Every business that serves food or drinks should look into restaurant insurance in Seattle, WA. With the high risks of kitchen accidents, injuries, and foodborne illnesses, getting adequate coverage to protect your hard-earned assets from expensive lawsuits and liability claims is advisable. Here’s what you should know about restaurant insurance in Seattle, WA.
#1. What types of establishments need restaurant insurance?
Any kind of hospitality business such as bars, nightclubs, and entertainment venues should pursue restaurant insurance in Seattle. Even food truck and catering services should buy this coverage.
#2. What are some basic insurance coverages that restaurant owners should have?
- Property – Owners, and renters of commercial property need this coverage for the building and restaurant equipment.
- Liability – This portion covers lawsuits a restaurant owner might face, such as claims of food poisoning or unfair employment practices. Some liability plans cover cyber breaches, but cyber protection is a separate add-on in many cases.
- Workers’ Comp – This state-mandated policy for employers protects workers who become ill or injured in the workplace. It pays for their medical bills and income lost while they are away from work.
- Commercial Auto – States also require businesses with vehicles to purchase commercial auto insurance, which is separate from personal auto insurance.
#3. Whatfactors affect the cost of restaurant insurance?
- Location–Businesses located in high-crime areas pay more for insurance.
- Volume – The amount of sales, payroll and square feet of commercial property affect insurance rates, as higher volume often equates with higher coverage costs.
- Property type – Restaurants that serve liquor such as sports bars must take on more liability, leading to higher insurance costs.
- Activities – Restaurants engaging in stage talent or delivery must pay more for insurance.
- Business hours – The longer you’re open, the more coverage you need.
- Alcohol percentage of sales – If your restaurant serves alcohol, what percentage of total sales does alcohol represent? The higher the percentage, the more you will pay for insurance.
- Claims history – You can get deals on restaurant insurance rates if you have no claims history. Conversely, restaurants with a long history of multiple claims will likely pay higher insurance costs.
- Age of business – The longer your restaurant has been in business, the more your credibility, and hence you will be charged lower rates of premium. New restaurants have risks such as unproven track records for food safety and pay relatively more for insurance.
- Coverage levels – Business owners can set their own insurance coverage levels according to risks. More extensive coverage will come at higher costs.
- Lease requirements – Many property management firms that lease office space require tenants to carry a certain amount of commercial property insurance coverage.
#4. How can you get customized coverage for your restaurant business?
- Most companies focus on niches in the restaurant industry – It’s common for restaurants to buy a standard business insurance policy or a Business Owners Policy (BOP) and then add extensions based on their restaurant’s niche.
- Get multiple policies to protect your restaurant – Many restaurants need a wide range of different types of insurance. You can get a discount by bundling these various types of insurance together.
- Captive or independent agent – A captive agent represents one insurance company, whereas an independent agent represents multiple insurance companies.
Getting the right restaurant insurance in Seattle, WA, is essential for protecting your financial assets. Be aware of the different coverage extensions available for various restaurant niches. To learn more aboutrestaurant insurance, contact us at Humble & Davenport Insurance Brokers, Inc.,and we’ll be happy to answer your questions.