A standard businessowners policy will help protect you from many of the most common risks facing small businesses, like property damage and liability claims, but you know the food service business has its own set of unique risks. So how do you protect against them?

If you've started (or dreamed of starting) your own food business, you may be wondering what types of restaurant insurance coverage you need. You may be tempted to purchase a standard businessowners policy (BOP) and leave it at that, but that decision could ultimately leave a bad taste in your mouth if you're not fully protected.

Here at UFG Insurance, we have a big appetite for restaurant coverage, and a long history of service that has taught us about the unique needs of this sector. Here's a look at four additional coverages we recommend our restaurant clients consider — all of which are available in our BOP-Pro Restaurant policy packages.

4 top restaurant insurance coverages you need to think about

Food contamination
Foodborne illness is a scenario no restaurant owner wants to contend with, but it's crucial to have protection in case you ever do. Food contamination coverage may pay for cleaning equipment following a board of health visit, select medical care for employees, and help rebuild your brand reputation through advertising. 

Outdoor-patio dining
The boom in outdoor dining is great for customers, but a potential headache for restaurant owners who face more of their business property exposed to the elements, such as theft and damage. Outdoor-patio coverage aims to protect your restaurant's outdoor tables and seating, canopies, awnings, decks and walls — valuable protection typically not included in standard businessowners policies.

Alcohol inventory at menu-selling price
You bought your alcohol inventory with the expectation of selling it at menu price; you should have insurance coverage that reimburses you that way. But this can be a hard benefit to find, as many standard businessowners policies only pay the actual cash value or replacement cost for lost inventory. At UFG, we're proud to offer coverage for alcohol inventory at menu-selling price as part of our BOP-Pro Restaurant policies.

Catering penalty reimbursement
Another coverage with value usually only understood when needed, catering penalty expense reimbursement may pay fees incurred if a restaurant is unable to cater a planned event due to a covered property loss (such as storm damage to the kitchen). With this coverage in place, you can better focus on cleaning up and getting back to work instead of figuring out how you're going to pay contract penalties.

What about restaurant insurance coverage limits?

When it comes to protecting your restaurant business, it's not just the specific coverages that matter — it's how much you're covered for. 

Food service businesses typically have tight margins and high overhead. A study from the JPMorgan Chase Institute found that most restaurants only have enough money to survive about two weeks if they're forced to close. That's why appropriate restaurant insurance coverages and high coverage limits are so important.

BOP-Pro Restaurant policies from UFG Insurance include higher limits and shorter waiting periods for business income coverage, giving you operating cash when you might need it most. These policies also include additional coverage for outdoor signage, helping customers to know you're still open for business.

When you're ready to secure the top restaurant insurance coverages you need, reach out to a UFG agent. We're here to help set your food service business up for sweet (or savory) success.