How Does Fine Dining Restaurant Insurance Work?

If you own a restaurant, you know your industry faces many significant insurance risks which could cripple your business if you are not properly insured. The pricing for a policy varies because every restaurant has different possible exposures, different values, and different equipment that needs coverage. Fine dining restaurants may need additional policies not covered under a standard restaurant policy. Insurance policies for a restaurant are customized to fit the needs of the establishment.

Here are the types of coverages typically found in a restaurant:

General & Product Liability

When a customer slips and falls on a wet floor in the dining room, general liability insurance provides protection against lawsuits arising from medical bills.

There is always a possibility a customer will claim they got sick from food served at your establishment. Product liability insurance protects your business in the event this occurs.

Liquor Liability Insurance

Most fine dining establishments serve alcohol. If one of your customers who is intoxicated after drinking at your restaurant tries to drive home and gets into an accident, your restaurant could be held liable for the damages.

Excess Liability Insurance

Fine dining restaurants may be required to have liability coverage for up to $5 million. If the general liability coverage is limited to $1,000,000, an excess liability insurance policy can cover the difference.

Food Spoilage

If the power goes out due to an ice storm or bad thunderstorm, the food in your refrigeration unit could go bad. This inventory insurance protects your business if the food inventory goes bad.

Employment Practices Liability Insurance

Some employees who feel they were wrongfully terminated due to discrimination, retaliation, sexual harassment, or other reasons could file a lawsuit against the restaurant. This policy provides protection for these scenarios.

Commercial Property

If the oven in the kitchen causes a fire, the building and the content would be covered with commercial property insurance.

Workers Compensation

Work-related accidents or medical conditions from job tasks would be covered under workers compensation.

Sanford Insurance provides coverage for fine dining restaurants and other food establishments. Contact us today to learn how we can help.