California Restaurant Insurance

Restaurant Insurance in California can be a bit tricky. California has many laws to protect employees and strict OSHA regulations. In order to reduce your liability and protect yourself, as a restaurant owner, from financial disaster, you must purchase the right insurance for your restaurant.

A common problem in the restaurant industry is that owners use a friend of the family or their personal insurance broker to get them insurance. However, someone who does not specialize in insuring restaurants in California would not know the specific risks that restaurants face.

A few things to know about California Restaurant Insurance:

Employment Liability Practices Insurance
In California, more than half of restaurant owners have faced employee lawsuits. It is difficult to control the hours that wait staff works because of how variable the industry is. If the restaurant is busy, they may not take their meal period on time or work overtime. These are exactly the cause of many lawsuits by employees in the restaurant industry.

Especially because of the new Wage & Hour Laws for 2012 that were passed in California, it is imperative that you get Employment Practices Liability Insurance to protect you financially in the event of a lawsuit.

Food Specific Insurance
In a restaurant, you feed the general public. There have been cases where food is contaminated and causes illness. A restaurant must have insurance that will protect them in the event that the food they serve causes people to become sick.

There are several types of coverages that apply directly to food safety. Depending on the type of business you have, they type of food you serve, and the volume of food you produce, one or more of these coverages can help protect you.

Product (Food) Liability, Food Spoilage Coverage, Food Contamination Coverage, and Food Recall are all coverages to consider for your restaurant business. A qualified agent can help you determine exactly what coverages can help protect your business.
Insurance for the Restaurant Building
Restaurants in California have specific risks that are different from other kinds of businesses. It is possible that there can be a flood inside of the restaurant because of a water main or sewer break.
Leaks in the walls or can damage the business next door. Mold can grow under the tiles, causing a health department violation. Fires are also common in restaurants. If the building burns down and burns the office next door, you face additional liability.

Restaurant Equipment Insurance
Restaurants have specialized and expensive equipment. A loss of power can result in all the food in the cooler or freezer spoiling. If a convection oven breaks down your business may not be able to serve food for several days until the equipment is fixed or replaced. Did you know there is coverage for that? Business interruption coverage and equipment breakdown insurance will back you up in the event of a loss.

Crime Coverage for Customers’ Credit Cards and Personal Property
With the prevalence of customers using credit cards, mobile phones, and other alternative forms of payment, restaurant owners are at risk for one of the staff skimming the credit cards of the customers and selling or abusing that information.

As more restaurants offer online ordering, website security is a concern as well. Cyber Crime Coverage can protect you as a restaurant owner in the event that your website is hacked into and your customers’ data is compromised. In addition, payment by smart phone is becoming popular. It is so new many do not even consider the risk associated with that.

Liquor Liability and Event Host Liability
If you sell beer, wine, or other types of alcohol, you will need liquor liability insurance and a specially trained staff who knows when to cut off someone who has drank too much. But what if you don’t serve alcohol in your restaurant but host an event off premises where alcohol is served. Did you know you could be liable?

In sum, California Restaurant Insurance can be tricky, but if you work with an agent who specializes in the restaurant and food industry, you can stop worrying and focus on what is important, your business!

Invensure specializes in insuring restaurants in Southern California. Speak to an industry expert at (800) 331-4700.