The restaurant industry is a driving force in the economy with about 1.6 billion dollars in daily sales, and employing one out of every ten working Americans. Every restaurant has their own identity, whether it be their physical location (in a metropolitan museum, on a historical landmark), the type of atmosphere they seek, or the style of food they serve. Some restaurants have dancing and live music, others offer a movie or comedy performance with dinner, but at the end of the day, a restaurant’s identity is what makes the exposures it faces unique. Whether a restaurateur seeks to be the next “hot spot” or the staple of the town, Unik Insurance will create a program that meets your unique restaurant insurance needs.
Property Coverages to Contemplate in a Restaurant Insurance Program
Restaurants can be responsible for extensive amounts of property. Consequently, they will often require the same fire protection considerations as any large property risk. Bolted down cooking equipment should be insured as a part of the building value not the business personal property value. There is a distinctive difference in the rate charged for the building and personal property.
A power outage at a restaurant can be a huge headache for an owner.
Even a brief outage can prove disastrous. Loss of income and food spoilage are just a few of the issues an owner would face due to a power outage. A basic restaurant insurance policy may not cover loss due to a power outage or failure of other utility services at the restaurant’s premises if the actual failure occurs “away” from the premises. If, for example, lightning were to strike utility equipment or power lines not on the insured premises, there would be no coverage for the loss of business income due to the power outage. Please remember, however, that if the failure of the power lines or utility service results in a covered cause of loss (such as fire), there is coverage for loss or damage from the covered cause of loss. An off-premises power endorsement must be endorsed to most restaurant insurance policies. There is a distinct difference in whether the policy provides coverage for power lines, utility services or both. Unik Insurance will walk you through each specific restaurant insurance coverage available to make sure you are fully aware of how the off premises power endorsement works and the exposure you have to it.Serving Alcohol
The selling and/or serving of alcoholic beverages is a large exposure for a restaurant. The basic general liability policy excludes coverage for most liquor liability exposures if you are in the business of selling or serving alcohol, therefore, coverage must be specifically endorsed to the policy.
Many restaurants today are known for their specialty drinks. A recent trend lends to high prices for specialty drinks which will increase the total revenue for liquor sales. This trend is an important consideration in the restaurant industry because many carriers will not underwrite a risk with more than 50% of their total revenue in liquor sales. It is important to work with an agent who understands how to explain this exposure to the carrier and underwriters.
Do you Deliver or Valet?
Delivery may be incidental or part of daily operations of a restaurant and the insurance exposure lies on whether the employees make deliveries in company vehicles or their own personal vehicles. Non-owned auto coverage is detrimental if employees are using their own vehicles. If, for example, an employee is making a delivery in their own vehicle and gets into an accident, the injured party can place claim against the individual and the restaurant. If non-owned auto coverage is not on the policy, there is no coverage available to defend the restaurant’s interest. It is important to check the motor vehicle report and the validity of the insurance coverage and the limits every employee carries.
Valet Parking is also another consideration that should not be overlooked when considering coverage. Is an outside company contracted to park the vehicles? Does the restaurant have a contract in place to list the restaurant as an additional insured on the valet’s insurance policy?
Crime Insurance Exposures
Due to the nature of a restaurant’s operations and the large amounts of cash that may be on hand, precautions need to be taken to mitigate employee dishonesty.
Tailor a Restaurant Insurance Program to Meet the Needs of Your Exposures
Unik Insurance specializes in analyzing restaurant risk and exposure to provide the most coverage enhanced insurance program to meet and exceed any restaurant owner’s insurance needs at the most competitive market premiums. Restaurant insurance programs need to be specifically tailored to meet the needs of each individual restaurant. Spoilage, food contamination, power failure and liquor liability are just a few of the specialty coverages that need to be taken into insurance consideration. Contact Unik Insurance today to discuss your restaurant insurance coverage needs and exposures
Established in 1936, by Thomas J. Unik Sr., our company has grown to a full service insurance agency that serves the insurance needs of over 12,000 individuals and families and 4200 business concerns in Cleveland, Cuyahoga County and adjacent areas.