Running a restaurant is more than just serving great food and providing excellent service – it’s about creating an experience for your customers while managing the risks that come with the business. Whether you own a small cafe, a family-style diner, or a fine dining establishment, having the right insurance coverage is essential to protect your investment, your employees, and your customers.
At Davis Insurance Associates, we specialize in helping restaurants across South Carolina and North Carolina find the best insurance coverage at competitive rates. Our independent agency works with multiple top-rated carriers to bring you policies tailored to your specific needs.
What Types of Insurance Should a Restaurant Have?
A well-structured restaurant insurance policy should include (but not limited to) the following types of coverage:
1.      General Liability Insurance
This is a must-have for any restaurant. General liability insurance helps protect your business from claims related to third-party injuries, property damage, and advertising injuries. For example, if a customer slips and falls inside your restaurant, this coverage can help pay for medical expenses and legal fees.
2.      Property Insurance
Your restaurant’s building, equipment, and furniture are valuable assets. Property insurance can cover damage caused by fire, theft, vandalism, and certain weather-related incidents. If you own the building, this coverage is essential. If you lease, your landlord may require you to carry it.
3.      Liquor Liability Insurance
If your restaurant serves alcohol, liquor liability insurance is crucial. It helps protect you from claims related to alcohol-related incidents, such as a customer causing harm to others after consuming alcohol at your establishment.
4.      Workers’ Compensation Insurance
Most states, including South Carolina and North Carolina, require businesses with employees to carry workers’ compensation insurance. This coverage helps pay for medical expenses and lost wages if an employee is injured on the job.
5.      Business Interruption Insurance
If an unexpected event, like a fire or hurricane, forces you to temporarily close your restaurant, business interruption insurance can help cover lost income and ongoing expenses while repairs are made.
6.      Commercial Auto Insurance
If your restaurant offers delivery services or uses company-owned vehicles for catering, you’ll need commercial auto insurance to cover accidents involving your business vehicles.
7.      Food Contamination & Spoilage Coverage
Power outages, refrigeration failures, and other issues can lead to spoiled food, which can be a significant financial loss. This coverage helps reimburse you for lost inventory due to covered events.
8.      Employment Practices Liability Insurance (EPLI)
EPLI protects your business against claims of wrongful termination, harassment, discrimination, and other employment-related issues filed by employees.
How Much Does Restaurant Insurance Cost?
The cost of restaurant insurance varies based on several factors, including:
·         The size and type of your restaurant
·         Location (coastal areas like Myrtle Beach may have different risk factors)
·         Whether you serve alcohol
·         Number of employees
·         Past insurance claims
·         Coverage limits and deductibles
On average, a small to mid-sized restaurant can expect to pay anywhere from $2,000 to $10,000 per year for a comprehensive insurance package. The best way to determine your specific cost is to get a personalized quote.
START A QUOTE FOR YOUR RESTAURANT INSURANCE.
