vandalism, severe weather, and workplace injures. But you also are at risk for a variety of more insidious threats such as:
- Food contamination or spoilage
- Delivery driver car accidents
- Customer injuries on your premises
- Breakdown of ovens, refrigerators, or other kitchen equipment
- Utility interruptions that force you to close
- Responsibilities related to serving alcohol
What Does Pizza Parlor Insurance cover?
Every pizza parlor needs a customized package of property, liability, automobile, crime, and other business insurance policies to protect them from financial losses. It’s a good idea to work with an agent and an insurance company who specialize in pizza parlor and other restaurant insurance.
Property Coverage for Pizza Parlors
Your commercial property insurance offers protection for your building (if you own it), as well as everything inside of it.
If you sustain a property loss after a fire, a tornado, lightning, theft, vandalism, or some other covered event, this policy helps you pay to rebuild, make repairs, and replace destroyed or damaged furniture, kitchen equipment, inventory, dinnerware and cutlery, fixtures, office equipment, menus, computer systems, and even outdoor tables, umbrellas, and lighting.
So if a fire destroys your kitchen or vandals carve obscenities into your tables, it could cost tens of thousands of dollars to pay for the damages. Your commercial property insurance would help finance your recovery.
Talk to your independent insurance agent about the difference between insuring your business property for actual cash value or replacement cost, and how rented kitchen equipment should be insured.
Business Interruption Insurance for Pizza Parlors
When you have a property loss, it’s likely that you might also have to close down for a while in order to make repairs, rebuild, and restock lost inventory and supplies.
In these cases, your business interruption insurance helps replace lost income during the shutdown period. It also covers some of your ongoing expenses like rent, employee, salaries, utility bills, and more.
You need your ovens, commercial ranges, dishwashers, freezers, and refrigerators to be in good working conditions at all times if you want to continue to serve high quality, fresh food.
If something essential breaks down due to a power surge, user error, or some other covered event, you could face a loss of income during the downtime as well as significant repair or replacement costs.
Talk to your independent insurance agent about your need for equipment breakdown coverage. It protects against costs associated with the sudden and accidental breakdown of machinery and equipment. It pays to repair or replace the equipment as well as any business interruption costs that accompany it.
Liability Insurance for Pizza Parlors
Liability insurance protects your business when you are considered to be negligent or blamed for causing harm to an individual or another business. This can be in the form of property damage, an injury, an illness, or some kind of reputational harm.
It is your financial lifeline if you are sued for some reason.
Commercial general liability (CGL) insurance provides broad protection for third-party bodily injury and property damage claims. It can help you cover the medical bills of injured individuals, repair or replace damaged property, pay for your legal defense if you are sued, and even cover penalties and judgments if you are responsible for a third party’s damages.
If, for example, a server drops a scorching hot pizza on a guest’s head, causing burns to her face and ruining her clothes, you could expect to pay for the guest’s related medical bills as well as cleaning or replacing her soiled clothing.
If the guest decides to sue you for additional damages due to the trauma caused by the event as well as ongoing pain and suffering, you’d need coverage to help you pay for your legal defense and any financial payouts.
General liability insurance also provides coverage for product liability, advertising liability, slander, and libel claims against your pizza parlor.
Let’s say that in the course of advertising your pizza parlor in the local newspaper, you cause a financial “injury” to a competitor by copying their advertising ideas, or infringing on a copyright or slogan. Your CGL policy would protect you if you were sued for damages as a result.
Get Protection for When Food Goes Bad
Your business relies on the constant availability of fresh ingredients that are highly perishable. A power outage or refrigeration breakdown could lead to a serious financial loss for your pizza parlor.
Contamination and spoilage coverage is part of your commercial property protection. It pays for certain losses if perishable foods or ingredients are spoiled or contaminated due to refrigeration breakdown, utility interruption, or some other type of foreign substance contamination on your premises.
If your local board of health or another agency forces you to close because of food contamination, your contamination and spoilage insurance may cover you for lost income during the shutdown period, as well as costs related to cleaning contaminated equipment and disposing of and replacing spoiled food.
Contamination and spoilage insurance does not protect you in cases where you accidentally serve tainted or “bad” food and a customer becomes ill whether the contamination occurred on your premises or was because of food purchased from a supplier. This kind of incident is covered under your general liability policy.
Other Pizza Parlor Insurance to Consider
Aside from major property and liability risks, pizza parlor owners likely need several other insurance policies to protect them from financial harm and unexpected events. Talk to your independent insurance agent about your need for the following:
- Commercial auto insurance: If you use business-owned vehicles to deliver pizzas, you need commercial auto insurance to protect you from lawsuits when one of your drivers is involved in an accident. It can also help you pay for car repairs. It’s more likely that your delivery drivers use their personal autos, and if this is the case, you need non-owned or hired auto liability insurance. This provides liability coverage for when employees use their own cars for business purposes. Their personal auto policies likely don’t cover them for business use, and you need protection for when your drivers cause accidents.
- Crime coverage: Protects your pizza parlor if an employee or a group of employees engage in theft, forgery, or fraud that damages your business.
- Workers’ compensation insurance: Protects your workers, including restaurant managers, servers, cooks, dishwashers, hostesses, and cashiers, from the costs of work-related injuries and illnesses. This coverage pays for medical bills and lost wages for employees who sustain cuts, burns, slip and fall injuries, repetitive motion injuries, or any other injuries or illnesses related to their work.
- Employment practices liability coverage: Protects you if a current or former employee sues you for discriminatory employment practices.
- Liquor liability insurance: Covers the responsibilities associated with intoxicated guests who go on to harm others. If you serve alcohol to a patron who then kills someone while driving drunk on his way home from your restaurant, your pizza parlor may be named in a lawsuit. Liquor liability insurance pays for your legal costs as well as any financial settlements for the injured parties.
How Much Does Pizza Parlor Insurance Cost?
The cost of pizza parlor insurance depends on the policies you choose, the unique risks your restaurant faces, the value of your inventory and equipment, and other factors like your location, number of employees, and the size of your establishment.
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right pizza parlor insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get, but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
©2020, Consumer Agent Portal, LLC. All rights reserved.