For restaurant owners, a number of factors play a role in attracting customers—the food quality, ambiance, hygiene. However, in order to run a competitive business, there is a lot more that the business owner needs to keep in check.
Many people ignore the importance of record keeping and choosing an appropriate insurance policy. But this plays a significant role in the restaurant industry.
Maintain Organized Records For Insurance Claims
The first step in calculating the costs of the business and determining performance is to keep records. These records should include all the income and expenses of the business. The sales and purchases receipts should also be recorded as proof of transaction.
As the business owner, you need to make a list of the assets within the business. Depreciation needs to be calculated on items. In case it is lost in an accident or burglary, you should be aware of its value. Knowing the amount of loss incurred by the business will help when making the insurance claim.
The kind of coverage discussed can also apply to other similar businesses such as:
- Mobile food businesses
In a situation where a burglar breaks into the premises—and equipment, stock and cash are stolen—this kind of insurance that will help cover for those losses.
In a restaurant business, the kind of items that could be stolen can include expensive machinery and also computers that are used to record data and take orders for delivery.
Fires & Accidents
The insurance policy you choose should cover losses caused as a result of fire, explosion or storm that resulted in loss of equipment or damage to the business property. There will be high costs associated with such an incident and in the case of restaurants, the likelihood of fire accidents is very high so your insurance should be able to cover for this kind of loss.
Product Liability Insurance Should Cover Food Contamination
For restaurants, one problem that might arise is food contamination.
There can be numerous causes for this, but if the customer gets sick as a result of this negligence, it is the business that will be affected—both in terms of reputation and finances, if clients file for a lawsuit.
In such situations, product liability insurance will cover for the loss incurred on the business. If your restaurant serves alcohol then make sure the policy includes liquor liability insurance as well.
Equipment Breakdown Insurance
The major loss incurred on the business arises when any equipment breaks down during the operations of the business.
For example, if the freezer stops working, food will go bad. Or if there is a problem with the electricity supply, the operations of the business will be put on a hold. This will result in a great loss.
An insurance policy is chosen depending on the kind of services your food business offers—such as delivery, takeaway, size of the restaurant, and the number of employees hired.
365insurance is the place to go, to find all the different options in policies. We can provide you with the insurance quotes to help you make your decision so you don’t have to settle for a policy that does not do justice to your restaurant.