A Guide to Insurance for Restaurants
July 25, 2023
Running a restaurant is hard work, but it can also be very rewarding. However, there are several risks associated with owning a restaurant, and it’s important to protect your business with the right insurance.
In this blog post, we will discuss the different types of insurance that restaurants in Louisiana need, as well as some tips for getting the best rates.
Insurance Needs of Restaurants
There are a variety of insurance policies that restaurant owners in Louisiana should consider. The most common types of insurance include:
- General Liability Insurance: General liability insurance is a type of insurance that protects businesses from lawsuits and other financial losses. For restaurants, this type of insurance can help protect you from lawsuits brought on by foodborne illnesses, accidents, food poisoning, slip-and-fall injuries, slander or libel accusations, and other damages that may be caused by your restaurant employees or your overall business operations. General liability insurance can also help cover damages resulting in medical bills and medical expenses incurred by customers.
- Commercial Property Insurance: This coverage protects your restaurant’s physical assets, such as your building, equipment, and inventory, from damage caused by fire, theft, or other disasters.
- Workers’ Compensation Insurance: This is a type of insurance that protects employees from financial losses if they are injured or become ill on the job. In most states, employers are required to carry workers’ compensation insurance. For restaurants, workers’ compensation insurance can be especially important, as there are many potential hazards that employees face on the job. These hazards can include slips and falls, cuts and burns, exposure to hazardous chemicals, and even foodborne illnesses.
- Liquor Liability Insurance: Liquor liability insurance is a type of insurance that protects businesses from financial losses that may arise from the sale or service of alcohol. This type of insurance can help cover the cost of lawsuits filed by customers who are injured after drinking alcohol that was served at your restaurant. It can also help cover the cost of property damage, medical expenses, and other damages that may be caused by intoxicated customers. If you are a restaurant owner who sells alcohol, it is important to have liquor liability insurance.
- Food Spoilage Insurance: This type of insurance covers the cost of food that spoils due to unforeseen circumstances, such as a power outage or equipment failure. It can also cover the cost of food that is spoiled due to mishandling or improper storage.
How Much Will Insurance Cost for Your Restaurant?
The cost of restaurant insurance will vary depending on the size and type of restaurant you run, as well as the unique risks that you face at your location. According to Huckleberry Insurance, most restaurants can expect to pay $500 - $2,500 annually for general liability insurance and around $750 per year for commercial property insurance. Additionally, according to Fit Small Business, liquor liability insurance typically has a premium of $200 - $2,250 per year for bars and $200 to $590 per year for restaurants.
However, there are a couple of things you can do to find the best rate for insurance coverage. The easiest thing to do is to work with an independent insurance agency, like Lewis Mohr, who will shop your policy around to multiple insurance carriers for the best price. Additionally, you can take steps to reduce your risk, such as installing security cameras and having a fire suppression system installed in your restaurant.
Insurance for your restaurant is an important investment for any business owner. By taking the time to get the right coverage, you can protect your business from a variety of risks and ensure that you’re prepared for the unexpected. If you need insurance for your restaurant in Louisiana, please reach out to us via our website or give us a call!