Insurance for restaurant owners can quickly add up with all of the necessary policies that you must include, but before you dive into all of the different policies, it is important for you to understand WHY you are being charged at the rate in which you are being invoiced.
1. Location: your restaurant building, assets and overall location is your second home and should be valued and protected as such. Your restaurant has immense value whether it’s on Hopkins Avenue Aspen, Pearl Street in Boulder, or even Larimer Square in Denver. Regardless of your culinary coordinates, a prime location for business but will likely need more protection.
2. Volume: everyone knows that a busy restaurant is a happy restaurant! Based on how much traffic your restaurant draws, how many employees you have and the size of your space you may have a higher rate of insurance.
3. Type of property: every building tells a unique story. An older building brings a vintage ambiance and a newer building can create a modern or classic vibe. Based on the type of aesthetic you are going for in your space, your insurance rate will fluctuate. A new building, for example, will have a lower insurance rate than an older building due to the likelihood of repairs.
4. Activities: maybe your bar is known for your awesome mechanical bulls, or your pool tables, or your jukebox, or even your off-campus catering! It is the life of your restaurant. Whatever it is that your bar is known for, it may need more protection to keep the heart of your restaurant beating.
5. Hours of operations: the later your bar is open, the more traffic it will draw. But like my mom always said, nothing good ever happens after 1 a.m.. The longer the hours and the later the hours, the more your property will need extra protection.
6. Proportion of alcohol sales: Benjamin Franklin once said that “beer is proof God loves us and wants us to be happy” and your customers probably experience this first hand at your restaurant. The more your customers love beer, the more their defense mechanisms drop and the more your property will need a little bit more protection.
7. Loss history: based on how much your restaurant has lost over the years, the higher your insurance rate will be. Always take extra precautions to ensure that your restaurant is up to date with the latest technologies, equipment and employee protections and your insurance rates will drop!
8. Years in business: your years of experience and expertise will make you a more trustworthy tenet for your insurance agent.
9. Levels of coverage: the more coverage you buy, the more you pay initially. However, you will reduce long term expenses and ultimately end up saving more money.
10. Lease requirements: based on the fine print of your lease, you may be required to purchase more coverage.
Now that you know what goes into the price of insurance, click to dive into the different policies and which protections are best for you and your property.