Restaurant Insurance In Massachusetts
Owning a business in the food service industry requires a considerable amount of backbreaking work. Starting such a business requires a major investment and it must be supervised constantly. Restaurant owners devote most of their time and money running their business. However, in such a busy industry there are several risks that could close the doors without proper Restaurant Insurance.
In mid-January 2015, firefighters responded to a restaurant engulfed in flames in downtown Lawrence, MA. Apparently, a transformer behind the building blew causing a major power outage. Within half an hour, the restaurant was ablaze.
In September 2014, an Agawam, Massachusetts restaurant suffered a three-alarm fire. By the time firefighters arrived on the scene, heavy, thick smoke was barreling out of the building and flames were coming from the basement. A neighboring bar was also evacuated due to the flames and smoke coming from the original disaster.
An electrical pole near the front of the restaurant caught fire, which led to power being disconnected for some time in the area. A considerable amount of damage was caused to the outside of the building. The broken windows had to be covered with boards and glass was scattered all over the floor. The inside of the restaurant was also damaged and the smell of smoke spread throughout the surrounding area. Such significant damage led to the closing of the restaurant for some time while it was undergoing repairs. The cause of the fire was not determined.
These businesses had the foresight to make certain that their restaurants would be able to remain profitable by protecting their business with adequate Food Service Insurance. Therefore, after being struck by disaster, they were able to continue to thrive.
On average, the damage from a structure fire at a restaurant is far more expensive than a residential structure fire. While fire is one of the most common risks that restaurant owners must face, it is definitely not the only hazard of the job. Therefore, a comprehensive Restaurant or Bar Insurance policy is important to make certain that your business will be protected against any unforeseen catastrophes and be able to remain profitable.
The Type Of Restaurant Insurance You Need
As a business owner in the food service industry, you will need to invest in a number of different coverage types. Some types of insurance are required by law and others are a requirement of the financial institution that holds the mortgage or provides a large business loan. In some cases, business insurance is a condition of the lease when the building that houses the restaurant is rented.
Some of the most important types of Food Service Insurance include:
- Commercial Auto Insurance - If your restaurant provides catering or delivery service, this type of insurance is necessary. It will offer coverage for the company-owned automobiles and employee-owned vehicles that are used during the course of work for your restaurant.
- Life insurance - Lenders will sometimes require you to carry life insurance if you take out a sizable business loan in order to finance your food service enterprise. This is their way of making certain that your estate will be settled properly and your business loan will be paid in full in the event of your death. Even if you are not required to carry life insurance, it is still the best way to make sure your loved ones will be promised a financially secure future if you pass away unexpectedly.
- Unemployment insurance - This will protect employees who lose their job through no fault of their own. Speak with your insurance agent to determine the coverage that you need in order to comply with state laws regarding unemployment insurance.
- Workers Compensation - In the state of Massachusetts, you are required to carry workers compensation insurance. This will provide coverage for employees who are injured, killed or become ill on the job, including medical and recovery expenses, loss of income and death benefits.
Restaurant and Bar Insurance are Business Insurance policies that are designed especially for restaurant owners. It will provide you with property damage insurance and general liability insurance. In addition, it will also provide coverage for the hazards that are unique to the food service industry.
As a food service business owner, you must protect yourself against a wide range of liability risks. The cost of proper Food Service Insurance is much less than the cost you stand to pay in the event of a serious lawsuit. In addition to general liability coverage and product liability coverage, you will also need liquor liability coverage if you serve alcohol at your restaurant.
Property damage is also a necessity for restaurant owners. If your property is damaged due to fire, weather or electrical issues, you will be able to rely on your property insurance, which should include coverage against building and content damage, equipment breakdown and food contamination.
These are only a few of the most important types of Restaurant or Bar Insurance coverage you need to consider. Click on the quote request button now for a risk free quote to determine the coverage you need to set you mind at ease and protect your business.