Restaurant owners need to make sure that they purchase an appropriate restaurant insurance policy to protect their livelihood. The following are six mistakes you should avoid when you purchase restaurant insurance.
Not carrying out a detailed risk assessment
A risk assessment is an important first step in insuring your restaurant. Doing a risk assessment will make you aware of all the financial risks your restaurant is facing that you need to be protected against. If you neglect to perform a risk assessment, you won't be adequately informed when it comes to the risks you need to be protected against through restaurant insurance.
Buying from a company that only sells general business insurance
The best thing to do when you're insuring a restaurant is buy from an insurance provider that specializes in insuring restaurants. A basic commercial insurance policy isn't going to be uniquely tailored to the specific insurance needs of a restaurant business.
Failing to analyze the risks of your location adequately
Location is an important consideration when it comes to a restaurant's risks. One of the most important factors to consider when it comes to location is flood insurance needs. Flood insurance probably won't come standard in a restaurant insurance policy and will require additional coverage. You should also consider natural disaster and power outage risks when evaluating location risks for your restaurant.
Not updating restaurant insurance coverage over time
Restaurant businesses often change over time. They can grow or begin offering new menu options and products. They can also expand to new locations. It's important that your restaurant insurance policy changes over time to keep up with changes in your restaurant business. At least once annually, you should revisit your restaurant insurance policy and make any necessary updates to ensure you've got adequate coverage.
Neglecting to minimize financial risks with updates to your facilities and practices
Buying insurance isn't the only thing you should do to mitigate financial risks. It can often be very cost effective to invest in your business with safety and security updates to help minimize financial risks in addition to purchasing restaurant insurance. Have your staff members undergo safety training to maximize safety at your restaurant. You can also invest in updates like security alarm or fire alarm installation to improve the security of your restaurant.
Buying workers compensation and commercial auto insurance from different providers
Bundling numerous types of insurance with the same provider is often a good way to minimize costs. Providers of restaurant insurance policies will often offer a discount if you buy your workers compensation and commercial auto insurance from them.
Reach out to a restaurant insurance company to learn more.