Colorado Restaurant Insurance

Types of Restaurant Insurance

There are several types of insurance that are pertinent to restaurants. Some are mandatory, while others are optional but highly recommended. Let's take a closer look at each of them.

General Liability Insurance

General liability insurance is a must-have for any business, including restaurants. It provides coverage for common risks such as bodily injury, property damage, and personal and advertising injury. For instance, if a customer slips and falls in your restaurant, general liability insurance would cover the legal and medical costs.

It's important to note that while general liability insurance is comprehensive, it doesn't cover everything. For example, it typically doesn't cover employee injuries or damages to your own property. For these, you'll need other types of insurance.

Workers' Compensation Insurance

In Colorado, if you have one or more employees, you're required by law to have workers' compensation insurance. This type of insurance covers medical expenses and lost wages if an employee gets injured or sick on the job. It also provides death benefits to the family if an employee dies as a result of a work-related incident.

Workers' compensation insurance not only protects your employees but also your business. If an employee accepts workers' comp benefits, they typically can't sue your business for the injury or illness. This can save you from potentially costly legal battles.

Property Insurance

Property insurance covers damage to your restaurant's physical property, including the building itself and its contents. This can include everything from kitchen equipment and furniture to inventory. It typically covers damages caused by fire, theft, and certain natural disasters.

However, it's important to note that not all natural disasters are covered. For instance, standard property insurance policies usually don't cover flood damage. If your restaurant is located in a flood-prone area, you may need to purchase additional flood insurance.