Other exposures that restaurants face include equipment breakdown, employment practices liability, and the requirements of the Affordable Care Act (ACA) as it relates to head count and number of hours worked, which are affected by provisions of the Act.
It is highly recommended that restaurant owners review their insurance needs with their agent or broker on an annual basis to ensure that their loss exposures are covered sufficiently by their insurance program.
For many restaurants, a Businessowners package policy (BOP) will be sufficient to cover the general liability, property and business interruption exposures. For example, some fast-food and limited cooking restaurants are eligible for the BOP, such as those where food is prepared cold or cooked in microwave ovens, electric warmers or toasters. However, when cooking appliances emit grease-laden vapors, such as deep fat fryers, the restaurant must have installed and must maintain an automatic fire extinguishing system that complies with the National Fire Protection Association NFPA standard No. 96.
Keys to Successful Restaurant Operations — Good Sanitation/Quality Control Practices and Sufficient Insurance Continued If the operation has an auto or workers compensation exposure, separate insurance will be needed. The same is true for liquor liability if alcoholic beverages are served, and for flood and earthquake if the restaurant operation is exposed to those perils.
More traditional or larger restaurants with sizeable commercial cooking operations are not eligible for the BOP policy, and the same is true for bars and grills. In such cases, commercial package policies designed to insure larger operations are available. Check with your agent or broker for details.