What is Pizzeria Insurance?
Everyone loves pizza, right? Pizza is big business. There is at least five pizza restaurants within 10 miles of our office, maybe even closer than that. Yet, every one of them is successful and has the loyal patrons that frequent the restaurant often. Pizzerias are multi-faceted establishments. They are part food-delivery services, some are also restaurants, some are strictly fast food with a few tables, and some also offer catering. Being so diverse, they are exposed to a number of potential risks. Insurance policies created for pizzerias will help protect them from many of these risks. Without protection, one lawsuit resulting from a food-related illness or a delivery-related accident can permanently shut down a small, independent pizzeria.
As the owner or manager, it is imperative that you maintain insurance for your pizzeria so it is properly protected with the right policy. There is where we come in! Our agency offers the best coverage with the best rates. There is a lot to think about when deciding on coverage. Questions to ask yourself are: What's the minimum I need? How much does it cover? Do I need every type of insurance that the insurance company sells?
What Type of Incidents Do You Need Protection For?
The coverages that a pizzeria policy offers depends on the policy's terms and conditions. With the right protections in place, pizzeria insurance might protect a pizza place in incidents such as:
- A pizza burns and starts a fire, partially or completely destroying the business
- A severe thunderstorm causes a power outage, and all of the food spoils during the outage
- A driver making deliveries is in an accident
- A power storm ruins the shop's electrical system
What Factors Will Affect Your Premium?
Insurers take many factors into account when determining premiums for pizzeria policies. A few considerations that will affect the price include:
- Size of the pizza shop
- Location of the pizza shop
- The size of the area where you will be delivering pizza
- The specific coverages and limits that are selected
- History of claims filed
Which Policies are Available?
Many pizzeria insurance policies are prepackaged policies that offer a combination of coverages. The Business Owners Policy is the most commonly used and can be modified to fit your business needs. However, no one policy will cover everything. You may need to purchase several different policies. For example, you will need to purchase a separate policy for Workers' Compensation.
Business Owners Policy
A Business Owners Policy (BOP) is a prepackaged policy. There is only one policy to review. It can be more cost-effective than purchasing separate policies. You can purchase additional coverage in form of endorsements or riders to the policy. Not everybody though is eligible for a BOP. Generally, smaller pizza shops are candidates. The basic parts of the BOP policy are:
- Property Insurance for buildings and contents owned by the company.
- Liability Protection: covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.
- Business Interruption Service: Covers the loss of income resulting from fire or other catastrophes that disrupts the operation of the business. It might also include the extra expense of operating out of a temporary location.
Commercial Package Policy
For large pizza shops which are restaurants, the BOP might not be suitable or the shop might not even be a candidate. The Commercial Package Policy (CPP) would be more suitable for these businesses. Most CPPs include property insurance and general liability insurance. General liability will protect you if anyone is injured on your property.
This is not part of any package policy and must be purchased separately. This policy is not optional in NY and must be purchased by all businesses who have employees. This policy covers the costs of medical care and rehabilitation for workers injured on the job. It also compensates them for lost wages and provides death benefits for their dependents if they are killed in work-related accidents.
Do you deliver pizza?
Delivery coverage is needed by pizzerias that deliver or cater food. There are two different kinds of pizza delivery coverage available: owned vehicle and non-owned vehicle coverage.
Owned vehicle coverage is used when a pizzeria owns the vehicle that is used for deliveries or catering. Non-owned vehicle coverage is typically bought when a pizza place has employees that make deliveries using their own car. This coverage is common for pizzerias that offer deliveries but don't have company vehicles.
Optional Coverages to Consider
Employment Practices Liability Insurance: Covers companies against claims or lawsuits filed by employees, former employees and employment candidates regarding their employment relationship with your pizza shop. These can be claims related to sexual harassment, unfair termination, wage disputes or discrimination.
Umbrella Protection: This covers anything that happens above and beyond what other coverage might not cover. You can usually purchase increments of $1 million in coverage at a time.
Cyber Liability: This coverage protects a pizzeria against credit card and social security theft.
Key Person Insurance: Many businesses depend on a single person or a few key people for their success. If a key person becomes unable to work or dies, the business might temporarily be unable to operate, which results in lost revenue. With this insurance, the pizzeria can continue to pay the bills while searching for a replacement.
The price to insure your pizzeria can be costly, but when you consider the alternative of losing your entire business due to one accident, the peace of mind that you bought the right insurance from Pepe Insurance Agency is well worth the cost.
Three ways to get in touch with us to discuss insuring your pizzeria today!
Written by Bill Pepe