Tips for Buying Insurance for Your Food-Services Business

If you run a food-services business, you likely know that you need to get insurance coverage. This is important because you invest a ton of money in the equipment that you need to prepare the food and package it safely. If this machinery were to stop functioning, you would lose a ton of money because you would not be able to produce the product that you need to sell. In many cases with food services, you can't even prepare food ahead of time to build a buffer in case the machinery does break down because the food would spoil if you did. Here are some tips for purchasing food-services business insurance.

1. Make Sure That the Policy Covers Accidents in the Dining Room, in the Kitchen, and Away from the Restaurant

When you own a food-services business, you are working with knives, hot water, ovens, and other potentially dangerous items. As a result, you are going to need to make sure that you get an insurance plan that covers all of these potential injuries in the kitchen itself. If you are physically serving the food to customers, then you are going to need to get insurance that will cover any accidents or spills that might happen should your waitstaff trip and fall. Finally, if you have any part of a catering aspect to your business, be absolutely sure that you get coverage that will help you pay for any potential damages to property or that your employees might sustain while out. Having all aspects of your food-services business covered can help you feel much more confident.

2. Don't Downplay the Possible Risks

If you frequently serve flaming drinks, you are going to have to state that to the insurance company in order to make sure that you get underwritten for the correct amount. The last thing that you want is for a customer's hair to catch on fire and for you to not have the money to settle. By being sure that you are upfront about all of the possible risks you have with regard to your business, you will ensure that your insurance company trusts you and is charging you the correct amount. The cheapest way is not always best.

3. Get More Insurance Coverage Than You Think You Need

The risks for a food-services business are so varied that it can be difficult to get an insurance policy that doesn't feel like overkill. It is not likely that a customer's hair is going to catch on fire, but you need to be prepared in case it does. Be sure that you feel like you are getting way too much insurance coverage. It's better to pay extra every month than to have your business go bankrupt after one big, uncovered accident.

For more information, talk to a company such as Paris V Mastroddi, Inc.