Why Your Ohio Restaurant/Food Truck Needs Insurance

A restaurant, just like any other company, is a business. This means that it needs to have the same amount of protection as any other business. Restaurants are a little unique, as they deal with food. With food comes food safety, sometimes dangerous cooking areas and issues with liquor liability. Someone could get very sick from eating bad food from your restaurant, someone could cut a finger off or burn themselves while preparing food, or a person who has had too much to drink could damage your restaurant or hurt someone. This all might sound scary, but if you take the time to read this and talk to experts about why your restaurant/food truck needs insurance, you should be in good shape and your company shouldn’t have problems. From property insurance to liquor liability to life insurance, we’ve got you covered with some the information you’ll want to know in order to properly protect your restaurant. 



Types of Insurance to Consider

Property Insurance

This is a pretty basic policy for every business or company, but it is important to think about. Why does your restaurant/food truck needs insurance, specifically property insurance? It’s because your business has a physical location that needs protected. Your restaurant is a property that needs protection. If something were to happen to your property, you could potentially go out of business due to the money loss you would potentially go through. Protect your property because it is better to be safe than sorry.


General Liability

General Liability protects your company from, well, a lot of things. Say someone was walking in your parking lot and tripped over something only to fall and hit their head. They could turn around and try to sue your company. This is where general liability coverage comes in. It is best to let the insurance company take care of the medical costs than to put your restaurant in debt because you didn’t consider this when thinking about why your restaurant/food truck needs insurance.


Liquor Liability

People can do some dumb things when they are drunk. You’ll want to make sure your restaurant is not responsible for these dumb things. It very well might be if you do not have a liquor liability policy. This basically protects your restaurant from losses if a customer were to try and sue you or cause destruction to your property. If your restaurant serves alcohol, definitely consider this thinking about why your restaurant/food truck needs insurance.


Commercial Auto Insurance

If your restaurant has a car that it uses for business, you’ll need commercial auto insurance. This will protect your restaurant, should an employee be driving said company car and get into an accident. If the employee were to cause damage and or injury to the other car or person in the car, there is a good chance that your restaurant could end up with medical bills, car damage bills and potentially be sued for even more. It is important to have coverage in case something like this would happen. Even if your company doesn’t have a car, you may want to look into non-owned/rented auto insurance. This will protect your company from the same things if the employee was driving their own car to do something for your restaurant. This is a big thing to consider when thinking about why your restaurant/food truck needs insurance.


Workers Compensation

Not unique to restaurants, workers compensation is necessary for most businesses. If you have employees, you’ll want this. If someone, for example, were to severely cut their finger while preparing food for your restaurant and you didn’t have this… it could be very bad. Protect your restaurant because you never know when an employee could get injured, especially being around hot stoves and sharp utensils. 


Unemployment Insurance

For this one it’s important to check and see if your state requires this, because some actually do. With that being said, it is possible that it is just already included in the taxes you pay to the state. This all varies from state to state so definitely check on your specific state.


Life Insurance

This is another policy that you’ll want to check and see if it’s required. In some cases, such as cases where you have taken out a loan for your business, it actually is required. This just assures the loan provider that if something were to happen to you, the loan would still be paid back. Although this may not be required in all states, you’ll want to consider it when looking into why your restaurant/food truck needs insurance.


Restaurant Insurance

This does exactly what it says. It simply insures your restaurant. This policy provides your business with protection in case of property damage and also provides general liability. This is basically an umbrella policy designed specifically for restaurants.



Posted 7:24 PM

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NOTICE: This and all content is developed from sources believed to be providing accurate information. The information in this material is not intended to be used as tax or legal advice. Please consult with a tax and/or legal professional for detailed information regarding your individual situation. Some of this material was developed and shared by Cobos Insurance Center, Inc. to provide information that may be of interest. Cobos Insurance Center, Inc. is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
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