5 Things Pennsylvania Restaurant Owners Need to Know About Insurance

Searching for business insurance in the Hanover, PA and surrounding areas is a difficult task. But, if you are a restaurant owner or manager, your plate is pretty full. Managing staff, purchasing inventory, and making sure customers are happy are all at the top of your list. The last thing you want to think about is insurance. Shopping for restaurant insurance may seem overwhelming at first, but avoiding it at all costs leaves you wide open to lawsuits.

The team at Rumbaugh Insurance put together a list of the top things you need to know about business insurance for your restaurant. Use this list to simplify the insurance process and make the right choice.

Write an overview of your services.

Finding an insurance agent that offers the insurance you need is easier if you can show what you offer. Since not every restaurant is the same, it is best to start by making a list of your services. Things to consider include serving food, alcohol, off-site catering, room rentals, and restaurant-sponsored events.

Understand the risks.

There are several common risks associated with running a restaurant. Trip and fall, food poisoning, alcohol-related driving accidents, and employee injuries are just a few incidents that restaurants are faulted for.

Pick an independent insurance agent that has experience.

Independent insurance agents represent a group of insurance companies. By having access to multiple providers, they can shop for the best coverage you need at the best price. Buying insurance online or from an agent only representing one company doesn’t give you that advantage.

Know what options are available.

Here are the top insurance policies you need to understand and consider as a Pennsylvania restaurant owner.

General Liability

General liability insurance protects your restaurant against claims from customers. If a customer injures themselves or their property is damaged because of your oversight, they can sue for damages. Common claims include slip and fall and food poisoning.

Commercial Property

Commercial property protects the things you own like your building and everything inside in the event of fire, theft, or vandalism. The best commercial property policies include loss of income coverage. It pays you for lost profits if you have to shut down to repair the building as a result of a covered claim like fire.

Liquor Liability

If you serve alcohol, this is a coverage you can’t afford to ignore. Liquor liability insurance protects you if a patron leaves intoxicated and causes damage to someone else. An example is driving drunk and crashing into another vehicle or property. You can be held liable for their actions.

Business Auto Insurance

This is common for businesses that offer off-site catering services and use a company vehicle. Business auto insurance protects you in the event someone driving the business vehicle causes an accident, injury or damage to another person’s property.

Non-Owned & Hired Auto Insurance

Non-owned & Hired Auto insurance covers your restaurant in the event an employee uses their personal vehicle to run errands for you and causes an accident. The restaurant can still be found liable for their actions.            

Worker’s Compensation

In most states, worker’s compensation is mandated. It pays for expenses related to employee injuries on the job. In addition, it pays the employees lost wages and defense expenses if you are sued by the employee as a result.

Don’t focus on cost.

The last thing you want to skimp on is insurance. It is better to make sure you purchase the right insurance based on coverage over just looking at the price tag. In most cases, restaurants that pick the cheapest option end up paying more when a claim does arise.

Don’t get lost in the insurance maze. Use these tips as a guide to find the best insurance for your Pennsylvania restaurant. If you have any additional questions, call Rumbaugh Insurance at (717)632-6001. Our insurance agency is located in Hanover, PA, but we have been serving the surrounding communities including New Oxford, Littlestown, Spring Grove, and Gettysburg since 1972. Let us help you find the right insurance today.

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