list of the benefits of insuring a food outlet
  • A Chinese restaurant
  • Meals in a cafeteria
  • Eating in a Thai restaurant
  • A wine waiter serving diners in a first class restaurant
  • Staff working in a restaurant kitchen
  • Diners eating with chopsticks in a Chinese retaurant

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Your dream of owning your own restaurant has finally become a reality. You have an excellent staff, what you believe is the best food in town, and a location that is sure to bring in customers by the boatload. As you prepare yourself to open your doors and unleash your culinary artisanship into the world, you may want to stop and think about one last aspect of your business. Have you purchased restaurant insurance to protect yourself and your customers?

Do You Really Need Restaurant Insurance?

Even if you know nothing about insurance and the very word lulls you to sleep, it is imperative that you consider it for your business. A restaurant insurance policy will protect you if certain unfortunate incidents happen that are either unforeseen or out of your control.

For example, depending on your location, you may be at a higher risk for sustaining flood or fire damage to your establishment. You certainly do not want to pay for repairs or replacing items out of pocket, so restaurant insurance can ensure that you will have the necessary funds to rebuild your restaurant. Additionally, a customer may report food poisoning that they claim was the result of your highest rated meal or an employee may suffer an injury at work. These individuals will most likely take legal action and seek compensation for hospital bills, doctor bills and even lost wages.

diners enjoying dinner in a top class bistroThese are a few of the most popular reasons why you should purchase restaurant insurance, although the list does not end there. Some small business owners feel that insurance is a waste of time because the risk of something bad happening to them, their employees or their customers is relatively small. However, if you own a restaurant and you interact with the public on a day-to-day basis, it is even more important to protect yourself against a relatively large number of risks, whether you know them or not.

Keep in mind that it does not matter what type of restaurant you have. Restaurant insurance covers all establishments including take-away, cafes, pubs and fast food outlets. You will want to research individual policies and insurance companies before making your decision, but there are a few options to keep in mind when you are shopping for an insurance policy.

What Types of Restaurant Cover are Available?

The most important type of insurance that you can purchase for your restaurant is public liability insurance. Depending on the size and location of your establishment, you could see hundreds of customers each day. What happens if one of them falls and injures himself on your floor or claims that he got food poisoning because your food was not cooked properly? Fortunately, if you have purchased public liability insurance, you will be covered and provided with compensation to pay for his legal costs, medical bills or any other damages he may claim.

Additionally, since you are most likely not running the restaurant by yourself, you will want to research employer’s liability insurance. You have chefs, greeters and servers all working under you to ensure that your restaurant runs smoothly. As an employer, it is your responsibility to provide a safe, clean and healthy working environment for your employees. All employers must have at least £5 million in employer’s liability insurance, as mandated by UK law. Your policy will protect you if an employee slips and falls, claims that he developed an illness due to the working conditions or lifts heavy equipment and strains himself.

While some employers lease their buildings, others are able to purchase the property with their own money. If you have put your sweat, tears and investments into your establishment, you may want to consider buildings cover that will protect your property against floods, fire or subsidence. These unforeseen occurrences could destroy your business if you do not personally have the monetary means to rebuild your restaurant after damage has occurred.

Along these lines, if you have invested in the fittings within your restaurant, you may want to purchase contents insurance to cover the cost of repairing or replacing items. Stock cover is also available to compensate you if your food, beverages or other perishables or contents are stolen or destroyed.

As a restaurant, you most likely keep a significant number of cash and cheques in your establishment. However, if an employee steals money from your till, you are robbed or if the money becomes lost or damaged, research different types cover that will reimburse you for your finances to ensure that you do not miss your investment.

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Copyright Carole Fletcher and 2012