If you own a restaurant, it's important to periodically review your business insurance policy, particularly when it's time for renewal. Changes can occur quickly in a business that may require making policy adjustments. It's a good idea to keep your policy updated as your establishment evolves. Here are important questions to ask when insurance renewal time approaches.
Review your inventory and operations as you take note of business changes since your last policy renewal. Inventory can be seasonal and often affected by broader economic conditions, such as supply chain slowdowns.
If you've purchased a high volume of products that didn't sell and are just occupying valuable space, it can result in filing an insurance claim to cover losses. But what if coverage for unexpected losses is limited? You may need to search for a new policy.
A growing concern among businesses of all types is cybercrime. How well does your cybersecurity protect your digital network? If all you are using is antivirus software, your system can still be vulnerable to hackers. In fact, any cybersecurity solution has its limits. That's why it's important to carry cyber insurance to cover data breaches.
Restaurant equipment can be expensive to replace, which is why it's better to choose a policy that pays replacement value rather than actual cash value. It's advantageous to assess equipment value periodically so that you can accurately gauge how much the payout would be for a replacement in the event of a disaster.
A standard business insurance policy has coverage limits as well as exclusions. You should ask your insurer specific questions about exclusions listed in the policy if they seem vague. An exclusion allows the insurer to avoid paying for damage if the exact criteria for damage aren’t met. An example of an exclusion is how fire coverage doesn't cover every type of fire, such as one caused by negligence.
The more your restaurant evolves with equipment and ambiance to attract new patrons, the more you need to review your policy regularly. Improving the value of your restaurant assets can mean shifting to higher coverage limits. Getting your commercial property professionally appraised helps clarify your insurance coverage needs.
During the pandemic, many restaurants were able to survive by taking orders electronically over the internet. The more dependent you become on an internet connection to generate revenue, the more you need to protect your networking assets.
The restaurant industry has faced economic uncertainty due to the pandemic and supply chain crisis. These factors have caused many small restaurants to fold. Many restaurants have had to renovate to accommodate social distancing should another outbreak occur.
Restaurants have gone through many profound changes in recent years, which can affect insurance costs. Make sure your establishment has the proper coverage to handle unforeseen mishaps. Contact us at Humble Insurance Group for more information about renewing restaurant insurance so that your assets are well protected.
