12 Jan California Business Insurance: Restaurant edition
This coverage provides defense and indemnity should the restaurant be sued by a third party for bodily injury or property damage. The usual claim that falls under General Liability is for a slip and fall. For a restaurant, some typical claims that are unique to restaurants could be food poisoning, broken teeth, food too hot as in the McDonald’s coffee case.
This coverage is designed to insure equipment, business property, inside improvements and the building, if it is owned. For those who rent, it is important to review your lease to see what you are responsible for. A lease may say that in the event of a loss you, the tenant is responsible for everything but the four outside walls. So when you discuss coverages with your agent or broker, its a good idea for the broker to review the insurance sections of the lease (usually section 8 or 11) Property insurance and general liability are usually bundled together and referred to as a package.
Business Income Insurance
This coverage provides you with your profit and continuing expenses in the event of a covered loss where your business is unable to remain open. This coverage is designed to insure those you may still be responsible for while the restaurant is being rebuilt. The benefit period is generally 12 months, but can be extended under certain circumstances.
Workers’ Compensation is required by California law for any business with even just one employee. The premium is based on the size of total payroll. This coverage protects the employee who is injured on the job.
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