Getting Commercial Auto Insurance for Your Restaurant

The restaurant industry is very competitive. Even the smallest mishaps could financially run a restaurant. That’s why so many restaurants need comprehensive business insurance coverage.

You likely know why you need business for your restaurant. There is a risk of damages from fires, spills or other mishaps. Employees might need workers’ compensation resulting from an on-site injury. Customers may make claims against the business if they get sick from the food, or fall in the lobby. In these cases, restaurant owners often look to business insurance for financial help.

Restaurant owners need to protect more assets than just those inside the establishment. Some restaurants may need commercial auto insurance.

Why Commercial Auto Coverage?

Even though you’re in food service, you still run a business. Commercial auto insurance is a valuable part of business insurance coverage. Restaurants can benefit from this service.

• Catering businesses may deliver food, staff or preparation items to venues.
• Restaurants of any size may deliver food. Delivery pizza businesses, national restaurant franchises, and local stores may all employ drivers.
• Franchise owners may own vehicles provided by the company.
• Employees may drive vehicles in the course of their business duties.

In any of these scenarios, you and employees are representatives of the business. If an accident occurs while driving for business purposes, the business may suffer.

Without insurance, the restaurant may have to pay for damages or injury lawsuits out of pocket. Therefore, a commercial auto insurance policy can protect business owners from these losses.

How to Create a Policy

When insuring your restaurant, consider how best to apply commercial auto coverage.

• Include all drivers in the establishment on your commercial insurance policy.
• Place all cars owned by the business on the policy.
• If employees drive their own cars for work, offer them commercial auto insurance. Some laws require you to offer employees this policy, while other employees must buy their own coverage. Don’t let employees drive without commercial auto insurance.
• Take note of the reasons you use the vehicles. If you use it for catering, the risks are different that if someone drives a car to deliver pizza. Make sure your policy reflects accurate usage.
• Make sure your policy coverage protects everything you carry in the vehicles. These may include promotional materials, electronics, cooking equipment and of course, the food.

Furthermore, make sure that you hire safe drivers. Require them to use safe practices when driving on behalf of your company.