Business ownership is something that people usually look forward to, but few people understand the risks that come with running a business. There is the risk of fire damage, lawsuits, vandalism, theft, burglaries, low business, natural disasters and many others. Business owners need to protect their enterprises from these and other risks that businesses face on a daily basis. By purchasing insurance policies from Smart Business Insurance, business owners can be assured of avoiding all the liabilities that may arise in the day to day running of the business. If you own a shop, cafe, bar or restaurant, it is imperative you purchase insurance policies to protect your enterprise.
Types of Insurance Products for Cafes, Bars, Restaurants and Shops
i) Business Property Insurance
This is perhaps the most important insurance coverage that every business owner needs to have. Shops have a lot of inventory that can be destroyed in a fire. Bars, restaurants and cafes, on the other hand, have invested heavily in furniture, fittings and equipment that can be damaged in a fire or any other type of disaster. The interior design work that cost a lot of money can also be destroyed in a disaster. Business property insurance, also known as commercial property insurance, provides coverage for all tangible business assets. When disaster strikes, therefore, you can be assured of sufficient compensation for your losses to ensure you can go back to business as soon as possible.
ii) General Liability Insurance
The only way to make money in business is to serve the public. Unfortunately, a customer can get injured while in your cafe, shop, bar or restaurant. For instance, they can slip and fall. They can also be physically attacked by a third party while in your business premise. Food poisoning is also not uncommon in bars, restaurants and cafes, so you should keep this in mind. By purchasing a general liability insurance policy that offers the widest liability coverage, you can be assured of getting protection from the risk of lawsuits. Over the years, many businesses have had to close shop after being driven into bankruptcy by injury lawsuits. This is because legal costs are usually high, and the compensations awarded by courts are usually financially-crippling. Fortunately, a public liability insurance policy provides coverage for legal fees and compensation awarded by the court. Therefore, you will not need to use your own funds or business working capital to pay legal fees or compensate the plaintiff if you lose the case.
iii) Workers Compensation Insurance
Your employees are the most prized assets in your business. They serve customers and ensure you make money from your investment. Without them, your business operations will be paralyzed. Unfortunately, the same employees can become the biggest liability in your business if they get injured. This is because there are medical bills you will have to pay. Similarly, you’ll still have to pay the injured worker normal salaries and wages until they can return to work regardless of how long it takes. To ensure your employees remain an asset in your business, be sure to sign them up for workers compensation insurance. When a work-related injury occurs, workers compensation insurance will not only sort out all the medical bills related to the injuries sustained at work, but it will also pay temporary disability benefits. This will help to shield your business from losses. Additionally, workers compensation insurance will prevent the worker from filing an injury lawsuit against you in court.
iv) Business Income Insurance
It is crucial you shield your business from the adverse effects of a recession, geopolitical issues and any other issue that may lead to reduced business income. The best way to do this is to purchase business income insurance. This type of insurance will help to ensure that your business is always able to meet its overhead and payroll costs. In case your revenues take a dip, the insurance company will pay the difference to make sure your business is sustainable in the long run.
v) Commercial Vehicle Insurance
Most cafes, restaurants, bars and shops have a delivery van or truck. These vehicles usually carry a lot of high-value goods. Since these vehicles can be involved in an auto accident, business owners should purchase commercial vehicle insurance to protect both the vehicle and goods it carries. This will help shield your business from huge losses that may result from the accident.
While there are many other important types of insurance policies that business owners should buy to protect their businesses, these 5 are the most important. When purchasing an insurance policy, the following are the most important factors to consider:
1. Liabilities Covered
Regardless of the insurance policy you’re purchasing, it is crucial you check the list of liabilities covered because you want an insurance policy that protects your business from all the common liabilities. Also check the exclusion clauses to confirm what is not covered by the policy.
2. Coverage Limit
The level of liability coverage matters a great deal. You do not want to purchase a policy that offers insufficient liability coverage because you will be left exposed when an incident occurs. The ideal policy should offer sufficient liability coverage. By consulting an insurance broker or a business consultant, you will be able to determine the level of liability coverage you require.
3. Premiums
The cost of insurance matters a great deal. While you may want a policy that offers the best liability coverage, you also want to get value for money. For this reason, you will have to compare premiums hand in hand with the level of liability coverage offered by a policy. Please note, however, that cheap policies can be costly in the long run. Imagine discovering that certain liabilities are excluded from the cheap policy you purchased. You will have to spend your own money to pay for those liabilities if they arise. Therefore, special attention should be given to the types of liabilities covered by a policy and coverage limits before premiums can be considered.