Protecting Your Restaurant with the Right Insurance

Are you the proud owner of a food service business? If the answer is yes, when was the last time you asked yourself: ‘Am I doing all I can to protect my business?’ Here at Anderson, Bagley & Mayo (ABM), we understand the hard work you have dedicated to starting and growing your business, which is why want to do all we can to protect your livelihood from any possible risks.

What is Restaurant Insurance?

Restaurant Insurance provides specific protections tailored to the unique risks a food service business faces. Whether your food service business is a café, deli, diner, pizza shop, fast-food, family-style or fine-dining restaurant; all food service businesses share certain risks. Restaurant insurance helps protect you from these risks and gives you peace of mind so you can focus your customers.

What does Restaurant Insurance Cover?

Like any other business, a restaurant requires property insurance, liability protection, and business interruption insurance. These three coverages are typically included in a business owner’s policy for food industry businesses and provide coverage for the following:

• Property Insurance — provides coverage for the building itself and its contents
• Liability Protection — covers your company’s legal responsibility for the harm it may cause to others
• Business Interruption Insurance — covers the loss of income resulting from a covered peril, such as a fire, that disrupts the operation of the business. Business Interruption Insurance can also include Extra Expenses, which helps to cover the costs of running your business in the event that it needs to temporarily relocate.

Worker’s Compensation Insurance

Worker’s Comp is a mandatory coverage required for all businesses operating in Massachusetts. This coverage helps protect your business by covering medical costs and a portion of lost wages for employees who become sick or are injured on the job. For example, if an employee slips and falls while on the job, workers compensation insurance can help cover their medical bills and a portion of their lost wages if they are unable to work due to their injury.

Crime Coverage-Employee Dishonesty

In the event that an employee stole from the cash register, merchandise was stolen by a robber, or money was lost due to forged checks, Crime Coverage could help cover these losses. Crime coverage is especially important for businesses that deal in cash or in online payments as this coverage protects your business from losses both within and outside your restaurant. For example, if you were robbed on your way to the bank to make a deposit, Crime coverage could help cover your loss.

Do I Need Additional Coverage?

We understand that restaurant insurance is not a one-size-fits-all policy, which is why we first assess the risks of your unique restaurant business before addressing each of those exposures with the proper coverage. Often times, we will suggest adding one or more of the following coverages when structuring your policy:

• Liquor Liability — If your restaurant serves alcohol, then you must have liquor liability coverage. This endorsement covers your defense and any damages for which you are liable, up to the policy limit.
• Employment Practices Liability Insurance (EPLI) – This coverage protects you and your business against claims filed by prospective, current and former employees alleging discrimination, sexual harassment and wrongful termination. It may also protect you against discrimination claims made by customers.
• Cyber Liability – According to Verizon’s Data Breach Investigation Report, restaurants are the single most targeted business when it comes to cyber-attack and data breach, making Cyber Liability Insurance a good idea for any restaurant. Cyber Liability Insurance, also called Cyber Risk Insurance and Data Breach Insurance, is a small business insurance plan that helps restaurants pay for the expenses associated with recovering from a data breach.
• Spoilage — This important endorsement covers the value of property spoiled as a result of your premises’ heating or cooling equipment failing or breaking down.
• Mechanical Breakdown — This endorsement provides protection against a loss due to a mechanical or electrical breakdown of nearly any type of equipment, including boilers, refrigeration systems, and piping.
• Outdoor Signs — This endorsement covers any outdoor signage that is not attached to your restaurant building. As you may know, signs can cost thousands of dollars. Better to have your Insurance policy pay rather than paying out-of-pocket!
• Business Vehicle Insurance — For vehicles primarily used in business, your personal auto policy will not provide coverage when the vehicle is being used for work. Business Vehicle Insurance is an additional insurance policy that provides property and liability protection for cars, trucks, vans or other vehicles you use for your business.

Review Your Policy with an ABM Agent

As your neighbors in North Central Massachusetts, we are the trusted, local independent agent for over 800 businesses. Whether your restaurant business is up and running or you’re still in the planning phase, let the professionals at Anderson, Bagley & Mayo Insurance be a part of your risk management team. We’ll work to shield your business from the unexpected with the right insurance policies. For any questions about a new or existing restaurant insurance policy, contact us online, by phone, or in person at one of our four convenient Massachusetts locations at (978) 534-2800 (Leominster); (978) 632-1098 (Gardner); (978) 874-2921 (Westminster); (978) 464-5857 (Princeton) — we’re always happy to help!