As a restaurant owner, you put a lot of time, effort, and money into making your business successful. From building a unique menu to creating the perfect cozy ambiance, you’ve done everything to give your customers the best experience possible when they enter your establishment. That said, owning any restaurant still comes with numerous risks that must be handled carefully to safeguard your investment. That’s where restaurant insurance comes in.
What types of restaurants need restaurant insurance?
The short answer is all of them. Whether you run a cafe, a fast food joint, or a fine dining restaurant, you need the right insurance coverage to protect your business from potential financial loss. While most restaurants face similar types of risks, the amount of necessary insurance coverage can vary depending on certain factors.
3 factors that affect the insurance coverage needed for a restaurant:
1. Type of restaurant
A small coffee shop will have different insurance needs than a large fine dining restaurant. The fine dining restaurant will probably have more equipment to insure and will need higher coverage limits for their food stock.
2. Size of establishment
A larger restaurant with more foot traffic has a higher risk of accidents, injuries, and property damage.
3. Menu offerings
Certain menu items have a higher risk of food poisoning or allergic reactions that could result in lawsuits. Having enough liability coverage can mitigate that risk.
Ultimately, it is a good idea to work with an insurance expert that you trust to determine your restaurant’s risks and create a customized plan to manage and insure against them. Personalizing your policy will ensure you have enough coverage where you need it and aren’t paying for too much coverage where you don’t.
Other things to consider for restaurant owners
In addition to restaurant insurance, there are other things you may need to consider when owning a restaurant. These include:
- Food handling permit: You’ll need a permit to prepare and serve food in Alberta.
- Business license: You’ll also need a business license to operate legally.
- AGLC license: If you plan to serve alcohol, you’ll need an AGLC license. Your staff will also need ProServe training.
- Proper ventilation: Adequate ventilation is essential in any commercial kitchen. Consider hiring a cleaning service to maintain your ventilation system.
- Fire suppression system: A fire suppression system will help protect your restaurant from fires. Make sure you have a contract in place for regular maintenance and testing.
- Monitored alarm system: An alarm system can help protect your restaurant from theft and vandalism. It’s also a requirement for most insurance policies.
Whether you operate in Edmonton, Calgary, Red Deer, or elsewhere in Alberta, restaurant insurance is essential for any restaurant owner who wants to protect their business from potential losses. By working alongside a trusted insurance advisor, you can determine the risks associated with your operations and create a customized plan to manage those risks.
