Protection against expensive accidents.

Peace of mind for you and your employees.

And a competitive edge in the restaurant industry.

Let’s get started.

Restaurant insurance is a specific type of business insurance designed to meet specific requirements associated with the food and beverage sector. While it is similar to standard business insurance, restaurant insurance plans focus on protecting against the unique challenges faced in the service industry. This includes issues such as foodborne illness claims, alcohol-related incidents, equipment failures and much more. To combat these particular obstacles, restaurant insurance policies bundle a number of different coverage to form a well-round protection plan.

Types of Coverage Included in Restaurant Insurance

The majority of restaurant insurance plans offer a variety of coverage options, including:

• General Liability Insurance
• Property Insurance
• Liquor Liability Insurance
• Workers’ Compensation
• Product Liability Insurance
• Business Interruption Insurance

Each of these policies plays a crucial role in covering your restaurant from great financial loss. 

But let’s dig a little deeper, to understand why each one is important in its own way. 

General Liability Insurance

Especially in a busy setting like a restaurant, whether we like it or not, accidents happen. In simple terms, general liability helps handle these accidents by covering you against injuries to customers or any damage to their property while on your property. For example, let’s say a customer walks to the bathroom and slips on some grease that an employee accidentally dropped. In this instance, general liability insurance helps by paying for their medical expenses and any legal fees if they choose to file a lawsuit. 

Property Insurance 

Think about what physically makes up your restaurant. This includes your building, the kitchenware, the furniture and any decorations. These are the kind of assets that are protected by property insurance if a natural disaster, fire, robbery or vandalism occurs. If your restaurant suffers from one of these incidents, property insurance provides coverage in the form of replacements or repairs, so you won’t have to pay out of pocket. 

Liquor Liability Insurance 

Does your restaurant serve alcohol? If yes, then you may be held responsible if accidents occur involving intoxicated customers. Whether it’s a physical injury, damage to your property, or even an auto accident occurring after leaving your restaurant, liquor liability coverage protects against these types of claims. More specifically it pays for any damage taking place on the premises and the cost of court if applicable. 

Workers’ Compensation 

Since restaurants are fast-paced workplaces, it’s possible for employees to sustain injuries when they’re working. Medical costs and lost income are covered by workers’ compensation if an employee becomes ill or injured on the job. It is a crucial component of any restaurant insurance coverage because it is also mandated by law in every state except Texas. 

Product Liability Insurance 

As the owner of a restaurant, you are fully responsible for the food and beverages that you serve. If a customer has an allergic reaction or food poisoning as a result of anything they ate or drank, product liability comes in. It plays a large role in the protection of your financial well-being by paying for any medical or legal costs associated with the incident. 

Business Interruption Insurance 

Not only do unexpected events like fires and natural disasters have the potential to destroy your property, they can also shut down your business for extended periods of time. Luckily there’s a type of coverage to help when this sort of thing happens—Business Interruption Insurance. This insurance coverage helps by covering lost income if your restaurant is forced to close due to a covered event. Instead of risking having to close down permanently, with business interruption insurance, you’ll stay afloat and return to your business when the “down time” is over. 

How Much Does Restaurant Insurance Cost?

A number of variables affect restaurant insurance rates. Below is a summary of the factors that could affect your monthly premium:

• Location: Higher premiums may apply to a restaurant located in a high-risk location, such as one that is vulnerable to severe weather.

• Size: In general, businesses that employ more people and have larger properties pay more in monthly premiums.

• Types of Food Served: If your restaurant sells higher-risk food items like sushi or other raw items the risk of foodborne illness increases, which in turn may increase your costs. 

• Annual Revenue: Larger operations naturally present more risks, therefore restaurants with higher revenues may pay more in premiums.

Depending on the specific coverage needs of your business, monthly premiums vary quite a bit. With that being said, restaurant owners usually pay around $175 per month, or $2080 per year for a $1 million business owners’ policy (provides property, business interruption and liability insurance), according to Insureon.

How to Get the Best Restaurant Insurance Policy 

Finding the most suitable restaurant insurance policy is more than simply getting the lowest price; it’s also about finding coverage that meets your company’s specific needs. Here are some suggestions to help you get the perfect policy:

• Customize Coverage Based on Your Needs: Since every restaurant is unique, your policy won’t be the same as the restaurant across the street. More specifically, look to find a policy tailored to your businesses specific risks. For example, if you don’t serve alcohol, then don’t invest in liquor liability insurance. However if you do, this coverage is a must. 

• Check for Coverage Gaps: Be sure to carefully review each policy that you explore and compare, checking for gaps in coverage. Listing out your specific risks and corresponding coverage types ahead of time helps to ensure that nothing is missing.

• Compare Quotes and Consult an Expert: Don’t settle on the first insurance package that you see. Instead compare a number of different options to find the one that fits your business best. EZ.Insure’s all-in-one platform makes it easy to consult with an insurance expert, view policies side by side, and get a quote all in a matter of minutes. This comprehensive approach ensures you can find a policy tailored to your restaurant’s unique needs.

Safeguard Your Restaurant Today

Having the proper insurance coverage is essential for safeguarding your business. Don’t wait until your company is in danger from an unforeseen circumstance. Now is the time to act!

Ready to take the next steps in securing your restaurant’s future? Get a free personalized quote today with EZ.Insure, so you can mitigate costly risks and keep serving customers with confidence. To get started, just fill out a quick form, or call us directly at (855)-694-0047. 

Looking for more actionable ways to ensure your business is protected against the unexpected? Check our resource library, where we have dozens of informational articles, all aimed at helping business owners save money and reach their goals!

Fortunately, with the proper product liability insurance policy in place, you’ll instead be protected against the financial repercussions associated with the product-related claim. To help you get ahead of these types of potentially costly issues we’ve developed a simple guide explaining what product liability insurance is, risks it protects againsts, and why it’s so important for your business. 

What is Product Liability Insurance? 

Product liability insurance is a specific type of coverage intended to shield companies against lawsuits pertaining to goods they manufacture, sell, or distribute. These claims usually occur when a product injures a customer, damages their property, or has a flaw that results in harm. This insurance also covers the legal fees related to defending your company.

What Does Product Liability Insurance Cover?

Here are some of the main areas that product liability insurance generally covers:

• Consumer Injuries: If a customer sustains injuries as a result of a flaw in your product’s design or function.
• Property Damage: Product liability insurance pays for the necessary repairs if your product causes harm to someone’s property.
• Defective Products: This insurance covers claims against your business if a product is defective due to a manufacturing error or incorrect labeling. 
• Legal Defense: Attorney fees, court costs, and any other expenses associated with defending your company in a lawsuit are all included.
• Payouts for Settlements: If your company is held accountable for an accident, the insurance pays for the settlement or additional compensation owed to the impacted parties.

Why Your Business Needs Product Liability Insurance

In today’s day and age, lawsuits are quite common. Even the smallest problem with a product can result in an expensive lawsuit. While it’s important to always operate your business carefully with the proper safety measures in place, unexpected errors still happen. Without the right coverage, costs could overwhelm your company so much that you’re forced to take out loans or even worse, shut down for good.

The Risks of Selling Products

To help underscore the importance of product liability insurance, let’s examine some of the common risks involving products and goods. 

• Manufacturing Defects: Production mistakes resulting in the sale of hazardous or flawed goods to customers.
• Flaws in Design: Even when dealing with high quality materials and top-of-the-line engineering, design flaws are possible and can put users at risk of injury.
• Inadequate Labeling or Lack of Warning: Accidents or injuries stemming from mislabeling, or missing safety warnings result in your business being held liable.

A study from the Insurance Information Institute found that the average cost of a product liability claim can range anywhere from tens of thousands to millions of d

ollars, depending on the severity of the damage. Without product liability insurance these costs have the potential to devastate your business, even if they’re on the low end of the average cost scale. 

How Product Liability Insurance Protects Your Business

This coverage serves as a financial safety net, covering the costs of legal defense, medical bills, and future settlement payouts. No matter if you’re a small or large business, the impact caused by product-related lawsuits can be extremely costly without the right insurance in place. Here are the main protections that product liability insurance offers: 

• Legal Costs and Fees:  If a lawsuit is filed, the cost of legal representation can mount quickly. You won’t have to pay for your defense out of pocket thanks to product liability insurance, which covers these expenses. Also, product liability covers any additional lawsuit fees. 
• Medical Expenses: If a consumer sustains injuries because of a flaw in your product, insurance pays for their medical bills
• Settlements and Payouts: A product liability policy will also cover the settlement and payout costs, if your company is found liable for a product defect. 

Real-World Example: In 2017 there were multiple court cases involving exploding smartphone and electronic-cigarette batteries, where consumers were injured due to faulty equipment. In one case, the claims and defense costs totaled over $200,000. Luckily for the company at hand, their product liability insurance covered the expenses. 

How to Get Product Liability Insurance

Getting product liability insurance for your business is a pretty straightforward process. First, you must consider the variables that affect your coverage. Insurance companies usually take the following factors into account when estimating premiums costs and the necessary level of coverage:

• The Types of Products You Sell: Different types of products come with different levels of risk. For example, common household items like a table, come with far less risk than electronic or medical devices. If the products your company offers have high risk levels, it’s crucial to invest in product liability protection.
• Sales Volume: The higher volume of products that you sell, means the higher chance that a product-related incident will occur. This increased risk may affect the cost of your insurance premium. 
• Business Size: The size of your business may also affect the monthly premium cost for product liability insurance. In general, premiums will be cheaper for smaller companies in comparison to large corporations.

Once you’ve taken some time to consider these factors, the next step is to work with a trusted insurance provider such as EZ.Insure. EZ.Insure’s process makes getting matched up with a quote and quality insurance plan quick and simple. With the help of our coverage comparison tools and expert insurance agents , you can get the coverage your business deserves! 

 In a Nutshell

For business selling, manufacturing or distributing goods, product liability insurance is a must. This essential coverage shields your company from costly financial risks stemming from product-related claims. Whether it’s legal fees, settlement costs, or medical bills, product liability has got your back.

Just because you haven’t had any product-related accidents yet doesn’t mean they can’t occur. Instead of wondering what might happen, be proactive by preparing for the unexpected. To take the next steps and get a free product liability insurance quote, just visit EZ.Insure and enter your zip code, or call us directly at 855-694-0047.