Not having an insurance protection plan for your restaurant can create chaos if something goes wrong. It is important to be prepared for contingencies and let your business be at peace at the time of mishaps. Buying a restaurant package policy provides safeguard against the turmoil of financial uncertainty.
Hospitality business faces multitudes of risk. Your employees or visitors might get injured, your business could suffer due to earthquake, fire etc. Thankfully, you can get a comprehensive risk solution by availing restaurant package insurance policy.
A restaurant package insurance covers your assets, building, employee(s), accidents, third-party lawsuits etc. Buy a commercial umbrella insurance and ensure financial safety of your business against mishaps.
Below are the key things which you should keep into consideration while shopping for insurance for your restaurant:
1. Protect your building: Be it a fine dining restaurant, pub, bar, bakery, fast food service or catering service, restaurant package policy fulfils the need of every small business. The main area of operation in the restaurant business is kitchen which has various probable risk exposures like fire. It is important to protect your building and its content against fire and other perils. If you have multiple locations, it is important to cover all your risk locations. Plate glass and signage can also be covered by the policy. Risk of theft and burglary is also covered.
2. Protect your employees: Include group personal accident insurance in order to get coverage against death or disability caused to your employees due to sudden, unforeseen, uncontrollable and unexpected physical event caused by external, violent and visible means. An employer should also include workmen compensation cover in the restaurant package policy to ensure the restaurateurs against their liability toward employees under the Fatal Accidents Act 1855 / Workman Compensation Act 1923 and under common law in respect of accidental death or injury sustained arising out of and in the course of employment.
Please See: Risk Mitigation with Restaurant Package Policy (Infographic)
3.Protection against third-party lawsuits: The preparation and serving of food create an environment in which either employees or patrons could be injured, for example, by a sharp knife, hot coffee or a slippery floor. It is crucial to cover legal liability to be paid to third parties for bodily injury or property damage including claimant’s costs, fees and expenses incurred anywhere in India. Defence cost such as lawyer’s fees and settlements are covered under restaurant package policy.
4. Additional Protection Cover: One should include additional protection by availing add-on covers such as Machinery Breakdown insurance, cover for the consequential loss of profit, burglary and theft cover etc. Paying an additional amount can provide total cover for your business. If your restaurant provides alcohol services, buying liquor liability insurance extension is a necessity as a drunk patron could cause a wreck on the way home, resulting in you being sued.
Read About: How can I buy Restaurant Package Policy?
Case Study: A restaurant operates in multiple locations. The restaurant faced a havoc mishap, a major fire started in kitchen resulted in extensive damage and caused financial distress for the restaurant owner. As the restaurant owner did not buy any insurance plan against the probable risk exposures, all the loss is borne by the restaurant owner. The event caused loss of income and the owner has to shut down the business. The repercussions of such an event cause financial fragility.
Hence, it is important to buy a restaurant package policy in order to have financial security. Have enough cash ready to meet unexpected expenses as unforeseen incidents do not cooperate. It is better to be prepared and be on the safe side by availing restaurant package policy.
