Among all the other restaurant sectors, the fast food division is growing exceptionally fast. This is according to the Bureau of Labor and Industries, which predicts an above average growth in the sector throughout 2018. Restaurant insurance in Texas is one of the operational expenses that cannot be overlooked as you need to protect your investment from unforeseen perils. Here are 5 insurance policies that you should consider applying for.
1. Commercial general liability
According to the National Floor Safety Institute, over a million restaurant guests are injured as a result of slips and falls. This could result in your establishment being sued. This type of policy covers the medical and legal costs incurred in such an event.
2. Commercial property insurance
This type of insurance covers your building, its contents, and any business assets against damages from fires, natural calamities such as strong winds and floods. The coverage for this type of insurance depends on the policy you acquire. For instance, you could purchase a policy that extends to the exterior and covers your landscaping and signage.
3. Product liability insurance
According to the Centers for Disease Control and Prevention, about 128,000 people are hospitalized due to food poisoning every year. While you may have taken all precautions to prevent food poisoning, it is still a major concern for fast food restaurant owners. This type of restaurant insurance in Texas protects you from lawsuits that are directly related to the foods served in your restaurant.
4. Business interruption insurance
Calamities such as fires or natural disasters could cause you to temporarily close your fast food restaurant resulting in lost income. This type of coverage compensates you for the profits you would have earned if the disaster did not occur. Past financial records will be used to determine the profit figures. It covers your operational expenses such as lease payments and other utility fees that must be paid even though the business is temporarily closed. It also covers your expenses if you need to temporarily relocate the business while repairs to your business premises are completed.
5. Workers’ compensation
As a fast food restaurant owner, you should provide a safe and healthy working environment for your employees, but even with this, accidents could still happen. This type of policy covers you against any legal and medical expenses if an employee is injured at work. The employee is also compensated for lost wages as a result of missing work.
Before engaging an insurance agency or agent, make sure they are knowledgeable about the local and state laws about insurance. Ensure that he evaluates your business, understand its weak points before recommending the right insurance policies for your specific case.
