11.16.2014

Getting started in the restaurant business is exciting work, and nothing short of stressful. Of course, once everything is in place you can develop your own workflow and rhythm, but first things first.

One of the most important aspects of opening your own dining establishment is to obtain the right kind of insurance. It is always better to cover your bases right from the start in order to avoid hardship later on down the line.

Let’s break it down for you so you know what to get and what you can bypass.

The Basics

Some preliminary types of restaurant insurance include property insurance and liability protection.

These two types help to cover you and your business should a disaster such as a flood or fire strike you down. Moreover, liability coverage protects you in case an employee or client gets injured on your property. You may also need to obtain a liquor insurance (and a license) if your eatery sells or distributes alcohol. When drinking is involved, the odds of personal injury or accident become even higher. Another thing to remember is adhering to the rules and requirements of your bank or lender.

Managerial Measures

With the basic types of insurance out of the way, you can now focus on your restaurant as a business, with employees, procedures, and regulations. For instance, we discussed coverage for injured patrons, but you’ll also want to insure your employees in case they get hurt on the job. Most workers also expect to receive some kind of medical, life, and unemployment insurance as part of their employee benefits. While this coverage varies from business to business, it is always something that a restaurant owner needs to keep in mind.

Other Options

Finally, there are several other kinds of coverage that you may be interested in, depending on the nature of your establishment. Some things to consider include any company vehicles, other locations, or equipment. Since we’re talking about the restaurant business, it is wise to look into protecting yourself and your company in case of health and safety issues. For example, food poisoning, contamination, or safety violations could cost you if you don’t have the right coverage. Furthermore, if you live in an area that is prone to perilous weather, such as tornadoes, floods, or harsh winter conditions, then bulking up your general liability protection with something more specific could be a good idea.