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Understanding The Unique Insurance Needs Of Restaurants

The United States is home to some of the best dining cities in the world, offering dazzling arrays of diverse cuisines and inventive dishes. From small, rustic cafes to opulent, breathtaking dining rooms, chefs and owners strive to grow their restaurants and establish a place in their local dining scene. Unfortunately, there can be obstacles to a restaurant's growth and success, but having the right kind of commercial insurance protection can help restaurants and cafes weather any kind of storm. In today's blog post, we'll look at the unique insurance needs of restaurants and cafes, and demonstrate how having the right kind of insurance can help protect restaurant owners for the immediate and long-term future.

The Perils of Utility Interruptions

One of the most devastating threats a restaurant can face is the loss of power and utilities. Unlike a retail or office establishment, restaurants, delis and cafes face a critical time-sensitive deadline, as a prolonged power outage not only means the shutdown of the business, but potentially the loss of some, if not most, food inventory. A utility outage caused by windstorms, heavy hail, or a fire could result in catastrophic losses for a restaurant as they cope with losing customer revenue, restaurant repair costs, and replacing thousands of dollars in perishable inventory and raw goods that require freezing or refrigeration. However, having Outside Utility Interruption coverage can help cover the loss of income as well as food spoilage costs.

Cyber Liability and Identity Theft

A growing concern among many businesses, particularly restaurants, is the increase in cyber attacks, data breaches, and customer identity theft. Restaurants, delis, and cafes rely on credit card processing in order to process customer payments, but the high volume of credit card transactions can make their systems a prime target for hackers and identity thieves. Cyber Liability Insurance can help protect restaurants from losses and legal damages related to breached company financial data and stolen customer identities.

Critical Equipment Failures

Restaurants rely on many types of kitchen appliances and computer equipment in order to create dishes, take orders, manage inventory, and process customer payments. When a major piece of kitchen equipment fails, or an in-house computer and payment system experiences problems, this can also lead to significant delays and losses for the restaurant. Thankfully, equipment failures can also be covered by Equipment Breakdown Coverage, which protects restaurants from losses caused by power surges, employee errors, mechanical failures, and other issues.

Commercial Auto Concerns

A significant number of area restaurants, delis, and cafes rely on commercial vehicles to make deliveries, pick up fresh ingredients and raw materials, or perform catering services. However, if a restaurant vehicle is involved in an auto accident, the restaurant may be held liable for damages and medical expenses if they lack the proper commercial auto coverage. The same liability threat is true if an employee uses their personal vehicle for restaurant deliveries and is involved in an accident while on the clock. Quality Commercial Auto coverage can help protect the restaurant from lawsuits and damages related to accidents involving employees and/or company vehicles.

A majority of restaurants, delis and cafes would be devastated financially to have a major delay in utility services, breakdowns in essential equipment, or damages related to a commercial auto accident. Thankfully, Aegis Insurance & Financial Services offers restaurants a full range of top-quality, reliable commercial insurance solutions, all tailored to the unique restaurant industry. The friendly and knowledgeable team at Aegis can help with all your restaurant insurance needs, from Business Utility Interruption coverage, Equipment Breakdown coverage, Commercial Auto coverage, General Liability, Workers Compensation, and Commercial Property coverage. Contact Aegis at 713-850-7622 for more information, or go online for a free quote today!

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