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8 Tips on Choosing an Insurance Provider for Restaurants

Did you know that 75% of all businesses are underinsured? This can leave vulnerable establishments open to all sorts of serious losses in the event of an unforeseen situation. Restaurants, in particular, are especially prone to these types of uninsured losses. There are many potential threats that a restaurant faces every day, from property damage to food contamination.

For these reasons, restaurant owners need to find an insurance provider that can protect them from these unexpected expenses. Unfortunately, finding the right provider is easier said than done.

That’s why we made this list of tips to keep in mind when looking for insurance companies for your business. That way, you know you’ve made the right decision.

Eight Things To Keep in Mind When Choosing a Restaurant Insurance Provider

It’s a sad fact that many insurance providers don’t have their client’s best interests in mind. Many can’t even pay when a serious loss occurs. So how do you prevent this from happening?

You can start by following these eight tips when looking for restaurant insurance.

1. Ask Around Your Network

Before you hop online to find an insurance provider for your restaurant, consider asking around your networks. Friends, acquaintances, and even family members might have some suggestions about who you should pick, and who you should avoid.

If you know any other restaurant owners in the area, then ask what insurance provider they go through, if any. This can help provide you with some leads to follow vs having to trust a stranger’s word on the internet.

2. Is the Insurance Provider Accredited and Financially Stable?

An insurance company needs to be accredited by the government. This makes sure that they follow rules and regulations. For example, certifications like those provided by the NAIC Accreditation Program are typically a good sign that you can rely on the insurance company.

You should also make sure that the company is financially stable. This is important if you ever go through an emergency that requires payout on your policy.

You can typically ask for an insurance provider’s financial statements if you want to learn more about this.

3. Make Sure Your Provider Offers Common Types of Insurance Coverages

At a bare minimum, you should at least consider getting property insurance and general liability insurance. These will help protect you from damage to your property, or unexpected injuries that occur in your restaurant.

However, these are far from the only types of restaurant insurance to consider. Depending on your needs and budget, try to take on a lot more if you want to cover your bases.

If you want to learn more about the different types of restaurant insurance, check out our guide here.

4. Do They Also Offer Additional Protection?

If you can afford it, then additional protection helps you deal with more specialized threats. For example, loss of business insurance provides some extra help if you experience a sudden drop in sales. Food contamination insurance can help replace all the contaminated food in the event of a power outage.

And, specific peril insurance can help protect against things not covered by general liability, like certain natural disasters. This type of additional protection helps fill in any weak spots in your insurance policy.

5. Does Your Restaurant Serve Liquor?

If you have a liquor license for your restaurant, then you will likely need a liquor liability policy. Many states require that restaurants have one. However, even if you don’t, it’s still a good idea to have it.

This policy protects you from potential drunken customers that drink too much and cause damage. Which, depending on the location and clientele of your restaurant, can be essential for any owner.

6. Don’t Be Afraid to Ask About Price

Don’t be scared to ask your insurance provider about how much their policies cost. A good provider will be able to work with you to fit your budget needs. They’ll do this by providing multiple options at affordable prices.

Ideally, you want to find the right balance of coverage with affordability. If the provider doesn’t offer you enough options, then try to keep shopping around. It can take multiple quotes before you find the perfect policy for your needs.

7. Read Online Reviews

It’s important to see what other clients think of this insurance provider. Online reviews are a good place to start. See whether the reviews are generally positive or negative.

A lot of positive reviews is a good sign. Just take the occasional negative review with a grain of salt. After all, you don’t know the person writing it. However, a lot of negative reviews is a clear sign that the company might not be for you.

8. Try Testing Their Customer Service

Quote shopping is also a good way to test out a provider’s customer service. Good customer service is crucial when you’re trying to receive payments promptly. You should try to gauge whether they’re professional and fast in this manner.

Try getting in touch with customer service and asking questions. If they respond in a quick and informative way, then it’s a good sign that you can trust them.

Need Restaurant Insurance In NJ? Contact Harrah & Associates, Inc.

We hope this article helped you learn some tips when searching for a restaurant insurance provider. If you live in the NJ area and still aren’t sure where to start, then consider Harrah & Associates, Inc. For over six decades we’ve been serving the community with the protection they deserve by working with a wide network of insurance providers.

That way, we can provide you with coverage for your business that’s both affordable and comprehensive. If you want to find out more about how we can help your restaurant, then contact us today.