What does a restaurant damage insurance policy cover?

Introduction

As the property owner, you have to be extra careful about its maintenance and take extraordinary measures to evade damage. If you are the restaurant owner, it is your responsibility to buy insurance to ensure its security. In most cases, the property and liability coverages are attained by the restaurants through business owner policy. However, you shall have to spend on repair works and renovations in case of any property damage, which will drain you financially. However, if you have insurance, it will support you with the claim money. You should hire a Restaurant Damage Insurance Claim Attorney in Florida from Louis Law Group to file for the insurance claim and negotiate on your behalf. If any complication arises and the insurance company denies the payment of the claim, the attorney will be able to handle the case with professional expertise.

The different types of restaurant damage insurance policies are :

Property Insurance

In case of fire breakout or vandalism in your restaurant, the impact might be immensely disastrous and might require a considerable amount of repair works. In this case, the property insurance claim can provide coverage for such incidents. However, it does not include any natural disasters like hurricanes or earthquakes. To attain coverage for such natural disasters, you need a separate policy. The restaurant must have an insurance policy as it is necessary for mortgaging the property.

General Liability

The restaurant damage insurance policy that provides coverage for any form of physical injury or damage inflicted on the property due to an accident is known as the general liability policy. It also offers protection from claims based on the quality of the food product. If the food of the restaurant causes any illness, this policy saves the restaurant from the clients. Thus it covers product liability.

However, for the food served in the restaurant to be considered a product in this policy, it should be accompanied by an endorsement named ‘Product/Completed Operations Hazard Redefined. The purpose of this endorsement is to cover the food consumed in the premises of your restaurant to be taken under the products/completed operations coverage.

Liability policy includes the coverage named Damage To Premises Rented To You. It protects any claim made by the landlord lending you the space for your restaurant. If your actions accidentally cause any damage to the rented property or cause a fire breakout, the landlord might sue you. However, this policy can protect you from such untoward situations.

In the parking lot of the restaurant, if you inflict any damage to the customers’ vehicle, this liability policy shall not provide any protection against it. Therefore, such damage coverage is excluded from the liability policy. However, if you purchase garage keepers liability coverage, you will be able to attain insurance in such damage cases.

Other liability coverages are necessary for the context of restaurant damage insurance policy. Such policies are as follows:

Liquor Liability: The claims related to bodily injury or property damage are not included in general liability. Suppose any harm is committed to any person by intoxicating him within the restaurant premises; in that case, the restaurant shall be held responsible for it. The restaurant must buy liquor liability insurance to evade such situations if the restaurant serves or sells liquor.

Employment Practices Liability: The restaurant must also buy employment practices liability to protect the business coverage. If the restaurant employees sue the owner for acts of discrimination, violence, or harassment in the workplace, this liability will cover the restaurant. It is crucial to get this coverage as it is not included in the general liability insurance policy.

Commercial Auto Insurance

Many restaurants also have food delivery services, and for this purpose, they use vehicles. Therefore, the business auto policy must also include such vehicles owned by the businesses. Again the policy should also provide coverage to the car hired for the delivery services.

Umbrella: The restaurant also requires a commercial umbrella to cover other essential aspects excluded from the general liability and commercial auto policies. Such claims include:

Equipment Breakdown: In the restaurants, several machinery and equipment are required for preparing food like boilers, food warmers, steamers, freezers, ice makers, refrigerators, etc. 

These machines are susceptible to damage by any steam explosion or mechanical breakdown, or electrical glitch. Therefore, you require equipment breakdown coverage in these cases to provide coverage to such damages. Restaurants can also apply for including other aspects to this policy like spoilage coverage, added expenses, or loss of income.

Electronic Data Processing: The restaurants also use computers for data storage and for creating, sending, saving important documents. Restaurants also use electronic food ordering and booking systems. The property policies generally provide limited facilities for electronic equipment and data. Thus, you must also invest in electronic data processing coverage to protect the valuable electronic documents of your restaurant.

Employee Theft: The property policy does not include the cases of theft by the restaurant employees. In many cases, the employees steal cash or food from the restaurants. And it has a detrimental impact on your restaurant business. So to ensure the restaurant’s protection, you must buy employee theft coverage.

Sewer Backup: The typical property policy in a restaurant does not offer any coverage for the sewer backup. Any blockage and the sewer water backflow into your restaurant will create a mess, and the place will become unhygienic for preparing food and consuming it. It will also negatively impact business. So you must get sewer backup coverage for your restaurant.

Additional Expense: If any severe damage to the restaurant requires immediate renovation, you might have to temporarily desert the restaurant location and rent a new place for temporary function from that location or hire new pieces of equipment. You shall have to invest in additional expenses. For attaining coverage for these added expenditures, you need to buy extra expense coverage.

Peak Season: If the restaurant shoulders greater responsibilities during a particular season, in those seasons, the property is more vulnerable to any form of damage or accident. So to ensure the protection of the property while handling added work pressure, you must invest in this coverage as well.

Conclusion

 The restaurant damage insurance policy has to cater to several aspects to ensure its safety and smooth functioning. As the owner, you must be cautious about these aspects and buy the policies after thorough consideration. In addition, you need to file for a damage insurance return in case of any unfortunate incident or severe damage.  As per this Lawyer Roll article, it is best to hire a Restaurant Damage Insurance Claim Attorney to attain professional guidance. He can handle the case with expertise to guarantee a maximum return.