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Pepper, Johnstone & Company Blog

All You Ever Wanted to Know About Insurance

Why You Need Business Insurance for Your Restaurant

As a restaurateur, you already knew what the rest of the nation (and world) discovered during the pandemic—that restaurants are fragile entities that struggle to keep their doors open in the best of times, let alone during a global crisis. The margin of error is simply thinner for restaurants than most of us previously understood.

But whether you’re operating an older or brand new restaurant, there’s an insurance solution that can help you weather short and long term storms. Business insurance can be customized to meet your restaurant’s individual needs, ensuring that you have the coverage you need at a price you can afford.

Here’s why business insurance from Pepper, Johnstone & Company is especially crucial in the service industry, whether you’re operating a cafe, bar, restaurant, food truck, catering service, or similar establishment.

Labor Protections

In the restaurant business, you won’t find too many operations running with a skeleton crew. Food and beverage service (no matter the variety) requires an all-hands-on-deck attitude which, in turn, requires a larger workforce. At this moment when the service industry is seeing a drastic reduction in labor, protecting your business and your employees is more important than ever.

Workers Compensation  insurance protects our workforce and our enterprise simultaneously. Firstly, Workers Compensation insurance helps us remain compliant with local, state, and federal employment guidelines. Secondly, Workers Compensation insurance can protect our restaurant in the event of employee injury and can even cover workers compensation expenses. 

Without Workers Compensation insurance, you as the employer can be on the hook for damages.

Food/Alcohol Protections 

Unlike the construction company down the street or the apartment management company around the corner, your business sells consumable goods. You may keep high standards for your food preparation and alcohol sales, but it’s not always possible to prevent the worst from happening to your guests.

Liability resulting from illness/food poisoning (Commercial General Liability) or the overconsumption of alcohol (Liquor Liability) can break an otherwise careful business. Customers who claim an illness resulting from your food or injury/death resulting from your alcohol service can litigate your restaurant into bankruptcy. 

Designing the right insurance can help you mitigate the unique risks posed by serving consumable goods to the public, potentially saving you and your business from ruinous lawsuits, fair or otherwise.  

Employment Practices Protection

Chances are good that as the restaurant owner, you’re on location as often as you can be. Even so, you’re probably not running the show 24/7. No matter how highly trained your management team may be, your restaurant is still being overseen by error-prone human beings. 

Instances of discrimination, sexual harassment, unfair scheduling, and other severe, managerial oversights may occur at your restaurant. Though we hope for the best, we can’t see inside the people we hire to make sure they have the best intentions. 

Without Employment Practices Liability insurance, any civil suit or discrimination claim raised by your staff could eventually cost you your business altogether. Doctors have malpractice coverage and hazardous labor environments have death/injury protections, but what about your restaurant? With  Employment Practices Liability insurance, you can rest easy knowing that you’ve got a plan in place.

Protection with a Capital P

Each and every establishment in the service industry has its own quirks, risks, and business-ending dangers. But with a comprehensive insurance plan tailored to your establishment’s individual needs, you can get back to focusing on what’s truly important—making your employees, customers, and accountants as happy as humanly possible.

To start your restaurant, café, food truck, or bar off on the right foot, contact Pepper, Johnstone & Company today to see how we can protect you. 

Businesses of any kind don’t last long without insurance.

Simply put: insurance is more than just a good idea, it’s a necessity. To protect your restaurant or service establishment against the unique risks you face, you need bespoke coverage from Pepper Johnstone. To protect your business, your dreams, and your employees, call 938-200-8972 or request a quote online today.