While Life Insurance covers the risk of death of a person, General Insurance is meant to cover the risk of any damage caused to property. A particular periodic payment, known as the premium is paid and in the event of occurrence of the damage caused to the property, the whole insured amount is payable to the person owning the property.
In a restaurant company, besides covering the risk of damage to the property, the lives of employees and the visiting guests are also covered. And both the life insurance and the general insurance are combined, and a comprehensive insurance policy is drawn. The following are the risk taken into consideration while making restaurant insurance in Houston.
- Liability arising out of food-borne disease
- Any physical injury caused by the employees or customers
- Physical damages caused to the movable and immovable properties
- Loss arising due to interruption to business
- Cyber liability
The comprehensive restaurant insurance in Austin covers the following:
- General Liability covers injury due to slipping in the restaurant. Dropping of hot coffee on a customer is also included
- Liquor Liability provides financial protection, in case, a third party meets an alcohol-related accident such as a car accident after consuming alcohol or beverages in the restaurants
- Product Liability arises when a customer falls ill after consuming foods in the restaurant
- Cyber liability covers theft or hacking of any sensitive information from the hard disc of the computer of the restaurant by cyber attack
- Commercial Property; including inventory
- Workers’ Compensation for injury of workers, covering medical expenses lost wages and help for funeral expenses
- Commercial auto insurance to cover vehicles of the restaurant
- Employment Practice Liability Insurance (EPLI) protects business if any action is brought against restaurant for discrimination, harassment or wrongful termination; brought by current or ex-employees
Cost of the Business Owners Policy (BOP)
The cost varies according to the underwriting results of the owner and the coverage facilities offered in the policy. However, the following issues will affect the cost of the insurance:
- Number of years the restaurant is in business
- Average number of customers served per year
- Total number of employees
- History of past claims made by the restaurant
- Type and age of the restaurant building owned, such as metal, masonry, and frame
- Fire or security system installed by the restaurant
- Reasonable market price of inventory, furniture, and fixture, equipment, and contents
As per an estimate made by the experienced insurer, the average premium cost for a BOP or commercial package will range between $1,150 and $ 10,000 per year which is further dependent upon the size, sales volume, and organizational structure.
Due to the very nature of the activities of a restaurant, the evaluation of premium is a very complicated affair, and the insurance companies are usually skeptic in their computation of premium and the sum assured.