Restaurant Insurance San Diego – Protecting Your Business Future
Keep Your Kitchen Open With Specialty Coverage For Restaurants, Diners, Eateries & Other Food Establishments
Herriott & Mijailovic is a reputable agency which provides insurance coverage for restaurants and other food establishments in San Diego, California. Managing a profitable food service business involves much more than just splendid culinary skills, an inviting setting, and friendly servers. As a restaurant owner, you have to make it through a maze of potential risks that could possibly endanger the success of your culinary enterprise. To prevent losing your hard earned investment, your good reputation, and loyal clientele, it is imperative to obtain the right insurance coverage.
(619) 296-0005
At H&M, we offer a range of coverage options suitable for food serving businesses, such as general liability insurance, workers compensation, commercial property, commercial auto insurance, business owners policy (BOP), and more. Whether you own a casual dining restaurant in San Diego, fine dining restaurant, pizza place, steakhouse, fast food, or bistro, you must pick a policy that best suits your unique needs.
H&M is a family-owned company that has over 50 years of experience in insurance market. Over time, we have served numerous restaurant owners, other small businesses and individual clients by building solid relationships and providing continuous assistance that align with their changing needs. As we are an independent agency, we collaborate with major insurance suppliers such as Progressive, The Hartford, First American, Safeco, and many others. We have the necessary skills and resources to find the best coverage for your restaurant.
How We Make A Difference
Finding suitable coverage for small business can be quite challenging if you are doing it by yourself. You will most likely be overwhelmed by all the different options on the market. Instead of making wrong choices and acquiring insufficient coverage for your business, let H&M Insurance agency help you make wise decisions that will protect your business and save you from financial losses. Our priority is to make insurance selection simple and easy. With over 5 decades of collective experience, our agents are experts in finding the best policy for your needs.
Here’s why restaurant owners from San Diego choose us:
What Is Restaurant Insurance?
Serving food (and beverages) to the public comes with many risks specific to food industry. Restaurant insurance policy protects your business by paying expenses of covered risks; thus, saving you from significant financial burdens or even closing your business down. It helps you keep your doors open even if things go very wrong by protecting your culinary venture against unpredictable scenarios including liability claims, kitchen fires, equipment failure, slip-and-fall accidents, burglary, foodborne illnesses, and other risks.
Restaurant insurance maintains the stability and profitability of your gastronomic establishment, allowing you to concentrate on preparing delicious food, improving your guests’ experience, and increasing your revenues. Whether you own an Italian restaurant, a steakhouse, or a seafood place, a comprehensive, customized policy will help your gastronomic business operate without disruptions or delays allowing your to grow your business as planned.
What’s Included in Restaurant Insurance?
Insurance policy for a restaurant should be customized according to its unique requirements. When assessing these needs, consider features such as location, size, establishment’s operations, industry regulations, and so on. By taking all of these elements into account you will be able to ensure a complete protection.
There are many different coverages to choose from. Each one acts as an important level of protection that helps you endure all troubles without much disruptions of business operations. Some main coverages that cover the most common risks of restaurant business are listed below.
General liability insurance
Although not required by law, general liability insurance is usually mandatory for commercial leases. This is typically the first coverage owners of food businesses buy, because it protects against professional liability and potential lawsuits. This coverage helps pay medical and legal costs of bodily injury, personal injury or property damage, caused at your premises or by your product or service.
Workers compensation insurance
The law in California states that all employers must obtain workers compensation insurance, even if they have only one employee. This is one of the core coverages for anyone in restaurant business, because kitchen is an environment full of potential hazards like direct flames, hot stoves, sharp knives, and slippery floors. Kitchen staff risks suffering serious injuries such as burns, falls, muscle strains from heavy lifting, cuts, chemical burns, and so much more. Workers compensation coverage helps pay for the medical expenses and lost wages of these employees.
Business owners policy
Business owner’s policy (BOP) is special coverage because it bundles major coverages into one, at a lower price. It usually includes general liability, property insurance, and business interruption insurance. You can further customize BOP coverage according to your needs. For instance, you can add endorsements such as cyber liability insurance or inland marine insurance.
Commercial property insurance
Commercial property insurance settles costs for repairing or replacing any property that has been damaged by fire, theft, or other unexpected situations. This coverage can include physical structure of the building, movable assets (furniture, inventory), outdoor patios, landscaping, external signs, and similar property. NOTE: If you own a drive-thru, you will have to insure extra property (driveways, paved surfaces) that are not typically covered by standard commercial property insurance.
Commercial auto insurance
If you make deliveries or transport supplies using your own company vehicles, you must make sure they are insured, too. Commercial auto insurance covers accident-related expenses, repairs, medical bills, legal fees, and other costs. Commercial auto insurance usually includes liability insurance, bodily injury, physical damage, but other coverages can be added, too, such as umbrella insurance, towing insurance, etc.
Commercial umbrella insurance
Commercial umbrella insurance provides an extra layer of protection and increases limits of your standard liability policy. The purpose of umbrella coverage is to supplement your basic coverage and can be increased in $1 million increments. Umbrella insurance is recommended for anyone who has public present on the premises during hours of operation.
Liquor liability insurance
Liquor liability insurance is designed for any business that serves or sells alcohol. Even though it is not mandatory by law in California, if you run a restaurant that serves alcohol, obtaining this coverage is a wise decision. This insurance shields your venue from potential claims that you are legally responsible for damages caused by intoxicated guests, negligence or over-serving.
Business interruption insurance
Business interruption insurance, also referred to as business income insurance, protects your culinary enterprise from natural disasters that can cause you to shut your business down. It typically covers natural disasters such as fire, hurricanes, winds, or hail and helps compensate for lost income and daily operating costs such as rent, relocation costs, and wages.
San Diego Specific Coverages
Since San Diego, and the whole state of California, are in higher risk from wildfires and earthquakes, talk to an insurance agent and make sure you have enough coverage against these perils. Make sure your policy explicitly mentions these natural disasters so that you have bullet proof protection for your food and beverage venue.
Specialized Insurance for Restaurants in San Diego
While the above-mentioned coverages are considered a minimum standard for a typical restaurant, you should also think about adding additional coverages that are vital for this industry sector. The goal is to craft the policy to meet all your needs.
- Cyber liability insurance – safeguards you from sensitive data theft, identity theft, and other cyber crimes
- Inland marine insurance – also known as ‘floater policy’ protects your property (products, supplies, equipment, materials) that’s being transported or stored off site.
- Food spoilage coverage – reimburses the cost of lost food and beverages due to equipment failure, power outages, or mechanical breakdowns.
- Food contamination coverage – covers costs of replacing contaminated food, income loss, and medical costs.
- Equipment breakdown – covers equipment such as cash registers, refrigeration system, ovens, boilers, air conditioning, etc.
- Employment practices liability insurance (EPLI) – protects you from employee lawsuits claiming harassment, discrimination, emotional distress, wrongful termination, etc.
- Communicable disease rider – also called Infectious disease rider, provides coverage for losses from contagious diseases
- Water contamination – covers income loss due to water contamination
How Much Does Restaurant Insurance Cost in San Diego?
Not every restaurant faces the same risks, which is why the cost of insurance varies and is not the same for every place. For this reason, your policy rate is customized and then calculated based on several important factors. To get an accurate price, you will first have to provide information about your restaurant, such as:
- Square footage
- Building age and location
- Property type (owned or leased)
- Employee information (number, payroll, subcontractors)
- Commercial vehicles information (number, type)
- Inventory value (tools & equipment)
- Safety features details (fire and security system)
- Projected (gross annual) sales
- Claims history
- Additional insureds (vendors, lessors, contractors)
Remember that the cheapest quote is not necessarily the one with the best coverage plan. Take time to shop around for the best quote. If you don’t have time or enough knowledge about which coverages you need, it is best not to jeopardize your investment. Leave shopping around to knowledgeable independent insurance agencies who will do it for you.
Who Needs Restaurant Insurance Coverage in California?
Any business that prepares and serves (or supplies) food to public should obtain this insurance:
- Bistros
- Buffets
- Bakeries
- Coffee shops
- Caterers
- Cafeterias
- Concessionaires
- Deli or a sandwich shop
- Diners
- Drive-throughs
- Family restaurants
- Fast food & restaurant franchises
- Food delivery services
- Food trucks
- Fast casual diner
- Fast food restaurants
- Fine dining restaurants
- Food trucks or food stands
- Full-service sit-down restaurants
- Ghost kitchens
- Ice cream shops
- Juice bars
- Pizza restaurants
- Pop-up restaurants
- Pubs
- Seafood restaurant
- Sushi bar
- Takeaway outlets
- Thai food restaurant
- Vegan restaurants
Customized Coverages For San Diego Food Establishments – Get Your Free Quote Today!
Owning a food service business in San Diego can be a rewarding experience, but it also comes with increased risks that could lead to devastating losses. So, whether you own a restaurant that serves raw food, vegan food, Italian, or Mexican cuisine, restaurant insurance is crucial for your long-term success. Don’t leave anything to chance, enjoy a worry-free business ownership experience, stellar reputation and many repeat customers by hiring H&M agency to craft a perfect policy for your establishment. Get the best coverage and the best rate. Call today, (619) 296-0005.
Frequently Asked Questions
Restaurants face many dangers coming from scurrying kitchen staff, sharp objects, open flames, slippery floors, or contaminated food, and many more. The risks involve burns, cuts, accidental spills, guest injuries, equipment breakdown, slip and fall accidents, food contamination, food & drink liability, theft, vandalism, cybercrime, vehicle mishaps, and many more.
Policy rate depends on various factors like company size, your location, number of employees, history of claims, type of restaurant (fine dining, fast food, ghost kitchen, etc.), and many other determiners. It can range anywhere from several hundred to several thousand dollars annually. To get an accurate estimate, call your insurance agent.
If one of your wait staff makes a mistake by misquoting food ingredients, thus causing a customer to have an allergic reaction, or if there are allegations of negligence in food preparation, you can defend yourself with Errors & omission insurance (professional liability insurance) which is typically part of general liability policy. Professional liability coverage helps cover losses due to business errors, misrepresentation, and negligence. It also contributes to settling costs of legal fees (attorney, court, administration).
No. To get adequate protection against alcohol related liability claims, you must add liquor liability coverage. This is important coverage for restaurants serving or selling alcohol as it shields you from risks such as alcohol related injuries, property damage, medical expenses, and legal costs.