Restaurant Insurance – after all this time building up your business…
Pub and restaurant owners who buy business insurance mostly do so with the best of intentions. They do so in good faith but as insurance brokers we see more and more often that best intentions are simply not good enough when disaster strikes. All catering businesses are complex and no one knows your own pub or restaurant better than you. The problems you face are the same whether your business is big or small but often the smaller businesses don’t have the same internal expertise to call on. At Anthony Jones we can provide you with the expertise you need as far as organising your insurance is concerned. We know there is little point in buying covers that are inadequate for your needs or indeed avoiding covers totally. Your reputation is also crucial so best avoid anything that might deter customers from saying you are fabulous.
At Anthony Jones we will never recommend something based on price alone – we will never guarantee to beat any price you have quoted. We will guarantee that what you buy will meet your needs in the event of a loss. And, to add value to our proposition, we are partnered with Zurich and Reputation.com to help you manage your online reputation.
Let’s take a look at the basic covers you will need to insure:
If you own the building you occupy or have responsibility for it under contract then you need to insure the structure, glass in windows and the shop front. Most of the covers are obvious – fire, storm and flood for example, but you might need to consider subsidence in addition. A number of insurers provide “All Risks” covers to include Accidental Damage.
Tenants Improvements is something we often see left blank on a proposal form. This is a cover for improvements done to the premises when you are a tenant. If you change the building structure of your restaurant by adding say an office or a storeroom, or alarms, CCTV, air conditioning/ ventilation equipment or roller shutters then this is additional cover you should allow for.
Terrorism is a cover that isn’t provided directly by Insurers. This is a personal decision that needs consideration probably hugely influenced by where your restaurant is and whether you think a terrorist action might take place.
Most insurers now provide a minimum limit of loss of income cover should your restaurant suffer a major loss and you are unable to trade. Some have extended the time they will cover you to get back up and running again. Never insure for less than 24 months .You need to understand what Gross Profit is as this is also a cover that could leave you underinsured both in the event of a catastrophe but also in the more likely event of smaller disruptions that might leave you unable to trade. You may suffer issues such as being prevented access to your pub or restaurant, loss of attraction, loss of computer data, accidental failure of internet services, accidental failure of public utilities, telecommunications accidental failure or even staff winning the lottery!
Anthony Jones can help you to understand the cover you need. We can work with you to ensure you have the right cover and at the right levels.
Contents Insurance – Fixtures and Fittings
The vast majority of what you need to be concerned with will be the cost of the purchased stock you carry at various times in the year. This may vary considerably around the amounts of food you are storing and also alcohol. You would need to protect for the loss of frozen and refrigerated stock if a fridge or freezer unit fails.
You will also have to consider fixtures and fittings such as shelving, display units, refrigerators, freezers as well as furniture. Electrical and computer equipment are increasingly valuable features in restaurants.
In all its forms the loss of money needs to be protected against. Most policies provide standard limits in tills, in transit or in a safe and will include cover if a member of staff is attacked during a robbery or a burglary. Think carefully about the festive season when you are likely to have more cash to hand than the rest of the year.
If you employ people then you are required by law to protect your staff against injury, illness or disease. Regretfully, we are seeing increasing incidents of staff assaults.
Public Liability and Product Liability
Public liability covers your liability for loss damage or injury to a member of the public. In the restaurant trade there are multiple opportunities for members of the public to suffer injury or damage. Slips and trips are very common as are claims for food poisoning, allergic reactions or even alcohol poisoning. Corporate Manslaughter and court attendance costs should be included as standard.
Loss of license insurance
This covers you against loss of license should there be a statutory removal process, providing you aren’t in breach of a requirement in the first place.