The restaurant business is fraught with risks, with accidents waiting to happen in the high-pressure work environment both in the kitchen as well as the dining space. While having the right restaurant insurance policy ensures that you are covered from damage, loss, injuries to workers and customers, and expensive lawsuits, it is equally important that you regularly review your insurance coverage to stay assured that you are adequately covered, especially if you have introduced a significant change to your restaurant.
In this blog, we will discuss the six most important reasons why you should necessarily review your restaurant insurance coverage.
When your restaurant picks up business, you need to make certain changes to accommodate the ever-growing number of customers. The first change that you need to make is to increase the seating space. However, when you expand the restaurant area, you must make changes in your commercial property insurance coverage, too, to ensure that your business remains sufficiently protected in the event of damage to the property.
If you decide to sell alcohol in your restaurant, you become more vulnerable to liability claims of property damage or injuries caused by a customer to whom you have sold alcohol. It can even lead to financially crippling lawsuits if you don’t have the right insurance coverage. So, it’s important that you review your coverage with your insurer and add liquor liability coverage to your insurance policy to stay protected.
Opening a second restaurant in a new location may be exciting for your business with higher profit potential, but you cannot overlook the fact that it needs separate insurance coverage. However, while discussing your options with your insurance provider, you can ask for a discount for buying multiple restaurant insurance plans from them.
A renovated restaurant usually attracts higher customer interest and leads to better business, but it also has its own risks. With superior infrastructure, equipment, and other additions to the interior, the coverage limits may have to be increased to accommodate the higher repair and replacement costs in case of damage.
If your restaurant has been found to violate safety or health code standards, it may lead to an increase in your insurance costs. However, once you take corrective measures and successfully meet all the required norms, you must contact your insurance provider and review your coverage costs.
Even if you have not incorporated any changes in your restaurant, an annual review of your restaurant insurance policy must be your priority. You may need to increase coverage limits in lieu of the increasing costs in the different aspects of the restaurant business. Doing this offers you the assurance that you are financially secure even in the face of a wide range of potential disasters.
For more information on restaurant insurance, you can contact one of our expert agents. At GrayStone Insurance Group, we help you buy the right coverage and review your existing insurance coverage to ensure that they align with your current needs.
