Your livelihood depends on the survival of your restaurant, so it’s imperative that you protect it against any potential threat.

This is where property insurance comes into play.

Business property insurance comes in many forms to suit your specific needs.

Before purchasing the coverage, take a complete inventory of your restaurant property to determine how much you will need to insure.

This important step ensures that you will have adequate insurance coverage to continue operating your restaurant in the event of a covered loss.

Types of Property Your Restaurant May Need to Insure

Here’s a few examples of property that’s commonly insured:

• Buildings and other structures (leased or owned)

• Furniture, equipment and supplies

• Inventory

• Money and securities

• Records of accounts receivable

• Leasehold improvements and betterments you made to the rented premise

• Machinery/boiler

• Electronic data processing equipment (computers, etc.)

• Valued documents, papers, etc.

• Mobile property

• Property in transit

• Cargo

• Satellite dishes

• Signs, fences, and other outdoor property not directly attached to your building

• Intangible property (goodwill, trademarks, etc.)

• Business contingency for suppliers

• Ordinary payroll

• Extra expenses as a result of loss

Types of Property Insurance Policies

Basic property insurance covers losses due to fire or lightning, including the cost of removing property as a way to protect it from further damage.

Should you want to purchase more than basic coverage, you can buy a standard policy that provides coverage for extended perils, such as floods, windstorms, hail, earthquakes, acts of terrorism, explosion, riots, smoke, civil commotions and vehicles that damage your property.

Beyond that, coverage for vandalism and malicious mischief can also be included.

Are you buying enough property insurance for your restaurant?

One of the most important aspects of purchasing property insurance for your restaurant is making sure that you have purchased enough coverage to be adequately protected.

A typical insurance policy will provide the replacement cost value for your building and the actual cash value for your business property.

Replacement cost value is the amount that’s necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation.

Actual cash value, on the other hand, is the value of your property when it’s damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value.

Most property insurance policies include a coinsurance clause, which requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses.

Should you decide to purchase inadequate coverage for your property, you may be obligated to pay a percentage of all losses, even if they are listed in the policy.

O’Neill Insurance understands that determining your restaurant’s value is critical, so we’re here to help.

My name is Pat O’Neill and I work with food companies across the state, identifying and analyzing their risk exposures and helping mitigate those risks and designing tailored insurance and risk management programs.

I’d love to connect to discuss your restaurant business and tailor a restaurant insurance program that meets your specific needs. Call me at (330) 331-7960 or email me at ptoneill@oneillinsurance.com

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