I love to eat at a great restaurant. Who doesn’t? I really love to eat at small local joints and food trucks that have their own personality and unique menu items. I’ll admit I’m an insurance nerd though because I always think about the insurance needs of these places when I’m eating there. What kind of insurance does a restaurant in Oklahoma need?
Food truck and restaurant owners have a wide range of issues to address before they ever turn over the “Open” sign in the morning.
- Do I need to update my menu?
- Are my cooks and servers going to be here today?
- How do I market my place to get more customers?
- Are we making a profit?
One area that’s often overlooked or rushed through by Oklahoma restaurant owners, is having insurance tailored for their specific type of restaurant. Food trucks, fast food, casual dining, or fine dining, are all types of restaurants, but the insurance needs of each are not the same.
Every business has risks that can lead to bankruptcy if they happen. Often these risks are not the ones you would assume. For many of these risks, there is an insurance policy that can help protect the financial future of the business.
Want to test your restaurant insurance knowledge? Take this quiz.
The right insurance plan can protect your restaurant or food truck from a variety of risks. Here are some risks that may not seem obvious but can lead to tremendous loss.
- Cyber and Media Content Liability: Does your Social Media and Website display media material that has a copyright that you don’t have permission to use? What about images and comments that could be seen as offensive to viewers? Your online liability is a real risk.
- Data Breach: If your business takes credit card payments or collects any type of personal data for “reward” plans, your business should protect that data from theft, loss, or unauthorized disclosure. This coverage can provide coverage for contacting and protecting your customers if this happens.
- Employment Practices Liability: Protects you against accusations of discrimination, sexual harassment, or wrongful termination. Don’t think it can’t happen to you.
- Business Crime Insurance: Protects you against fraud, theft, forgery, or robbery.
- Business Income Interruption: Provides income while your business is being restored because of a covered loss. Could your business survive with no income while your restaurant or food truck is being repaired?
- Equipment Breakdown: Pays for direct damage and the resulting loss of income caused by or resulting from equipment breakdown. The world is an imperfect place. There is no convenient time for the grill, fryer, or freezer to break down.
Workers Compensation insurance in Oklahoma is not optional if you have employees and has to be a part of your insurance plan.
Insurance is usually included among fixed costs in a restaurant’s monthly operating expenses, so the price is something that cannot be ignored. There is no standard cost of insurance since it is influenced by a number of factors.
There is really no standard restaurant policy that protects all restaurants the same either. This is why having a good insurance advisor is just as important as having a good CPA. Your insurance advisor should be able to help you find the policy and coverage that addresses the unique exposures that your restaurant faces.
Many restaurants have catering operations. Some have food trucks for events. These practices have unique risks that may not be covered by a standard restaurant policy. A good insurance advisor should conduct annual reviews to make sure the policy meets the changing needs of the business.
Business Owners Policies in Oklahoma can be more efficient when the restaurant has a variety of insurance needs. It extends the obvious liability coverage for slips and falls at the core, but coverage can be added for the business property, inventory, and even the sign and building if you own it.
Adding the additional coverages listed above is something that any type of restaurant owner should strongly consider.
Many restaurants fail within their first three years. It usually has less to do with what’s on the menu than it does with their ability to manage operating costs. Having a claim without proper restaurant coverage can result in the loss of the business.
Entrepreneurs feel like they have to do it all, and at first, you will. But the sooner you build your team, which includes your insurance advisor, the easier it will be to enjoy the benefits of being a business owner.
We would welcome the chance to visit with you about building the most efficient insurance plan to protect your restaurant or food truck business! You don’t need to be an insurance expert. If we’re on your team, you have an expert in us!
See you at lunch!
The information contained in this page is provided for informational purposes only. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.