The most common cause of insurance claims within the New Jersey restaurant industry is not food related. It’s fire.

A major fire can be devastating to any business and even a minor fire can cause massive disruption: even if you could stay open will anyone want to dine out in a restaurant that smells of smoke?

Of course, in the real world, accidents will happen, and fire is an inevitable hazard in a restaurant. This is why every restaurant, no matter how small, should have commercial property insurance coverage.

But is your property insurance enough? When you’re taking out new insurance or checking the terms of extinguishing insurance policies, always play the “what-if” game: 

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• What if I have to close my restaurant because of a fire; am I insured for loss of earnings?
• What if someone is hurt in a fire in my restaurant; do I have liability insurance? 
• What if someone else’s property is damaged as a result of a fire in my restaurant—perhaps an abutting building, a customer’s car, or an employee’s personal belongings—am I covered?

As always, the details are in the fine print; just because you’ve taken out the big policies, don’t assume your restaurant has adequate insurance.  One of our insurance agents in Park Ridge, NJ can help your determine what you have.  

Increasing restaurant insurance coverage can become costly, but there are ways to lower your premiums. Every insurance company will reward you for taking precautionary steps in protecting your restaurant and your restaurant workers. If you can lower the risk of fire, you will almost certainly lower your premiums.

Thus, be sure to keep your kitchen and dining areas clean and tidy. Make sure the electrical and cooking equipment in your restaurant are well maintained. Don’t forget to keep your smoke alarms, sprinkler systems, and fire extinguishers serviced and up to date. And, above all, train your staff—having a fire extinguisher is great, but if no one knows where it is or how to use it, it won’t be of much help.

Fire is a hazard, sometimes an unavoidable hazard, for any restaurant, but lowering the risks is good practice and will lower your insurance costs.

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For more information on the best restaurant insurance coverage in New Jersey contact Vozza Agency.

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