For most owners, restaurant insurance is fairly straightforward. You have a restaurant in one single location, so you get an insurance policy that fully covers your operation, and then you're all set. In the past, this strategy worked perfectly for restaurant owners all over the United States.
Times have changed. Recently, more restaurateurs have expanded their operations. Today, it's common for restaurants to have multiple locations, offer delivery services, and operate a mobile location out of a food truck. Each one of these instances requires different types of insurance policies – on top of the typical insurance a restaurant carries.
Unknown to Most
Most restaurant owners have no idea that expanding into the food truck industry could impact their insurance needs. As their new vehicle is mobile and therefore not in a controlled environment like their restaurant, the owners will need to purchase commercial auto, workers' comp, general liability policies and more – all on top of his or her general restaurant insurance policy.
If someone delivers food in a company-owned vehicle that falls under the company's commercial auto insurance plan, then there are no issues. However, if a delivery driver uses his or her own automobile to make a delivery and has an accident along the way, the restaurant owner is not covered at all, unless a non-owned and hired auto insurance policy has been purchased.
Many restaurateurs have no idea they can be held accountable for data breaches occurring during credit card processing. Even if you use third party processing, your restaurant can be held accountable if a breach occurs. Third party processors explicitly state they are not responsible for breaches.
Legislation for data breaches puts the onus directly on the business – in this case, restaurants – that collected the data. To make matters worse, research has found that restaurants are the most targeted industry for hackers to attack and steal data from. It is essential to look into insurance to protect your restaurant from a breach in today's day and age.
Foodborne Illness Issues
Over 7,000 cases of foodborne illness outbreaks have been traced back to restaurants since 1998, and many restaurants have found it near impossible to bounce back after an outbreak. Either the Department of Health shuts you down, or the publicity is so bad you don't have any customers left. To protect your business against these horrible outcomes, a restaurant owner can purchase trade name restoration insurance, which covers losses that traditional policies won't cover in these situations.
Getting the Coverage You Need
Restaurant owners face an uphill battle when insurance comes into question. With all the different facets of the industry, it can be difficult to find, or even know, what type of insurance policies you may need to keep your food service business afloat over the long haul.
Due to the unique nature of the industry, it's absolutely imperative that any restaurant owner gets in touch with a reputable insurance agent. Speaking directly with a good agent and detailing exactly how you do business will allow him or her to help you avoid hassles down the road.
If you have questions about how to properly insure your restaurant contact Skyline Risk Management, Inc., (718) 267-6600 to voice your concerns.