What property insurance coverages do restaurant policies come with?
Restaurants also have access to a number of property protections. Some common property-related protections that are normally available include:
- Commercial Building Coverage: May provide coverage for buildings and other constructions owned by a restaurant.
- Commercial Contents Coverage: May provide coverage for equipment and other items, often including POS systems, tables, artwork, kitchen shelving, refrigerators, freezers, ovens and similar items.
- Tenants Betterment Coverage: May provide coverage for enhancements made to a rented restaurant’s kitchen and dining spaces.
- Food Contamination Coverage: May provide coverage for ingredients, prepared dishes, and beverages against contamination or spoilage due to catastrophes.
Exactly what perils these property coverages protect against depend on a given policy’s terms and conditions.
Restaurant owners and managers should review all of a policy’s coverages carefully with a specialized insurance agent. A specialized agent will have the expertise necessary to evaluate coverage needs, and explain which are the most appropriate coverages to look for.
What type of auto policy do restaurants need?
Restaurants that use vehicles in the course of their normal operations generally need to make sure their vehicles are properly insured. This can include everything from owner’s cars that are used for buying ingredients, to box trucks used for regional deliveries. How vehicles are used largely determines what type of auto coverage is needed:
- Owner’s Vehicle: When the owner’s vehicle is used to buy ingredients from grocery stores, the owner’s personal auto policy could be sufficient. The policy might already provide the needed coverage, or it might offer an endorsement that can.
- Delivery Drivers: When employees use their own vehicles to make deliveries (e.g. pizzerias), hired and non-owned auto insurance may provide liability coverage that sufficiently protects the restaurant. Using an online platform for deliveries may not require this or any other additional auto coverage.
- Delivery Trucks: When a restaurant-owned truck is used for deliveries, a commercial auto insurance policy is likely required. These are the policies most often used to insure commercially registered vehicles.
- Food Truck: Restaurants that have a food truck might need a food truck insurance policy, which may cover the truck and other risks associated with this business model.
- Catering: Restaurants that cater off-site events might need a catering insurance policy, which may cover vehicles used for catering and other risks.
A knowledgeable insurance agent can help restaurants make sure any vehicles they use are insured with the right type of policy.