restaurant insurance

What Insurance Coverages Does a Restaurant Require?

The restaurant industry is a multibillion-dollar economic driver, serving millions of guests each year in the United States alone. Restaurant owners face unique and specific risks that are inherent in the industry; other industries do not have similar risk exposures. Unfortunately, many of these risks are beyond the control of restaurant owners and managers, necessitating the protection of Utah restaurant insurance. What specific coverages are needed by restaurants in the state of Utah? In this guide, we will explore five essential coverages to protect restaurant assets from losses.

Common Restaurant Risks

A leading restaurant industry service provider has studied the most common risks to restaurant operations. These exposures have the potential to cause expensive damage or loss, not only to the restaurant facility itself, but also its business prospects and reputation. Common risks include:

  • Slips and falls
  • Cuts and burns
  • Burglaries, thefts, and vandalism
  • Cooking fires
  • Natural disasters
  • Foodborne illness outbreaks
  • Identity theft

Liabilities from any of these common risks can open up restaurant owners to legal claims, not to mention excessive workers’ compensation claims. For restaurant operations, Utah restaurant insurance is a critical component of risk management.

Five Essential Utah Restaurant Insurance Coverages

Now that we have a basic understanding of the risks restaurant owners face, what can be done to protect the facility, staff, and assets of the company? The answer lies in Utah restaurant insurance, providing coverages that are tailored to the unique risk exposures of foodservice operations. The five most important coverage areas are:

Commercial Property Insurance – this insurance is designed to provide coverage against fires, water damage, break-ins, and many more risks. If a building were to become damaged or lost, restaurant owners without this crucial insurance may be unable to resume operations. 

Commercial General Liability Insurance (CGLI) – for restaurants, this insurance provides coverage against injury claims of patrons. If a restaurant guest were to slip and fall or were to become ill from eating the restaurant’s food, he or she could have a legal claim. CGLI may also provide coverage for reputational harm, copyright infringement, and other restaurant risks.

Workers’ Compensation Insurance – required by most states, workers’ comp insurance provides financial benefits to employees injured on the job. Injuries are common in the restaurant industry; from cuts and burns to musculoskeletal injuries and illnesses, myriad employee claims are possible. Benefits cover medical expenses and lost wages until the employee is able to return to duty. 

Commercial Auto Insurance – if your restaurant uses delivery vehicles or catering trucks, auto insurance is of the utmost importance. If an employee is involved in a car accident, this insurance protects against injury, property damage, and vehicle repairs. Some commercial auto policies even cover employees’ personal vehicles if they are used for restaurant delivery services.

Commercial Umbrella Insurance – as added protection, umbrella policies are an invaluable “safety net”. Commercial umbrella insurance provides additional liability limits to other insurance coverages, including employers’ liability, general liability, and commercial auto policies. 

Specialty coverages are often available to restaurant owners, particularly if their operations include certain features like the sale of alcoholic beverages. Others, like business interruption insurance, can help provide coverage if an incident forces the closure of an establishment. Speak to an experienced restaurant insurance provider for details on the exact needs and risk exposures of your operation. 

With over one million restaurants in the United States and more than 14 million people employed by restaurants, managing risks is a fundamental part of restaurant operations. Thousands of restaurants in Utah serve as an important economic driver for the state. These primary Utah restaurant insurance coverages are part of a more comprehensive risk management solution, helping to protect business assets from liability losses. 

About BTC Insurance Services

Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.

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