Types of Insurance Your Restaurant Needs

May 1, 2019

No one gets into the restaurant business thinking about insurance and paperwork, but it’s still an important part of doing business. Insurance helps protect you from natural disaster, theft, employee injuries, and liability.

Many times you can get insurance discounts when you take steps to keep your employees and kitchen equipment safe, reducing your risk. Here are the primary types of insurance to focus on!


Worker’s Compensation

This one is simple – it’s required by law and you can get in a lot of trouble if you don’t carry it. Worker’s compensation insurance helps pay for employee’s injuries and lost wages if they get hurt on the job.

Unfortunately, using the equipment and supplies in a restaurant can be pretty dangerous. This is especially true if you have younger workers who have less experience around sharp knives, hot stoves, and fryers full of hot oil.

To lower your risk, have specific processes for your kitchen and front of the house. Your senior staff and managers should help ensure they are followed precisely every time.


Property Insurance

Whether your property is stolen or damaged by bad weather, you want to have help putting the pieces back together if something goes wrong. Property insurance can help.

Keep in mind that most property, including expensive kitchen equipment, will only be replaced at the actual cash value. You may be able to purchase additional coverage to get replacement value, at least on your most important items.

Be sure to add coverage for sewage backup, which is not covered by normal commercial insurance. Unfortunately you can’t control what your patrons do in the restroom, and it pays to be covered!


Liability Coverage

Unfortunately, businesses are seen as prime pickings for those who want to make a buck through a lawsuit. There are also legitimate accidents that can happen where you might be liable for injuries or damage.

Either way, having a strong liability policy is vital. Whether a diner is injured by your equipment or supplies, or scalded with coffee, or trips over a chair, you could be liable. Protecting yourself during a lawsuit is just as important as having coverage if you’re found responsible.

You may also need specific coverage for liquor liability if you serve alcoholic beverages.

Liability coverage covers both legal defense and damages, so it’s important to choose excellent coverage!


Commercial Auto Insurance

If your restaurant has delivery or catering, you’ll need to make sure you have appropriate insurance. Be sure you have liability coverage, property damage, and additional coverage for any kitchen equipment or materials that are stored in the vehicle.

Many insurers will offer all of the insurance you need in a single package. That can make it much easier to manage, but you may be able to get a better premium if you shop around for each type of coverage.


Get the Kitchen Equipment You Need

Whether it’s time to upgrade your kitchen equipment or you’re considering expanding, it pays to have a supplier you know and trust. Tipton Equipment has been serving Little Rock restaurants for many years, and we’d love to help you find the supplies you need.

We have a variety of items available for your commercial kitchen and the front of the house. Contact us today to see what we can do for you!

Three Benefits of Using Used Kitchen Equipment

Three benefits of using used kitchen equipment are more straightforward than you would think. SavingsUsed kitchen equipment will save you thousands in, starting a restaurant. High restaurant failure rate leads to restaurant kitchen equipment only being in service for...

read more

How to Run a Successful Event & Party Room

Do you have a large space in your restaurant set aside for special events and parties? Does it get reserved as often as you wished?If you’re like most restaurant owners or managers, the answers are yes and no. You probably have a space – almost everyone is expected to...

read more

Philadelphia Outlaws Cashless: What it Means to You

In early March, Philadelphia became the first city in the U.S. to forbid restaurants from refusing cash payments. As of July 1, all Philadelphia restaurants will have to accept cash payments and cannot charge cash-paying customers more than non-cash ones. Several...

read more

Control COGS in Your Restaurant

Restaurants are known for having razor-thin margins, but you can improve your profits if you have a good handle on your costs. That doesn’t mean you have to skimp on restaurant supplies, but it does mean you can be strategic about what you spend. Do you know your cost...

read more

It’s a Toast: Why We Love the “Friends” Kitchen

Welcome to our new series, “Roast and Toast!” Each month we’re going to feature one kitchen we love and one kitchen we hate. It can be from anywhere – a sitcom, a cooking show, a cartoon, a movie, or any other screen you’d see one on! We’re starting off with a toast...

read more

Ready to Open a Second Restaurant Location?

If your current restaurant is booming, it might be time to consider a second location. Congratulations on your current success – you’ve already beaten the odds! Opening a second location can be easier than your first one – you’ve already worked out a lot of the kinks....

read more

The One Product to Boost Convenience Store Sales

Is there one product that can single-handedly make or break the success of your convenience store? A lot of store owners would say no. When they look at their store, they see products coming from hot dish foodservice equipment, shelves, and a variety of categories...

read more

Restaurant Equipment Spotlight: Gas vs. Electric

Does your Little Rock restaurant use gas or electric restaurant equipment? In all likelihood you made this decision a long time ago, but it’s one that can always be reconsidered. There are benefits to both. If you’re opening a new restaurant location, it’s vital to...

read more

Restaurant Equipment: Self-Ordering Technology

One of the biggest challenges of running a restaurant is keeping up with all the technology and restaurant equipment that is available. You might have thought when you opened your location that you could run things basically the same way for decades.  While they may...

read more

Four Tips to Opening a Successful Restaurant

Have you been dreaming about bringing your food expertise to the forefront of you life? Many people have thought about opening their own restaurant. Folks don’t follow through for a variety of reasons – money, fear, or simple inertia. You can be different, though. You...

read more

The Case for Timeless Restaurant Décor

What’s the newest trend in restaurant décor? Evidently, people are loving “Millennial pink,” and they’re using it for everything. If you’re trying to keep up with what’s hot, you better get some new restaurant supplies right away! And remember, this isn’t just any...

read more

Deep Fry Safely & Efficiently

When it comes to kitchen equipment, knowing how to use it correctly is vital. Not only does it keep your employees safe, it ensures that the food comes out well and that your equipment last a long time in good condition. Using a deep fryer may seem pretty simple, and...

read more