5 Crucial Areas of Restaurant Insurance
While you may want to take risks with your menu, décor, or marketing plans, there’s no greater mistake than cutting corners when it comes to some of the major risks that can threaten the continued existence of your whole business model. Let’s take a look at some of the ways that having a rock-solid risk management plan and restaurant insurance policy can make all the difference in your success as a company.
- Tools of the trade. You live and die by the equipment that keeps your restaurant in business. No matter the cause—a storm-induced power outage, a combustion of your machinery, or human error, having one of your major pieces of equipment on the fritz can cause some serious issues in your continued success. Get regular inspections and seek updated replacements for faulty machinery.
- To the loser goes the spoils. For a paper company, the break room fridge losing its functionality wouldn’t be such a big issue—but for a restaurant it could mean the world. If you do have equipment failure as mentioned above, your food storage containments could be in serious danger of losing the next month’s income to something as simple as heat. Getting spoilage and contamination coverage as part of your restaurant insurance package is a great way to protect against this issue.
- Safe food. You will want to keep your food safe, and if you have major contamination issues on your hands, this might not work as smoothly as you would have hoped. However, it’s not always up to you. If there is a recall on a particular food product, or you are faced with a large number of food poisonings—and resulting lawsuits, you will need to have good food contamination coverage as well. This will protect you against lawsuits, but as well for other losses in market share and product costs.
- Sourcing your supply. Getting business interruption insurance is an important way to protect yourself against losses that will occur if you are unable to continue sourcing your product from a formerly consistent supplier. This could happen in so many ways, and it’s important to be prepared in case it should happen, otherwise your services and reputation could suffer as a result, hurting your long-term prospects and growth.
- Safety on the net. As many businesses and restaurants shift their operations at least partially online, they are opening themselves up to a plethora of risks that are associated with keeping sensitive data electronically. Keeping financial business information on your computer means you should absolutely be enrolling in cyber-liability insurance, covering legal and PR expenses as well as identity restoration and forensic analysis.
Discuss Your Business Insurance Needs with an Agent Today!
We know that juggling so many pieces of running a successful restaurant can be overwhelming, which is why we’re here to help put your risk management strategy into place today with top-quality restaurant insurance. For a quote, contact us at Skeele Agency, Inc., today.