Know properly insure your restaurant.
Restaurants can be valuable neighborhood institutions and should be adequately protected against the common types of loss they face. Because restaurants face a unique set of dangers, there are also unique insurance coverages designed to protect them. Often these protections are packaged into a single policy. Coverage details will vary by state to comply with that state's regulations. Contact your agent or broker to determine all the benefits available in your area.
Building Coverage
Many restaurants own the building in which they operate. If this is your situation, then the building is a valuable asset for your business and should be protected. Property coverage can be settled either as Replacement Cost (RC) or Actual Cash Value (ACV). An ACV policy will typically be less expensive, but will depreciate the damaged items based on age and condition.
Tenant Improvements
You may still need to insure part of the building structure even if it is owned by someone else. If you have added anything permanent which would have to be left behind if you change locations, you will need to insure those things, since they will not likely be covered under your landlord's policy.
Contents and Inventory
It may seem obvious to insure your permanent contents like dishware and tables, but consider also insuring your food inventory. If the food spoils as a result of a covered loss, you will lose money replacing it. Food spoilage coverage is often available on restaurant insurance policies for this reason.
General Liability
Like all businesses, yours should have general liability protection. This will cover injuries to customers while on the premises as well as other legal costs for which your business is found liable. Typically this will come with a smaller "no fault" sub-limit for minor customer injuries.
Liquor Liability
If your restaurant serves alcohol, you will need special protection for legal issues arising out of the alcohol consumption. If your customer causes a fatal car accident after consuming alcohol at your restaurant, for example, your business could be found responsible. Many insurance companies will mandate this coverage when alcohol is served.
