Pub and restaurant insurance protects your business, clients, and employees when revenue loss, accidents, or any other insured risk occurs. You don’t have to use your business’s revenue or savings to pay for damages, making it easier for you to meet regular financial obligations. Here are tips for finding the best insurance for your business:
1. Understand the Risks Your Business Faces
Understanding your business risks can help you identify the insurance policies you need. Here are some risks a pub and restaurant may face:
- Business interruption: You may need to close your establishment if your suppliers don’t deliver or if you face a health code violation
- Lawsuits: Your business may be susceptible to lawsuits from employees or clients if they slip and fall, have food contamination, or incur any injury on your premises
- Equipment breakdown: Your business can experience expensive repairs and lose income if core equipment like freezers and stoves breaks down
- Auto liability: Restaurants that offer food delivery services are susceptible to this risk, as their employees may be involved in accidents when delivering items
- Liquor liability: Intoxicated customers can increase your financial liability if they’re involved in fights or damage other people’s property after drinking at your establishment
Determine the best-suited insurance policies for your business based on the risks it’s susceptible to.
2. Find a Reliable Insurance Agency
You can ask for help from an insurance agency if you need clarification on your risk exposure. They’ll likely evaluate your business and recommend policies based on the kind of operations you run. Look for an agency specializing in the hospitality industry, as they’re likely to understand your problems better.
Be careful when assessing your agency options, as not all may be ideal for your business. Find one that takes the time to understand your operations and budget before recommending policies. Choosing one that focuses too much on selling its policies may leave you with more coverage than you need. While this is better than under-insuring yourself, it can be unnecessarily expensive.
3. Identify Factors That Can Affect Your Insurance Cost
Cost is a key factor to consider when buying insurance, as it’ll determine your business’s bottom line. Look for ways to reduce insurance premiums from reputable agencies instead of going for the cheapest option you find, as cheap can be expensive in the long run.
Understanding the factors that affect insurance costs can help you find ways to reduce your premiums. Here are some factors:
Your pub and restaurant’s location
Your insurance premiums will be high if your business is in an area prone to theft. You can decrease your premiums by implementing security measures, like installing alarms and hiring security personnel.
Revenue
Businesses with consistent revenue growth will likely pay lower insurance premiums than new ones. You can negotiate lower premiums if you’ve been in the industry for a long time by showing your revenue over the years.
Employee training
Businesses serving alcohol are likely to get lower premium quotes if they train their employees to serve drinks responsibly and recognize when clients are intoxicated. Consider enrolling your employees in training programs before approaching insurers.
Ask your insurer about the factors they consider when rating a business’s risk exposure so you can plan accordingly.
4. Consider Your Deductible Options
Many insurance policies come with a deductible—the amount you’re responsible for paying if an insured risk occurs. A high deductible will likely mean low premiums, whereas a low deductible will translate to high premiums. Some insurance companies also offer policies with no deductible, so you won’t need to pay anything besides your premiums should an insured risk occur.
Consider how likely you are to incur an insured risk and how much you can pay out of pocket when choosing a policy. A low- or zero-deductible policy may be more attractive than a high-deductible policy when insuring against an expensive risk that’s likely to occur.
Invest In Pub and Restaurant Insurance
Pub and restaurant insurance can protect your business from the financial repercussions of property damages and injuries incurred at your establishment. To find the right insurance policies, you need to assess your risks. A reliable insurance company can evaluate your business’s risk exposure and recommend the most suitable policies.
You can minimize insurance costs by identifying factors insurance companies consider when determining premiums. Also, implement risk-reduction measures, like installing security alarms and training pub personnel on responsible serving.
