Understanding Restaurant and Cafe Insurance

Insurance Blog

When you have a food industry business, you should get a restaurant and cafe insurance in the case of a fire, theft or flood. This type of insurance can help cover the income you lost, and you will not suffer huge losses even if you had to close temporarily. This will give you enough space and time to restore your restaurant to its previous state. This is similar to if a customer or supplier was injured in your restaurant, and they sued you for damages; the insurance will cover you for this as well.

What the Insurance Covers

• Liability for the public and products is part of the insurance coverage. The restaurant and cafe insurance will cover legal liabilities to third parties where bodily injuries or property damage occurred as a result of negligence or an accident.
• The product and liability insurance will also take care of the company's liability for injuries or losses caused by any defect or product malfunctions. This can be either manufactured or sold.
• The property insurance will protect you against loss or damage from fire and dangers. You are also protected against theft, accidental damage, burglary or glass breakage.
• Business interruption insurance covers income loss in case of a disaster.
• Machinery breakdown is also covered, which means that any damage to machinery due to a breakdown or boilers damage from an explosion are covered. 
• You may also come across tax investigation, which is for the costs that were incurred by the restaurant's accountant or tax agent after an audit.

Types of Restaurants That Get Insured

Restaurant and cafe insurance provides insurance for coffee shops, bakeries, deli, cafes and bistros, pizzerias, fine dining and family style restaurants. They have a wide scope such that almost all kinds of restaurants can get insured.

Benefits

A restaurant and cafe insurance will benefit your business in a lot of ways. Your insurance will cover building levels and liability. You do not have to pay for any employee liability. They have reasonable fees and low policy excess. You can avail yourself of optional covers like rental income loss and unoccupied property. Your legal expenses will be covered, which means that you will not have to cover the lawyer's fee. The insurance will also pay for the waitresses and barristers, court fees and opponent costs in case it was against you.

Now that you have an understanding of restaurant and cafe insurance, you now know why you need to have it for your restaurant business.

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22 May 2019