One of the most important things to remember when starting a business, especially a business in the food and beverage industry, is to have the right amount of insurance. While that may seem like a no-brainer to some, it's always amazing how often people don't have all of their assets covered with - at the very least - a basic insurance plan. 

Here's just a brief overview of the many types of restaurant insurance available:

An insurance agent can talk to you about the type of risks your business could face and identify losses that your business may incur in virtually any situation. Some insurance agents also can offer pay-as-you-go options that help new businesses get the insurance they need without breaking the budget. 

One thing to remember is that you will want to have the appropriate amount of insurance to meet your needs. Unscrupulous agents may try to sell you insurance that you don't need, so be sure to speak up if you think you're being taken advantage of.

For instance, if you're starting a new restaurant and do not serve liquor, then you won't need any liquor liability insurance. That may seem like a no-brainer, but some people find themselves with liquor liability insurance when they purchase
an all-inclusive plan in an attempt to save money. Don't be afraid to buy individual plans to meet your needs. 

Another thing to consider when opening a restaurant is the climate. If you're opening a restaurant in northern Michigan, then you'll definitely want to have some kind of insurance to protect your assets should the pipes burst during a hard freeze. The same can be said for those opening a restaurant in south Florida, only in that instance, insurance would need to protect the business from tropical storms, hurricanes, and the like. 

The biggest lesson to learn here is that insurance agents can tell you about the products that you may need and will let you decide if you want to purchase them or not. That's not to say that you can pick and choose all of your insurance coverage; after all, many forms of insurance are required by local, state, and federal laws for various types of businesses, and the restaurant industry is no exception. 

It's always better to be safe than sorry when it comes to owning and operating a business. Just one uncovered act of nature can be so costly that your restaurant doors will close for good. 

Dana Rasmussen Dana Rasmussen writes about various forms of insurance for new businesses. When she's not busy writing, she owns a small business that is heavily insured. 

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Business owners know the value of workers' compensation in worker injury cases. This form of coverage provides workers with much-needed medical care and financial remuneration while helping employers avoid messy, protracted civil suits. 

But according to an August 15, 2014 article in Business Insurance, businesses throughout Florida may soon find themselves providing more benefits for their workers -- and presumably paying more as well. Judge Jorge E. Cuerto of Miami-Dade County's 11th Circuit Court has ruled the Florida Workers' Compensation Act unconstitutional in its current form and range of benefits.

The central issue in this case hinges on the law's provision that employees accept workers compensation as their "exclusive remedy" for recouping wages lost to a work-related injury. Padgett has contended that once she had run through all her workers' compensation benefits, she was denied any means of pursuing further compensation through the courts. 

This protection from tort action is a central aspect of the Florida law as a means of trading quick, simple compensation for lengthy, expensive courtroom battles. Cuerto contends that this very exclusivity ties employees to inadequate benefits, violating their Constitutional rights in the process.

How did this sudden, dramatic pronouncement come about? The workers' compensation law currently on the books is nearly 80 years old. During its first several decades, it required business to pay all injured employees' medical bills alongside other generous benefits. 

Unfortunately, it also required those businesses to pay some of the highest premiums in the nation, making it more difficult for Florida companies to thrive. According to an August 13, 2014 article in the Miami Herald, the "exclusive remedy" provision entered the law in 1968, while additional changes in the years to come reduced the extent to employee benefits. Since the last major amendment to the law in 2003, premium rates have dropped by a remarkable 56 percent. Meanwhile, workers have felt increasingly under-served by the reduced range of benefits provided. This most recent ruling, which shocked even those who agree with it, represents a long-simmering issue finally coming to a boil.

What does this ruling mean for Florida businesses going forward? That depends in part on whether it actually stands. In an August 19th, 2014 article for Insurance Journal, Michael Adams reports that area attorneys expect to see the ruling appealed to the Florida Supreme Court. But a reversal of the ruling does not necessarily guarantee a return to business as usual. The Supreme Court would hear this case hot on the heels of several other such cases. 

One notable example concerns the 2009 case of a firefighter who found himself unable to seek financial redress after his 104 days of temporary disability benefits under workers compensation came to an end. The more frequently these issues find their way to the Supreme Court, the more receptive the Court might become to workers' compensation reform. If that happens, premiums will be on the rise once again. 

The smartest move for business owners is to make absolutely sure they're getting the best discounts and lowest premium rates possible under any permutation of workers' compensation law. A&A Underwriters can evaluate your current coverage to see whether your current underwriting makes sense for your particular needs. Now more than ever, it pays to have a business insurance expert on your side!

William Reynolds has worked as a freelance copywriter since 1997. William has written on a wide range of subjects, including commercial and personal insurance.

(Images courtesy of imagerymajestic and suphakit73 /FreeDigitalPhotos.net)


http://www.businessinsurance.com/article/20140815/NEWS08/140819897?tags=|59|338|329|75|84|304|92#
http://www.miamiherald.com/2014/08/13/4288124/injured-employees-cheated-by.html
http://www.insurancejournal.com/news/southeast/2014/08/19/338088.htm

Whether your Florida business runs on tow trucks, rental cars, delivery cars or other vehicles, commercial auto insurance is a must if you want to survive and thrive for years to come. By covering your fleet with the appropriate kinds and levels of insurance, you can protect against the very real danger of lawsuits from injured parties or damage resulting from accidents. Let's take a closer look at how commercial auto insurance works -- and why it's just as critical for your business as workers compensation insurance, flood insurance, and other essential forms of business insurance in Florida.

Why should you buy commercial auto insurance for your vehicles? For one thing, state law mandates that you can't register a commercial vehicle unless it meets certain coverage minimums. Florida is a no fault state, meaning that insurance covers a sizable chunk of the damages that might otherwise end up in small claims court. It also means that you are required to maintain at least $10,000 worth of Personal Injury Protection, or PIP, and a minimum of $10,000 in damage liability coverage per vehicle.

But even with these stipulations, some business owners allow their commercial auto policies to lapse as a money-saving measure -- and that's a huge mistake. By eliminating that protection against civil damages and your ability to get compensated for damage to your fleet, you leave yourself wide open for financial disaster. A single uncovered incident might suffice to torpedo your enterprise once and for all. As long as you own, lease, rent, or operate company vehicles, you need to maintain your commercial auto coverage at all cost!

In addition to the required PIP and damage liability protection, you should give serious thought to these types of commercial vehicle coverage:

Medical payments for drivers - This coverage provides for ambulance, medical and funeral bills in the event that one of your drivers suffers injury or death in an accident. DMG.org notes that in many cases, medical payments coverage works hand-in-hand with your workers compensation coverage to provide optimal benefits to your workforce.

Comprehensive - Not every form of damage of vehicles occurs due to incidents involving other drivers. Natural disasters, vandalism, or unfortunate encounters with animals in the road can all damage or destroy your fleet. Comprehensive coverage provides an extra level of protection against these unpreventable events.

Uninsured or underinsured motorist - What do you do if the driver who hits you only has half the coverage necessary to provide for your repairs or other expenses -- or no coverage at all? When you have uninsured/underinsured motorist coverage, you don't have to worry about it. Your policy will pay the difference between what the motorist's policy can provide and what you actually need to get that vehicle back on the road again.

Commercial auto insurance has many similarities to other basic types of insurance, including the issue of premiums versus deductibles. You can expect to pay higher premiums in exchange for lower deductible amounts, and vice versa. While your business's budget may pose some constraints over what level of premium you can reliably maintain, think about how much you can afford to pay out of pocket for an accident or disaster -- and choose a deductible that won't break the company coffers when trouble strikes.

Purchasing commercial auto insurance for your Florida business just makes good sense. After all, you worked hard to reach your current level of success -- why not take the necessary steps to stay there? 

William Reynolds has worked as a freelance copywriter since 1997. William specializes in website content, ghost-blogging, print marketing content and audio/video scripts.

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If you own a Florida business and you haven't invested in commercial flood insurance to protect it, you're asking for trouble. April 2104 saw the worst local flooding in a generation, according to NBC News, with more than 2 feet of rain falling on Pensacola in scarcely more than a day. But that deluge may only signal worse to come, because August and September represent the peak activity for tropical storms, hurricanes and flooding in Florida. Now is the time to take out that policy and give yourself some much-needed peace of mind before the waters rise again. 

Why is Florida so prone to flooding? Its position between two enormous bodies of the water -- namely, the Gulf of Mexico and the Atlantic Ocean -- makes it vulnerable to tropical storms on both sides. Hurricanes not only beat against the coast and run roughshod over cities, but they also cause the state's many rivers and wells to overrun. Heavy rainfall can create floods that buffet local homes and businesses at any time of year, making flood insurance an essential form of protection for anyone who owns either kind of property. During the summer, however, the risk of flooding becomes even greater, and it continues to be a special concern until hurricane season finally blows over in November.

While every Florida business owner needs commercial flood insurance, some need it more urgently than others due to their specific location. The state views its topography in terms of five different flood zones. Zones B, C and X are considered low-to-moderate risk areas, while zones A and V are considered high-risk areas, according to Floodsmart.gov. Your insurance agent can identify which zone your property sits on and what level of risk it faces. This in turn will affect your premium rates. If you're in Zone B, C or X, you can obtain a Preferred Risk Policy that covers either your building and contents or the contents alone. According to Floodsmart's 2013 numbers, an annual "contents-only" policy in a low-to-moderate risk zone can cost as little as $185, while a building and contents" policy can start at $643. (You'll pay more if your facility has a basement or other below-ground levels.) 

These premiums get you $50,000 coverage for each type of coverage you purchase -- for instance, $50,000 on the building and $50,000 for its contents. If you're in a high-risk zone, you'll have to purchase a Standard Rated Policy. This requires you to buy separate plans to cover your building and contents.

What is the cost of not purchasing commercial flood insurance? Apart from the incalculable degree of disruption to your business, you'll most likely have to turn to FEMA for a disaster relief loan. These loans cost business owners considerably more than that flood insurance policy would have, because they're expected to repay the entire loan amount plus interest. Additionally, the process of applying for disaster relief in the immediate of a natural disaster is a chaotic one to say the least. Purchasing flood insurance allows you to take a proactive stance as opposed to a reactive one so you can protect your property in the most orderly and cost-effective manner possible.

Don't let a Florida flood sink your business. Take the simple step of consulting your insurance agent about commercial flood insurance. When those storms come, you'll be glad you did!

William Reynolds writes website content, print marketing content and audio/video scripts on a wide range of topics, including commercial insurance tips and issues.

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Worker's compensation isn't just a good idea that protects both you and your business, but to a lot of people, it's annoying with forms they want to fill out and bill they don't want to pay. It's not like the state's going to notice your business doesn't have one type of insurance, right?

"Wrong," Pablo Conde, a forty-year veteran of the insurance industry tells us when we asked him exactly that question. "Businesses that go without get caught." Here's what Conde explained to us, and what to do if you get caught.

While how worker's compensation is enforced varies widely from state to state, Conde told us the one consistent factor is that you will get caught and you'll have to pay. "How far back the audit will go depends on the state. In Florida, it used to be three years and they recently changed it to one and a half," Conde explained, but no matter what, "you're going to have to pay for that insurance and also pay any penalties."

And no matter what you've heard, your coverage doesn't automatically apply across all businesses. Conde laid it out for us: "There's some incidences that I've seen where somebody will have a few companies, and one will not have the right coverage. The state sends a stop work order, and somehow the policy shakes out so that all the companies are covered." But as Conde notes, that's extremely rare and it's not necessarily something you should count on. And if you were hoping that an insurance company would give you retroactive coverage, Conde's rather concise: "That's not going to happen," he tells us with a laugh.

If you're caught, the first step is to get into compliance, Conde informs us: "Getting back to work is the most important step." Conde recommends calling an insurer and being honest about your situation: "Look for somebody who understand your industry, who uses industry terms and has an idea of what you do." Be clear about your situation and be ready for a little bit of sticker shock. As Conde notes, not being properly covered in the first place marks you as more of a risk than someone who takes the time to make sure they're in compliance. Just remember that you can get insurance no matter what. "You may pay more," Conde points out, "but you can get covered. Usually what happens is they may not offer you their best terms, but you're still going to get the coverage."

However, the best way to not get caught in the first place is to not have something to be caught for. Conde says it's quite simple: "Pay now or pay later." Remember, worker's compensation isn't just about filling out paperwork and an expense line item: It's about protecting your business from liability and ensuring your workers have the coverage they need in case they're injured. So don't put it off; get the coverage you need today.

Workers' compensation is just one of a long line of tasks on many business to-do lists. Unfortunately, unlike getting caught up on the filing or changing your address on a website, the longer you let your workers' comp obligations sit, the more money you're going to owe. So what should you do when all of a sudden, the bill comes due? We asked Pablo Conde, an expert with nearly four decades of insurance experience, what you should do.

Conde's first point? You'll probably know when you're about to see a massive bill in the mail. Audits rarely strike out of nowhere, as Conde told us. "Most of the time, they're auditing you because they think there's a problem, or they think that you're not in compliance; somebody's made a claim against you or they've gone through the paperwork and can't find your policy." In short, you haven't paid the bill, and somebody's finally noticed.

It varies from state to state how and when the policies are enforced, but sooner or later, if you try to get by unnoticed, you're going to appear on someone's radar, and it is going to cost you. As Conde noted, it's one of the few things you can count on when it comes to workers' compensation coverage: "If you've got four employees and they're not covered, you're going to have to pay for that insurance and also pay any penalties."

So when you open the envelope and see the total, what's the first thing you should do? According to Conde, call an insurer, and fast, as you'll likely also find a stop work order in that envelope as well: "Depending on your circumstances, you can get WC in a matter of minutes, or it may take a day or two. You want to start that as quickly as you can so you can get back to work."

But there is a limit to what an insurer can do for you; don't expect any sort of retroactive coverage, despite what you may hear or what an agent might promise you. "Nobody's going to backdate your policy for years," Conde explained. "Unfortunately, we have some agents that don't give out clear and precise information, and some people don't understand what they're saying. We deal with those issues on a daily basis."

Once you're covered, you can have the stop work order lifted and get your business back on track. But what do you need to do to prevent this in the future?

"If you're audited once, you're more likely to be audited again," Conde tells us. Especially in states dealing with compliance issues, they're more likely to act and act quickly against businesses they feel are shirking their responsibility, and the more infractions you collect, the harder it will be to get insured. According to Conde, it's simple: "Insurance is always about the risk, so the more violations are on the books, the bigger a risk you're going to be and the more it's going to cost you." Getting worker's compensation now can save you substantially later.

Pablo Conde, an insurance expert with 36 years of experience under his belt, paints what might appear to be a bleak picture for saving money on workers' compensation coverage. "There are two states that control everything, the rates, the policies, all of it. There are a few, like Florida, where the state dictates the rate. There are others where businesses can set the rate on a scale depending on the amount of risk," Conde explains to us. It doesn't sound like you can reduce your bill. But Conde himself tells us that you can save, even if you're in a state that dictates every step of the process.

It all starts, Conde tells us, with the agent. "You want an agent that knows the state, knows the rules, and can get you a good policy," he clarifies, and makes an important point. Many businesses aren't familiar with the worker's compensation laws of their state, beyond knowing that the coverage is required, so a good agent "...will be able to explain the laws and how they apply to you." If they can't do that, Conde tells us, that's a red flag and you should find another agent.

But if the state locks in the rates ... how can even the best agent save you money? The short answer is that the rate on the page isn't the rate your business can get.

Businesses need to remember why the state is locking in rates in the first place, Conde tells us. "States want you to have workers' compensation coverage, because it's good for your business and your employees." So, Conde points out, "they've got laws in place that make it cheaper for businesses that understand that." 

One example he explains to us is a customer who gets a stunning deal on his Florida workers' compensation insurance. "For example, one of my clients is paying 49% of the state rate; he's been in business for a number of years and hasn't seen any claims, and that lowers his rates. So it's not everyone is paying the same rate, even if the state regulates what you pay." We asked if he saw a claim whether that would raise his rates, and Conde conceded that it was a possibility but that "the better your record, the more the state is willing to work with you."

Above all, Conde notes, you need the right agent. "In the insurance industry there's a term, where somebody is called a "rate-picker." He'll just fill out the form and go on a fishing expedition hoping he gets a quote. An agent will ask you questions about your business and look for a policy that fulfills your business." Conde says to look for the agent who uses industry terms, and if a good agent isn't familiar with what you need, he'll refer you directly to somebody that he or she thinks will get you what you need. And with the right agent, you'll see the best savings.

Workers' compensation can cost you quite a bit of money, or so the conventional wisdom goes. But according to Pablo Conde, an expert in the industry with 36 years of experience, spoke with us and made it clear that you can save both short and long-term if you're smart with your planning and your business.

It all starts with where you're starting your business. "When you're buying insurance, any insurance, you need to know the risks of your location. You have to consider the risk of where you're buying a business because it's going to be a factor over time," Conde explains. Start by getting a sense of the risk of where you plan to work and what coverage you'll need. From there, you can look for an agent.

Agents are the next, and important, step, as Conde tells us. "Look for somebody who understands your industry, who uses industry terms and has an idea of what you do. That's the agent that will put together the right policy for you." A good agent will be able to talk knowledgeably about your industry and your business, and if they're not the right fit, they'll probably know an agent who can help you. 

Finally, Conde notes you need to understand how business insurance such as worker's comp works, and that an agent can help: "What state you're in is very important. Each state is different, and a good agent can find you savings even if the rates are fixed."

All that can help in the short term. But what about the long term?

Cutting down on worker's compensation, not to mention other business insurance, depends on everything, even your business's construction. "Upgrades are important," Conde says. "Is your wiring up to code, is your construction up to code, do you have a good alarm system? Is your business built with fire resistant brick? Even if you're just a tenant in a building, that's still going to matter." Limiting the possibility of injury reduces claims.

Also, just like you build your credit over time, even the strictest states will offer you a break. Conde points out a client he has that pays less than half Florida's rate because "he's been in business for a number of years and hasn't seen any claims. So it's not everyone is paying the same rate, even if the state regulates what you pay. How you manage your business and your employees is very important."

Finally, for smaller businesses, a package deal might make sense. "If you're a small business making under two million a year, ask for Business Operation Insurance," Conde explains. "It's a standard collection of coverages that companies put together to save money, and it's less expensive than standard commercial insurance. Small business can save a lot of money on their insurance, and you can add specific coverages beyond that to make sure you're in compliance."

In short, the best way to save is to think in terms of limiting risk and packaging insurances. It'll be the difference between being in compliance, and not having the coverage you need.

As a business owner, you might have heard about umbrella insurance but have never understood much about it or if your business needs it. The bottom line is this: Umbrella insurance is an additional cost, but it's well worth it.

Your business is (hopefully) already insured by commercial general liability insurance. A commercial general liability insurance policy covers your business (and, probably, you personally) in the event that some act of negligence from your business operation causes someone physical or financial damage. If the injured party decides to file a lawsuit (likely, in this day and age), and prevails, your insurance policy will pay for the damages. You policy should also cover the attorney fees associated with the lawsuit.

A commercial general liability insurance policy is a means for you, as an entrepreneur, to transfer risk from your business to the insurance company. This risk transfer incurs a cost, but since litigation seems to be a default reaction for so many injured parties today, the cost is well worth it.

Without commercial general liability insurance, you're assuming all of the risk on behalf of your business. If your business is successfully sued, then you'll have to find a way to pay the damages awarded to the plaintiff.

Umbrella insurance is an extension of the liability coverage provided by your commercial general liability insurance policy.

It's likely that your commercial general liability insurance policy has a hard stop at $1 million of coverage. This means that you can expect your policy to pay out damages and attorney fees in an amount not exceeding $1 million.

However, some lawsuits end up costing more than $1 million. Therefore, you are still assuming a great deal of risk if you only have a commercial general liability insurance policy.

If your business is successfully sued for $1.5 million, for example, and you only have commercial general liability insurance, then your business will have to scrape together the extra half a million dollars in damages awarded to the plaintiff.

However, if you have an umbrella policy, then that insurance coverage would be responsible for the additional $500,000 in damages. 

Since this is an era when it's not uncommon to hear about companies getting sued for millions because patrons spilled hot coffee on their laps, it's a good idea to protect your business as much as possible against the threat of lawsuits.

That's why umbrella insurance is so important.

If you're thinking about becoming a restaurateur, then you should know that you're going to need insurance. There are simply too many risks associated with operating a business to avoid quality insurance coverage.

The question then becomes: How much does restaurant insurance cost? You'll want to know that ahead of time so that you can produce an accurate budget.

The answer to that question is the all-too-familiar: It depends.

What does it depend on? Here are a number of considerations.

You're going to want property insurance, obviously. The cost of property insurance is dependent on where you restaurant is physically located.

Property insurance will cover damage caused by a storm. If your restaurant is located in an area where there are a lot of storms, you can expect to pay a higher premium than the owner of a restaurant located in northern Montana, where there aren't a lot of storms.

Also, if your business is in an area with a high crime rate, you can expect to see a higher premium as well. This is because property insurance also covers loss due to theft.

Finally, do you own or rent the building where your restaurant is located? If you're ensuring the real estate assets in addition to the equipment and furniture, then you can expect a higher premium than the owner of a restaurant in a rented location.

Does your restaurant serve liquor? If so, then you're going to need liquor liability insurance to cover your business in the event that someone consumes alcohol at your establishment, gets behind the wheel of a car, and causes an accident.

Obviously, that's an additional cost to you that's not going to be seen by owners of restaurants that don't serve alcohol.

The number of people that you have working at your restaurant will affect your workers compensation premium. Basically, the more people that you have working there, the higher the premium because there are more people to cover and it's more likely that one of them will get hurt on the job.

How long you've been in business matters. If you're just opening a new restaurant, then you can expect to pay more in insurance rates than Gordon Ramsay or Bobby Flay. Those celebrity chefs have a proven track record of restaurant management.

After considering all of the factors, it's best to estimate a range from $5,000 to $7,500 for your insurance premiums.

Remember, though, that is just a ballpark range. The best thing for you to do is to talk to a qualified broker about your plans for a restaurant and let the broker give you more detailed information about the various types of insurance that you'll need and how much they cost.

Remember also to ask your broker about a business owner's policy. That's a combination of insurance offerings in one package with the added benefit of a discount.

Owning and operating a restaurant is certainly an exciting and challenging opportunity. Make sure that your business is properly covered with quality insurance. Also, make sure you've budgeted for that insurance.