As a restaurant owner, there are many critical parts to running your business but none as important as buying general liability insurance for restaurants regardless if your restaurant is located in Los Angeles CA, or Orange County California.
Many different types of restaurant insurance program that exist within the market, but comparing insurance for your specific industry is crucial.
Restaurant coverage unlike other business insurance, is uniquely tailored to cover all the losses and claims that could occur as a result of doing business as a “restaurant owner”.
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This type of policy will protect your business in the event a covered loss should occur, but more importantly, it provides peace of mind so you can focus on your true passion, making delicious food for the world to taste!
As a restaurant owner, you understand the importance of maintaining a liability insurance policy on your restaurant as top priority.
You understand that trips, falls, customer allergic reactions to your food, or other mishaps could occur during the course of your operation, which is why you understand that without liability insurance protection.
If left unattended, your restaurant’s future is uncertain and at risk to the elements associated with insurance exposure.
With certain segments of the population inclined to injuring themselves inside a business, you are leaving yourself open to potential lawsuits.
This can mean the difference of you maintaining your current operation or being forced to shut your doors permanently to the public.
Business Owners Liability Coverage Form
The business owners liability coverage form will provide you with two major coverage descriptions, business liability and medical payments.
This portion of coverage found on your restaurant policy, covers your legal liability for any damages that occurred as a result of bodily injury or property damage.
This coverage will also cover personal injury and advertising injury. This broad definition of business liability is very similar to the combination of both insurance coverage in a commercial general liability form.
However, business owners coverage for a restaurant insurance policy will be always written on an occurrence basis for the coverage of bodily injury and property damage.
The coverage includes fire legal liability which is a separate limit of insurance for any one fire or explosion that is labeled in the declarations page of your insurance policy.
In addition, your insurance company will provide defense costs and the standard set of supplementary payments found on liability policies.
These cost include, bail bonds, settlement expenses, loss of earnings, prejudgment and post judgment interest on amounts awarded and so forth.
The medical expense insurance covers medical expenses for bodily injury caused by an accident on the premises the insured owns or rents, including the ways next to such premises, or an accident because of the insured’s operations.
Medical expenses incurred within one year of the accident date are covered, and payments are made without regard to fault or negligence.
Another area to examine on your business insurance policy for your restaurant is Liability Endorsements which, serve to alter the insurance coverage or provide additional coverage to your policy.
As an example, a hired auto and non owned auto liability endorsement may be used to add coverage for either or both of these automobile exposures, if the insured does not have a commercial auto policy.
Add On Policy Coverage
If the insured has a commercial auto insurance policy, than the endorsement is not available as an add-on to your Business Owners Policy.
A comprehensive business liability exclusion endorsement may be used to exclude specific operations or locations from coverage.
A limitation of coverage to designated premises or project endorsement may be used to exclude coverage except for the premises or projects specifically designated in the declarations page of your business insurance policy.
A variety of different endorsements exist and can be used to add additional insured parties to the policy.
Special endorsement for manager or lessors, state or political subdivision, townhouse associations, co-owners of premises, engineers, architects and surveyors, and others.
After exploring the liability portion of your business owners insurance policy or restaurant insurance policy, the next area to explore is the property insurance portion.
Restaurant property insurance in California covers your actual property and assets as described on your declarations page.
Restaurant property insurance coverage can include exterior fixtures as well as equipment inside the restaurant, such as tables, chairs, counters and other fixtures that are all part of the restaurant property.
All these items will be categorized and listed under this section so, make sure to ask for this type of coverage when comparing online insurance quotes.
The largest investment you have next to the actual building itself which is part of the property insurance portion is the equipment you own so, make sure you are fully protected.
A vital section in the restaurant insurance policy is labeled in the insurance world as worker’s compensation.
Employees work hard for you and if they should get injured while on the job, the state would compensate them for the time they may need to take off from work in order to recover.
Having worker’s compensation on your business insurance policy protects you, the business owner, against any action by an employee that could otherwise cripple you financially.
The cost of being sued by employees can be detrimental to the restaurant owner who may not have worker’s compensation as a part of their restaurant insurance policy.
Make sure that cheap business insurance policy is not costing you down the road.
Restaurant owners are business owners who need specialized insurance coverage to suit their specific needs. Many insurance layers exist under a Restaurant Insurance Policy.
This is why it is important to do your homework regardless if you are shopping for cheaper insurance rates or just researching ways to lower your current Restaurant Insurance.
Duties in the Event of Loss
The condition you should look at is your duties in the event of loss. These include giving prompt notice of loss, providing a description how and when the loss occurred, protecting property from further damage.
In addition, you must permit your insurance company to inspect property and submit a signed proof of loss within 60 days after a request.
Components of a Business-owners Policy
Each BOP is a complete contract and must include the following parts in order to be complete:
- the business-owners policy declarations,
- the business-owners policy coverage form
- endorsements as required
The policy declarations will show your policy number, name of the carrier , the name of your agent, and the name, and address of the insured, in addition to the policy period.
This declaration page like your automobile policy, outlines your coverages and limits of coverage.
Spaces are provided for a description of the business. The form of business locations of described premises, and name and address of any mortgage holder would be needed.
Limits of Coverage
Limits of insurance will be shown for buildings and for business personal property. Limits of coverage for optional coverage’s will be shown, and optional coverage will apply, only if the appropriate boxes are checked indicating that optional coverages apply.
Standard versus Special
Property coverage must be written on either the standard or the special property coverage form. These two forms however, may not be combined.
Most coverages provided by the two forms are identical, thus reason for not having both at the same time.
The major differences are in the covered causes of loss. The standard coverage is similar to basic coverage provided by other commercial forms, while special coverage means the same open perils type coverage provided by the special causes of loss form.
Difference in Coverage
There are minor differences in the optional coverages available with each form.
However, keep in mind the major property coverages are the same and business-owners property coverage can be discussed as a single topic Both business-owners forms provide the following two major coverages:
- Coverage A – Buildings and the second is
- Coverage B – Business Personal Property
Limit of Coverage
A limit of coverage must be shown in the declarations page fore each type of covered property. As an example, an insured businesses that is a tenant would not required the building coverage.
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