What is restaurant insurance?

Restaurants are busy businesses exposed to multiple risks. From parking lot slip and fall accidents to kitchen fires, there are numerous potential scenarios where a restaurant could need financial protection. Restaurant insurance can provide Texas eateries with protection against a host of losses and lawsuits.

Restaurant insurance is tailored for dine-in establishments, although policies certainly can cover take-out and delivery too. Policies usually come with many coverages that are useful to eateries.

What food service businesses in Texas is a restaurant policy right for?

Restaurant policies are generally the best insurance option for dine-in establishments. Most dine-in places in Texas will likely find that this type of policy meets their insurance needs well.

Other types of food service businesses can have similar, but not identical, insurance needs. Food trucks, caterers, bars, and others usually find that a policy tailored for their specific operations better suits their situation.

What types of restaurant liability insurance protections do restaurant policies offer?

Many of the coverages in restaurant policies focus on protecting against liability lawsuits, where an eatery can be held financially responsible for others’ injury, illness or property damage. Restaurant liability insurance coverages can include:

• General Liability Coverage: Might cover basic “slip and fall” accidents occurring at a restaurant.
• Product Liability Coverage: Might cover illnesses caused by improperly handled food and beverages.
• Liquor Liability Coverage: Might cover accidents and certain other incidents involving inebriated customers. 
• Umbrella Liability Coverage: Might offer secondary restaurant liability insurance protection for costly suits.

For covered claims, restaurant liability insurance typically helps pay any attorney fees, court costs, and settlements often starting payment before a case is settled.

What types of restaurant property insurance coverages do restaurant policies provide?

Most policies have property insurance coverages in addition to their restaurant liability insurance ones. Property coverages mainly protect assets owned by an eatery, ranging from significant assets like buildings to smaller ones such as food. Possible restaurant property insurance overages can include:

• Commercial Building Coverage: Might cover buildings and other structures owned by a restaurant.
• Tenants Betterment Coverage: Might cover improvements made to a restaurant’s leased kitchen and dining areas.
• Commercial Contents Coverage: Might cover non-permanent fixtures and equipment, such as POS systems tables, artwork and kitchen shelves.
• Food Contamination Coverage: Might cover ingredients, prepared foods and drinks against contamination or spoilage caused by disasters.

The specific perils covered by restaurant property insurance depend on a policy’s terms, conditions, and exclusions.

Do restaurants require auto insurance?

Restaurants generally need auto insurance coverage if they own a vehicle, and they might need it if they have employees make deliveries with personal vehicles. Here are some situations where auto coverage might be needed, and a corresponding way that coverage might be procured:

• Restaurant owners using personal vehicles for supply pickups or deliveries may require a commercial endorsement on their personal auto policy
• Restaurants with employees making deliveries (e.g., pizzerias) may need hired and non-owned auto coverage, which typically provides liability coverage for vehicles used but not owned by a business
• Restaurants with delivery trucks (e.g., multi-site eateries) may need standard commercial auto insurance
• Restaurants using food trucks for off-site events may need food truck insurance in addition to their restaurant policy
• Restaurants catering off-site events may need catering insurance in addition to their restaurant policy

An insurance agent specializing in restaurant policies can help eateries find the appropriate auto insurance for their needs.

How can Texas dine-in eateries obtain restaurant insurance?

To get insurance for a Texas restaurant, contact the independent insurance agents at A. Floyd Insurance. Our knowledgeable agents will work with you to determine coverage needs, and then help you compare restaurant insurance policies that meet those needs. We’ll make sure your eatery is well protected.