You have many choices when it comes to insuring your sub and sandwich shop. If you aren't sure how to best protect your business from unforeseen events that could result in losses, you aren't alone. After all, your area of expertise is subs and sandwiches. Luckily, an independent insurance agent's expertise is in protecting your business.
An independent insurance agent can help you find the right coverage for your business and tailor it specifically to your needs. No matter what you specialize in, an independent insurance agent will help you shop multiple carriers to help find the right business insurance so you'll know your business and livelihood are protected. But first, here's a bit more background on the insurance needs of your sandwich shop.
What Insurance Does a Sandwich Shop Need?
Whether you have a dining room with full service or more of a fast food setup, general liability coverage will handle many common insurance claims. A business owners policy (BOP) is a combination of property and liability coverage, bundled and offered at a discount.
Here's what may be included with a BOP for a sub and sandwich shop:
Property insurance protects your equipment, fixtures, inventory, and buildings by paying for repairs or replacement when a covered event causes damage.
Customers who are hurt on your property may ask you to pay their medical bills, as well as cover other damages. If your business has liability insurance, you'll be able to minimize the negative financial effects of a covered event.
Business income insurance
If you have to shut down your sub and sandwich shop due to a covered event, your business owners policy (BOP) may help replace lost income so you can keep your bills paid.
You may also want to consider adding other insurance policies to your BOP as needed:
Commercial vehicle insurance
Many sub and sandwich shops deliver food to customers with company vehicles, allow employees to use their personal vehicles for delivery, or use a company car to conduct day-to-day business operations. While it may seem like any auto insurance policy would cover you in case of an accident, personal auto insurance may not pay claims for incidents that occur while conducting business.
Your employees' personal auto insurance policy may not cover them if they are involved in an accident while delivering food. It also won't protect the business from claims. It's crucial to have commercial vehicle insurance for you and your employees.
Cyber liability insurance
As more consumers become comfortable with digital transactions, cyber liability claims are a growing concern for small business owners. Debit and credit card use is common, as is paying with a smartphone.
Fast food customer payment method preference:
- 44% Ddbit card
- 32% cash
- 18% credit card
Most restaurants accept debit and credit cards for their customers' convenience.It's crucial to be aware of the possibility of a security breach that could expose sensitive customer information.
A cyberattack that exposes your customers' payment information could be financially devastating. Cyber liability insurance could help cover the costs of helping your customers recover after such an event.
Balancing Insurance Requirements and Your Sandwich Shop Needs
Choosing the right insurance is a pressing problem for small businesses. You may not be required to carry many types of insurance, but they could make sense for your sub and sandwich shop. As of February 2020, the cost and availability of insurance was the fourth most pressing problem for small businesses. It was a bigger problem than competition from larger businesses, cost of labor, or poor sales.
Your independent insurance agent will help you understand your other business insurance options. They'll work with you to choose the best combination of policies to protect your business while getting you the most value for your dollar.
Insurance required by a franchise
If your sub and sandwich shop is part of a franchise, you may be required to carry certain types of insurance. Check your franchise agreement to learn more about the requirements.
While there are many advantages to joining an established group of sub and sandwich shops with turnkey marketing and ongoing training opportunities, there are guidelines that owners must follow. Your independent insurance agent can help you look closely at your franchise agreement. They'll walk you through the requirements and help you choose business insurance that meets the needs of your shop while staying in compliance with your franchise agreement.
Bank or landlord insurance requirements
Whether you own or rent your building, there could be rules about how much and what types of insurance you need to purchase to protect your restaurant. Check your lease or mortgage agreement to learn more about what types of insurance you'll need.
When you insure financed or rented assets, you may need to list the lienholder or property owner on the policy. If your vehicles are financed or leased, you'll also need to comply with the requirements for commercial auto insurance by the bank or lease company.
Does a Sandwich Shop Need Special Insurance for Its Building and Equipment?
If a BOP isn't quite right for you, it's crucial to properly insure your sub and sandwich shop's building and kitchen equipment. Anything from a rogue windstorm to an electrical fire can shut down your sub and sandwich shop, preventing you from serving customers for days or even weeks.
Insuring the building makes sense, and it may be required by your landlord or lienholder. If you own your sub and sandwich shop's building, consult your independent insurance agent about whether cash value or replacement value insurance would best serve your needs. With replacement value insurance, your premiums may be a bit higher, but you won't have to pay as much of the total reconstruction costs out of pocket as you would with a cash value policy.
Restaurants typically require expensive equipment and fixtures to keep their business running smoothly. Specialty sub toasters, industrial-sized meat and cheese slicers, and heavy-duty prep tables cost tens of thousands of dollars to replace. If a covered event creates a need for new equipment, your property insurance policy may cover the cost.
Finding the Best Insurance for Your Sandwich 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?
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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, let your agent help simplify the whole process, allowing you focus on the business side.
Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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