Business Insurance for Restaurants

Business Insurance for Restaurants image
Restaurants can be surprisingly risky places, both for employees and patrons. Hot oil and fires are a constant risk in the kitchen, while servers and waiters can easily slip and fall due to an uncleaned spill. If food goes bad, your patrons--and your business' reputation--could be put at risk. Restaurant Insurance helps protect you from the costs associated with such risks.

About Restaurant Insurance

While restaurants are not typically difficult to insure, they do face plenty of unique risk exposures. Restaurants can get crowded, hot items are regularly being moved about, and food safety is a critical issue. All of these elements combine to make the restaurant business a surprisingly risky one. If an accident happens, whether it involves an employee or a patron, then your business could be held liable. Restaurant Insurance helps protect against the cost of claims and damage.

What Coverage is Included in Restaurant Insurance?

Restaurant Insurance generally includes coverage that most small business owners find useful, such as:
  • Workers' Compensation
  • Cyber Liability
  • Businessowners Policy
  • Disability
  • Employment Practices Liability
Additionally, there may be unique risks, such as food liability or liquor liability, that your restaurant will need to address. Our reputation as a leader in bespoke insurance products will ensure that your restaurant has the coverage it needs.

Workers' Compensation Insurance for Restaurants 

In the restaurant industry, there's no shortage of risks your employees face on a regular basis. Bars, caterers, and other food service professionals often have to balance the responsibilities of preparing food in a safe manner with the need to assist customers as quickly as possible. An employee can easily become injured while working with a hot surface, handling knives and other sharp utensils, or even while walking on a freshly mopped floor. AmTrust and our appointed agents can help restaurant owners find a workers' comp policy and coverage limits to help safeguard your business against the high costs that can be associated with workplace accidents and injuries.

Because of the quick pace of business in restaurants, employees are all-too-often subject to split-second accidents. Even if you've implemented strong safety protocols, it's not always possible to prevent a mistake from happening. If one of your workers becomes injured at your restaurant, workers' compensation can help cover his or her medical expenses. In most cases, workers' compensation will also compensate the injured employee a portion or his or her regular income during the recovery process.

Carrying this type of insurance policy can even help you avoid lengthy litigation should an employee become hurt or sick on the job. The combined benefits that workers' compensation offers to restaurant owners are invaluable, not to mention that most states require all businesses with employees to carry some form of workers' comp.

What Does Workers' Compensation Insurance for Restaurants Cover?

The way you run your restaurant is unique, and your workers' compensation insurance plan should precisely reflect your risks and exposures. There are a few basic things workers' compensation tends to help cover, including workplace accidents, injuries, and illnesses. For example, workers' comp could help cover costs related to the following scenarios:
  • When an employee becomes ill after being exposed to improperly cooked food
  • When an employee has an allergic reaction to an ingredient you use
  • When an employee experiences a grease burn while cooking
  • When a server suffers from shoulder strain while transporting food or heavy objects

Does Workers' Compensation Insurance Cover Auto Accidents?

If your restaurant caters or offers a food delivery service, the potential for your employees to suffer an accident is magnified. In most states, workers' compensation can cover the majority of accidents or injuries that are suffered from a job-related activity, regardless of if the incident occurs at the workplace or not. Keep in mind, however, that the coverage may only apply to employees who are traveling within your state, and you may still be required to carry a separate commercial auto policy for any vehicles owned, borrowed, or leased for work-related activities.

What Additional Insurance Coverage Should I Consider for My Restaurant?

In addition to workers' compensation, here are common types of insurance coverage for restaurants that can help keep your business and employees protected:

Coverage for Restaurant Property

Fires are an especially common risk for restaurants, especially in the kitchen. If a fire does happen, it may not only cause significant property damage, including to costly equipment and appliances, it may also lead to your restaurant having to close down temporarily. As part of our Businessowners Policy, you will enjoy coverage both for the cost of repairing damage to your property due to fire and other risks and for the costs of business interruption.

Protection Against Claims

Your restaurant is open to the public, which means you are responsible for your patrons while they are on your premises. Unfortunately, not every hazard can be eliminated entirely, especially in such a busy environment as a restaurant. Patrons, just as much as employees, are at risk of slipping and falling if dangerous spills are not cleaned up promptly.

Furthermore, a patron may claim that they got sick from food at your restaurant that was spoiled or not properly prepared. These injuries can lead to claims brought against your business, but General Liability coverage is designed to cover you for out-of-pocket expenses for most third-party claims.
Restaurants also typically have a high turnover rate, which makes the risk of an employment-related dispute high. With Employment Practices Liability Insurance, your business will be covered in the event that a disgruntled employee brings an employment-related claim against you.

How Can I Purchase Restaurant Workers' Compensation Insurance?

Ready to protect your restaurant with workers' compensation insurance and other coverage? Connect with an AmTrust appointed agent today to get a quote. 

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