Restaurant Insurance in Vermont

What is restaurant insurance?

Plenty can go wrong in a restaurant, from dropped plates to kitchen fires. Restaurant insurance offers Vermont restaurants protection against many of the major things that can happen.

Restaurant insurance is tailored to meet the risk mitigation needs of sit-down eateries. Policies may protect eateries against a variety of liability and property risks.

What eateries in Vermont are restaurant policies for?

Most Vermont eateries should have insurance, as not insuring can have dire financial consequences. Restaurant policies tend to be the right choice for places with at least some sit-down dining. For example, these policies are often used to insure:

• Upscale restaurants, fine dining restaurants, and steakhouses
• Family restaurants, buffets, and pizzerias
• Farm-to-table restaurants and vegetarian restaurants
• Fast-casual restaurants, bistros and cafes
• Coffeeshops and teahouses

For businesses that serve food in other settings, such as caterers and food trucks, another insurance policy would probably be preferable. There’s much overlap between these businesses and restaurants, but there are also differences that require slightly adjusted coverages.

What property insurance coverages do restaurants need?

The property insurance coverages that a particular restaurant needs depends on that restaurant’s space and equipment. There are several of these protections that might be needed:

• Commercial Building Coverage: Might protect a restaurant’s building, if the restaurant owns its space. Can also cover other structures, like an outdoor dining space, deck, or parking lot.
• Commercial Contents Coverage: Might protect a restaurant’s kitchen equipment, small wares, dishware, food, computer system, furniture, decor, and more.
• Tenant’s Betterment Coverage: Might protect the changes a restaurant makes to its space if leasing. Usually covers both front-of-house and back-of-house.
• Food Contamination Coverage: Might protect against the loss of food due to spoilage, when the spoilage is caused by a covered incident. Covered incidents might be power outages, fires, and similar perils.

What restaurant liability insurance coverages should restaurants have?

Restaurant liability insurance coverages generally offer protection against claims where the restaurant could be held responsible for harm. Some to consider are:

• General Liability Coverage: May apply if a customer or vendor sustains injuries in a routine accident, such as slipping and falling. Typically also applies to defamation and false advertising lawsuits.
• Liquor Liability Coverage: May apply in scenarios if an inebriated customer is involved in an incident. Could cover physical fights, sexual assaults, DUIs, alcohol poisonings, and other incidents.
• Product Liability Coverage: May apply if a customer falls ill due to improperly prepared food or beverages. Typically also includes protection against incidents like choking or other food-related injuries.
• Umbrella Liability Coverage: May apply when a lawsuit surpasses the limits of another restaurant’s liability insurance.

Are special events that restaurants host covered by a restaurant policy?

Restaurants that regularly host large private gatherings should work with an insurance agent who understands restaurant policies well. Many policies offer coverage for rehearsal dinners, fundraisers, large birthday parties, and other private gatherings. It’s important to confirm that a chosen policy does indeed cover the types of events that a restaurant hosts, though.

How much do restaurants pay for their insurance?

The cost of insuring a restaurant varies. The restaurant’s location, building size, foods and drinks, annual sales, and other details can all impact cost.

To get an accurate quote, restaurants can work with an independent insurance agent. An independent agent will be able to check custom quotes from several insurance companies.