How your restaurant’s liability premium is charged!

So the insurance industry and companies that writes restaurants, have three ways to charge for the risk. Some insurance companies will charge based on total sales, so as your restaurant grows, the premium gets higher & higher. (I happen to not like this way).

The second way is to base your liability premium based on the square footage of your restaurant. While this seems OK, if you add on banquet space or have a larger footprint, you’ll pay more than a takeout only place.

And then their are those restaurant insurance companies that have a flat charge as part of the Business Owners Policy (BOP in insurance lingo). The base rate is for how much you insurance your business property for - equipment, coolers, tables & chairs + stock and then add on the liability charge. Most of these restaurant insurance are the smaller regional one’s, who inspect your location and underwrite based on your restaurants claim history.

So we prefer to write our restaurant insurance with these smaller, regional insurance companies. Good insurance companies, very good underwriting and also, very good claims staff in-house. We use them quite a bit and have much success writing insurance with them.