Getting an Insurance for your Café or Restaurant

Saturday, September 26, 2020, 6:00 AM | Leave Comment

If you own a café or a restaurant, we understand that there are so many concerns to think of. It can be your sales, customers, staff, stocks, and profit!

You may not have a chance to think of anything untowardly that can happen.

Hence, for better peace of mind, we suggest you get business insurance. This is a very important part of a business that is sometimes overlooked at.

Never take chances. Anything can happen. So you ask what type of insurance you should get.

You probably heard of small business insurance or hospitality insurance. Which of these should you choose?

Let us help you decide. We will take you through information about insurance options.

What are the different business insurance options?

Many items are covered in business insurance. This is because a business has so many facets. This is especially on the operations side and in dealing with customers. Any unfortunate event can happen in the day to day operations. That is why it is important to have business insurance. It is of best interest for you to find a good insurance broker. Check out different insurance brokers Perth to know more.

What does business insurance cover? Read some examples below.

  • Public Liability

    Public liability means a liability to a third party person outside of your business. It is a legal liability for cases like personal injuries or property damages.

    An example of this is if a customer slips within the premises of your restaurant because of a wet floor. It results in an injury to the person, such as broken bones. The person needs to be hospitalized and expenses soar up. Insurance with public liability can cover for such expenses.

  • Product Liability

    Product liability is similar to public liability. Except that it is relating the product itself. For example, a customer complains of food poisoning from your product served. Product liability insurance can cover this.

  • Property damage

    Property damage is damage to business property. This includes the premises and the contents. It is physical damage to tangible property, like a building or your equipment.

    An example of this is when a fire breaks out due to an accident. This can be covered by the property damage insurance.

  • Theft

    This includes theft from outsiders. For businesses, this is important. Anybody can break-in at night. Or even during operations time, somebody can steal from your business. Even employees who steal can be covered. An example can be your cashier who may be tempted to get money from the cash register or POS.

  • Personal accident and illness

    This item covers any unfortunate accidents of employees. Injuries can happen inside your premises. For example, the cook gets burnt in a kitchen accident. Or somebody gets ill brought about by something related to his or her line of work. A personal accident and insurance covers such cases.

    The other items that can be covered by insurance are portable and valuable items, motor vehicles, and tax probes.

    Aside from these are business interruptions and equipment breakdown. We will cover more of these in the latter section.

  • Hospitality insurance

    This is business insurance that is designed for the foodservice industry. It is for restaurants, cafes, and food vans or trucks. It is also for caterers and food retailers.

    Hospitality insurance covers theft. This can be theft from outside intruders. Sometimes even some employees cannot be trusted. Inside theft can be disheartening since you know the person involved. Rest assured, losses from theft can be covered by hospitality insurance.

    Damage to property can also be covered by hospitality insurance. It can be due to unforeseen cases due to calamities. It can also be due to intentional damages.

    Hospitality insurance can also cover business interruptions and food spoilage.

Customizing Policies

You can customize your insurance to meet your business requirements.

Sample inclusions can be:

  • Wastage, Food Spoilage, and Food Contamination

    This can be the excess food inventory for the day that can no longer be used. These also include expired food and stocks.

    Food contamination can also cover an employee’s faults. For example, it can be such a mishandling of food.

  • Power outage

    Sometimes, unexpected things happen like power outages. This is beyond your control. It can be a day or it can be longer. That depends on your electricity provider. With power outages, you lose sales. For such cases, you can have insurance pay for the losses due to power outages.

  • Equipment breakdown

    A café or restaurant has types of equipment. It can be cookware, commercial dishwashers, or sealers. For example, if you have a cafe and your coffee machine breaks down, insurance can cover this.

Choosing your Insurance

An insurance company can offer a policy to cover small businesses. It can be packaged as a small business or hospitality insurance. The difference between the two depends on the policies relating to the operations. Base your insurance policy by the size of your business, trade, location, and industry.

In choosing your insurance policy, make sure you choose the best insurance brokers Perth. It is important to get a reputable and trustworthy insurance company.

Experience and years in business matters. Choose a very stable insurance broker. Compare what each company offers. You can customize the policy. The insurance premium also depends on what the insurance covers. Make sure you get a company and a premium that works best for you and your business.

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