- Hawaii Insurance
- Hawaii Insurance
Restaurant & Hospitality Insurance in Honolulu, HI
A restaurant is a business that presents numerous and unique risks for insurance. While most businesses would be afraid to have a fire in their premises, a restaurant counts on having flames to heat and cook their clientele's food. A sit-down restaurant, fast food establishment, or caterer all face exposure to property and liability loss.
Restaurant fires are common. Obviously most fires occur in the kitchen. Often a fire starts above the grill top in the exhaust ductwork and above the mandated fire suppression system. It's important that those ducts are cleaned by a reputable contractor routinely and as often as needed. When a business owner decides on the amount of property insurance they need the critical considerations are today's cost of equipment and furnishings, today's code improvements, cost of architectural drawings and permitting, demolition costs, and general contractor costs. Think of the property limit of insurance as a bucket of money; it's a horrible thing to run out of insurance before the remodel is complete.
In contemplating the aftermath of a fire to a restaurant an owner needs to calculate the requirements of their lease, debt service, and continuing operational expenses/cost to keep key employees. Too often business owners underestimate the length of time it will take to rebuild and reopen a restaurant after a total loss of their premises. Business income with extra expense is meant to replace gross profit less the variable costs of goods sold.
Restaurant workers have slip and fall exposure for their front and back of the house employees, exposure to sharps and heat, and everyone is on their feet all day. It's easy to see why restaurant workers suffer workers' compensation claims. That's where the employee gets injured on the job in the course of their work and the statutes and rules of the department of labor take over to regulate how the injury is treated, how much is due to the medical providers and how much of the worker's lost wages will be paid by the insurance provider.
A restaurant that serves alcohol has more demands for insurance, as someone who is over-served by the bartender or wait staff can cause tremendous liability for the restaurant owner. Liability of the intoxicated driver extends back to the restaurant or bar that served that patron and could result in a judgement against the restaurant for millions of dollars. The more profitable and well-known a restaurant means there is more to protect. A restaurant that does $1M in revenue needn't buy the same limits of coverage as a restaurant that does $30M annually.
Food poisoning is in the news with national chains closing down for intense cleanings. A restaurant insurance program that is thoroughly constructed can mitigate the financial downside of having a restaurant closed by the local health board. Also the costs of the sickened diners will be addressed with a liability endorsement that covers "away from the premises" liability claims.
If you work in the hospitality industry, you're aware of the importance of putting customers first. At Thornton & Associates, we take a similar approach in helping our valued clients secure the insurance that will best serve their needs. If you're in the market for hospitality insurance in Honolulu, HI, come to us for further information about the products we have to offer.
The Coverage You Need
Whether you own a restaurant, a hotel, or a recreational facility, you can benefit from a comprehensive insurance plan. When you come to Thornton & Associates, a dedicated insurance professional will walk you through your options and help you select the right coverage. We'll take the time to explain what our various packages entail so that you come away confident in your choice. Our goal is to offer you not only protection, but peace of mind.
Call now to learn more about our hospitality insurance policies.
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