We understand many restaurants can operate on a small margin of profit. One of the areas the restaurant owner can look at to reduce their overall operating cost is to shop the insurance for restaurant owners by talking to an independent agent at Makar Technique Insurance Agency who will work with you to meet your specific needs and budget.
Coverage Options Under Insurance for Restaurant Owners in West Hollywood:
Here are some different insurance coverage options that a restaurant owner may need:
- General Liability Coverage
The West Hollywood restaurant owner must carry General Liability insurance. This protects you from third-party liability claims that can result in bodily injury and/or property damage as a result of your operations. Aside from a slip and fall claim, you will be insured if someone becomes ill and claims it was something they ate at your restaurant, which caused them to be sick. The standard limit of liability is $1,000,000 each occurrence and $2,000,000 in the aggregate, but some companies will offer higher limits of $2,000,000 each occurrence and $4,000,000 in the aggregate for a small additional premium.
- Liquor Liability Coverage
If you serve alcohol, you need liquor liability coverage, which is a separate limit of liability on your policy. The insurance premium for this coverage is based on your annual sales of alcoholic beverages. If you are a fine dining establishment, you will be given monetary consideration on the rate where the alcohol sales are derived from the sale of fine wines.
- Commercial Property Coverage
The business personal property and build-outs in your West Hollywood restaurant need to be insured against loss. One of the areas that do need close attention is coverage for valuable papers. All restaurant owners’ insurance package policies contain a sublimit for this coverage, but it might not be enough. This portion of the insurance policy will pay for you to recreate your recipes should an insured loss destroy your records.
If you own your building or you are under a triple net lease agreement, then coverage for the real property also needs to be purchased.
- Coverage for Lost Business Income and Extra Expenses
In the unfortunate event of an insured loss, the policy will include coverage for both your lost business income and your extra expenses incurred as a result of the damage. You should maintain a lost business income limit that will cover you for at least 12 months. Once your business is up and running, you will want to announce that and get your customers back. The extra expense portion of the policy will pay for you to advertise that you are back in business.
- Workers’ Compensation
Workers’ Compensation Insurance is required if you have employees.
- Non-Owned Automobile Liability Coverage
If your West Hollywood restaurant offers delivery service and your employee is driving his or her own vehicle to do these errands purchase Non-Owned Automobile Liability to protect you in the event your employee is involved in an accident, and they are legally liable for injury or damage to a third party. You can be held liable for these same damages since they were on company business when the claim occurred. The Non-Owned Automobile Liability will protect you and can usually be endorsed to your policy at a very affordable rate.
Get Insurance for Restaurant Owners Policy from Makar Technique Insurance
Contact your insurance professional at Makar Technique Insurance Agency to design an insurance policy for restaurant owners that will fit your needs and your budget.