What Coverage Do You Need for Restaurants and Food Service Business? August 2019

If you own a restaurant or have thought about opening a restaurant, as with any business it takes allot of time and energy, not to mention blood, sweat, and tears, and allot of perseverance in getting it up and running. There are some unique risks involved when it comes to insuring a restaurant. Workers can or will get injured, patrons could get sick, cooling systems may break down, and the list goes on. It’s important to make sure you are adequately protected with business insurance in the event something major happens.  Setbacks due to fire, theft or other unexpected life events may be hard to recover from, especially before you’re turning a profit.

The greatest chance of success in the food-service business is to make sure your restaurant can handle a financial loss due to things beyond your control.  Here are some tips.

Basic Coverage’s

Business Owner’s Policy provides insurance for your property, liability and loss of income due to a loss on your business.

  1. Property: Provides coverage for your building (owned or rented, additions or additions in progress and outdoor fixtures). Covers your business personal property for damage or loss, kitchen equipment and inventory, including perishable foods. Commercial property insurance provides reimbursement if a fire damages your kitchen, even if a fire started in another building.  It provides coverage for vandalism, theft, and certain types of weather-related damage, such as burst pipes and hail damage.   
  1. Liability:Protects against lawsuits related to a customer’s injury or damage to a customer’s property that happened at your place of business. General liability insurance can help pay for medical expenses, pay for repair or replacement of customer’s property if damaged and help pay for court costs, attorney’s fees, and other legal expense if a customer holds you liable.  General liability provides coverage against advertising injuries, including defamation (libel and slander) and accusations of copyright infringement.  
  1. Business interruption: In the event of a loss this coverage will help make up for lost income and pay other related expenses to help you reopen. It covers loss of income due to a fire or other catastrophe that disrupts the operation of your business. It can also include extra expense of operating out of a temporary location.

Other Coverage’s

  1. Liquor liability:If your bar or restaurant serves alcohol you may be required to purchased liquor liability insurance, it can be added to a business owners’ policy.  This coverage protects your business in the event an intoxicated customer injures another customer’s property or causing injury to someone due to consuming too much alcohol at your business.  
  1. Commercial auto insurance:Can cover expenses related to accidents involving a business-owned vehicle. It provides coverage for vehicle theft and vandalism.  If your restaurant provides delivery service on a regular basis, make sure you have a commercial auto policy in place.
  1. Worker’s Compensation:This policy is required in most states for business with one or more employees.  It provides coverage for medical expense and partial lost wages if an employee is injured on the job.
  1. Food spoilage and contamination: Whether it’s due to a malfunctioning refrigerator or a power outage, damage to your stored food can be a big financial loss to your business.  This type of coverage will help you recover from the damage.  It provides coverage to help reimburse the cost of replacing spoiled frozen or refrigerated food, or shelved perishables.  Food contaminated by a supplier or improper handling may also need to be thrown away.  Food contamination coverage helps with replacement costs, along with associated cost such as cleaning or advertising to restore your reputation.  Food spoilage and contamination coverage can both be added to commercial property insurance on your BOP.

Homeowner’s Insurance – July 2019

There is nothing like your home

Home, it’s your favorite place to relax after a long day; it’s your sanctuary.  It’s where your kids run to after they step off the school bus.  It’s a place where you build long lasting memories that have taken place.  Your home is where you play, plan and dream with those you love.  Therefore, it’s essential you ensure it properly – both inside and out.

Home insurance covers more than disasters

Home insurance isn’t reserved for times of catastrophes such as – fire, tornadoes, and other natural disasters.  It can be a welcome sight when your home has been subjected to complete ruin.  The hail damage you received to your roof, the broken water heater that flooded your newly finished basement, theft, vandalism, identity theft and more are all items that can be covered under your homeowner’s insurance.

Damage caused by most disaster is covered but there are exceptions. A standard homeowner’s policy does not cover flooding, earthquakes or poor maintenance.  Flood Insurance is provided by the federal government’s National Flood Insurance Program, you may purchase this from an insurance agent.  Earthquake Insurance is available either in the form of an endorsement or as a separate policy.  Most maintenance related problems are the homeowner’s responsibility.

Homeowners insurance policy includes four essential types of coverage
  1. Coverage for the structure of your home. This part of a policy pays to repair or rebuild your home if damaged or destroyed by fire, hail, lightning or other disaster listed in the policy. It does not cover flood, earthquake or routine wear and tear. Most standard policies also cover structures that are not attached to a house such as a garage, tool shed or gazebo.
  2. Coverage for personal belongings. Furniture, clothes, and other personal items are covered if stolen or destroyed by fire or other disaster. Most companies provide coverage for 50 to 70 percent of the amount of insurance on the structure of a home. Expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. To insure these items to their full value, individuals can purchase a special personal property endorsement or floater and insure the item for its appraised value.
  3. Liability Protection. Covers against lawsuits due to bodily injury or property damage that policyholders or family members cause to other people. It also pays for damage caused by pets. The liability portion of the policy pays for both the cost of defending the policyholder in court and any court awards—up to the limit of the policy. Coverage is not just in the home but extends to anywhere in the world. Liability limits generally start at $100,000. An umbrella or excess liability policy, which provides broader coverage, including claims for libel and slander, as well as higher liability limits, can be added to the policy.
  4. Additional Living Expense. Pays the additional costs of living away from home if a house is inhabitable due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while the home is being rebuilt. Coverage for additional living expenses differs from company to company.
What Home insurance options are available

Lancaster Insurance Center provides the following types of home insurance to meet your specific needs..

  • Home Insurance
  • Condo / Townhouse Insurance
  • Renters Insurance
  • Mobile-Home Insurance
  • Dwelling Fire / Landlord Insurance

We offer coverage enhancements like replacement cost coverage for your dwelling and contents, guarantee replacement cost, water back up of sewers and drains, ordinance or law, and equipment breakdown.

When it comes to your home, Lancaster Insurance Center is here to help you protect what matters the most.  Lancaster Insurance Center will be there for you every step of the way, especially in the event of a claim.  We are about helping you protect what matters the most, your family and your home.