What is Restaurant Insurance?
Establishing a restaurant requires a sizeable investment of resources, and those resources should be safeguarded against potential risks. Restaurant insurance policies help protect restaurants in Massachusetts from many of the risks they’re exposed to.
Restaurant insurance is a particular type of commercial insurance that’s uniquely designed to meet the risk mitigation needs of food service establishments. Policies generally have a variety of restaurant property and restaurant liability insurance protections that work together to create a web of protection, and restaurants frequently can adjust the exact coverages in a policy to better suit their particular situation.
What Massachusetts Businesses is a Restaurant Policy Right For?
Many food service establishments may be well-served by a restaurant policy, but this type of insurance isn’t right for every business that serves foods or drinks. In most cases, this insurance is good for:
- Sit-down dining establishments
- Counter-service dining establishments
- Fast-food establishments
- Cafes and coffee shops
- In-store eateries
Businesses that might have similar coverage needs but actually be better served by another type of policy include bars, nightclubs, caterers and food trucks. Policies that are specialized for these businesses often have slightly adjusted protections that have been tailored to the respective business.
Any business that’s unsure which exact type of policy is appropriate for their situation should speak with an insurance agent who specializes in restaurant policies. A specialized agent will know how the coverages included in a restaurant policy would apply in a given situation, and they’ll likely be familiar with the protections available through other policy options.
What Coverages Are Offered by Restaurant Policies?
As mentioned, restaurant policies normally come with a combination of restaurant property and restaurant liability insurance protections.
A few property-focused protections that policies frequently make available are:
- Commercial Property Coverage, which may cover company-owned equipment and buildings
- Tenants Betterment Coverage, which may cover improvements made by a company to a leased space
- Equipment Breakdown Coverage, which may cover certain unexpected equipment malfunctions
- Food Contamination Coverage, which may cover certain causes of contamination to ingredients or prepared foods
Some restaurant liability insurance protections that policies often offer are:
Do Restaurants Need Auto Insurance?
Restaurants that use vehicles to deliver food off-site, whether to people’s homes, places of business or event locations, generally need auto insurance. The type of auto coverage they need depends largely on what vehicles are used.
Standard commercial auto insurance is typically appropriate when restaurants own the vehicles they use. For example, establishments with a sit-down eatery and a van probably need this coverage.
Hired and non-owned auto insurance is normally reserved for situations where employees’ vehicles are used to make deliveries. Pizza places, for instance, commonly consider this coverage.
What Factors Influence Restaurant Policies’ Premiums?
Insurance companies look at many factors when setting premiums for restaurant policies. Some of the items that can influence how much a policy costs include:
- Where an establishment is located
- How large an establishment’s facilities are
- How many sales an establishment does
- What foods and drinks are offered
- What coverages and limits are selected
- Whether the establishment has a history of filing claims
For help comparing different insurers’ rates, restaurants should consult an independent insurance agent. Independent agents aren’t linked with any one insurance company, which gives them the freedom to show clients policies from multiple insurers in the state. This makes comparing coverages and rates easy.
How Can Restaurants in Massachusetts Get Restaurant Insurance?
For help finding restaurant insurance that’ll provide your Massachusetts establishment with solid coverage, contact the independent insurance agents at Charles River Insurance. Our agents have assisted many restaurants in the state, and they have the freedom and expertise necessary to get your business the right policy.
