Restaurant Insurance 101

Remember when the Hickoryland BBQrestaurant insurance evansville restaurant in Jasper burned to the ground on Christmas Eve in 2013? How about when a kitchen fire forced Evansville’s House of Como to close for over a year and a half? Or the rooftop robberies in 2012 that affected other Evansville area restaurants?

If something like this happened to your business, would you be prepared to deal with the loss of income and the costs associated with rebuilding?

If you’re in the restaurant business, you need a portfolio of coverages to protect what you’ve worked so hard to build. Let’s take a closer look at how to find the restaurant insurance right for your needs.

Insuring Your Property

Property insurance provides coverage for your business assets. That includes the building, equipment, inventory, and supplies your business uses. Property insurance can be specifically customized for your restaurant’s needs. For example, you can purchase coverage for food service equipment breakdown.

Some restaurants require specialized coverage. Be sure you’re aware of any local laws that affect your restaurant. Our team at Kincaid Insurance knows how to evaluate which coverage is right for your business. We regularly work with:

  • Locally owned independent restaurants
  • Franchises such as Applebee’s, Chili’s, Wendy’s, McDonald’s, Burger King, Sonic, Starbucks, etc.
  • Pizza restaurants
  • Chinese restaurants
  • Fast food restaurants
  • Coffee shops
  • Delis
  • Catering businesses
  • Cafes
  • Bars
  • Cafeterias
  • Diners

Having a good property insurance policy is key for restaurants. Property insurance provides you with the coverage necessary to rebuild or remodel after a fire, flood, break in, or other damages to your restaurant. If you own a business that is part of a franchise, you will likely have to meet a number of insurance guidelines to be compliant with the franchise’s policies. As an independent owner you have a little more flexibility when it comes to determining what type of coverage to purchase, but you also have a higher risk. This means you will want to be sure to find the best policy for your restaurant.

Liability Options

There are a number of liability coverage options available for restaurants. A general policy may suit your business model just fine, but restaurants that serve alcohol will need to purchase liquor liability coverage. If your restaurant offers delivery or catering services you’ll need to purchase a commercial auto insurance policy.

Spoilage insurance coverage is available as a liability option. This coverage protects your restaurant from lost revenue resulting from food contamination or spoilage as well as loss of product related to power outages or refrigeration equipment failure.

Off-premise coverage is strongly recommended for restaurants that offer food delivery as well as catering businesses that transport their own equipment and food products. This coverage protects the property of others while it is being used by your restaurant. As an example, if your catering equipment were to malfunction and start a fire at a venue, the policy would cover the damage.

Protect Your Assets & People

Whether you own a local diner or a part of the Starbucks franchise, restaurant-specific coverage is essential to protecting your business. Depending on your restaurant, you will most likely want to consider these other types of coverage:

  • Worker’s Comp
  • Loss of Income
  • Identity Theft

Find the Right Coverage For Your Restaurant

The independent agents at Kincaid Insurance make it their business to understand the ins and outs of the restaurant industry. Our team is prepared to help you navigate coverage options and find the policy that will provide the best protection for your restaurant. We’re in the business of helping you stay in business. Contact Kincaid Insurance today at 1-877-888-5506.

Request a Free Quote


*This article contains the names of popular restaurants, which may be trademarks of their respective parent companies. These trademarks are mentioned purely for informational purposes, and no endorsement is intended nor implied by Kincaid Insurance.