Is Your Deli Insurance Missing These 4 Critical Layers?
Think your small deli doesn’t need insurance? Think again! When it comes to insurance coverage, the size of the deli doesn’t matter. Slips and trips at these stores are highly expected. These kinds of accidents can cause liability claims. So, here is a quick deal: get your deli insured properly to keep it running smoothly.
This guide will help you get the right insurance policies and risks associated with your deli.
The 4 Cornerstones of Deli Insurance
Don’t let a wet floor or broken freezer sink your deli! For nearly every deli owner, these four policies form the foundation of the risk management plan:
General Liability (GL)
Your primary defense against third-party claims is general liability. According to a recent report of 2023, 75% of businesses are under-insured. Furthermore, more than 35% of small businesses don’t have general liability insurance. That means they are 100% at risk of getting sued if something happens. For a high-traffic deli, this is non-negotiable.
- Personal Liability Claims: A customer slips on a wet floor. Their medical bills will be your responsibility if they decide to sue.
- Reputational Harm: Claims of character assassination and backbiting.
- Product Liability: Crucially, this policy typically covers foodborne illness or food poisoning claims related to the products you sell.
Commercial Property Insurance
This policy protects the physical structure of your deli. Given the investment in specialized equipment and perishable goods, this coverage is vital. Here is a quick tip. Bundle your commercial property insurance with personal property coverage to get bundling discounts.
Commercial property insurance typically includes:
- Building and Contents: Covers damage to the physical store and its contents. Content coverage in these insurances generally includes counters, tables, and shelving from covered events like fire, theft, or vandalism.
- Equipment: Covers expensive items like ovens, commercial refrigerators, and your all-important meat slicers.
- Spoilage Coverage: An absolute must for delis. This add-on or rider covers your perishable inventory (meats, cheeses, produce) if it’s lost due to a covered power outage or a sudden breakdown of a refrigeration unit.
Insidious Data: Almost 1 quarter of small businesses don’t have personal property insurance in the U.S.
Workers’ Compensation
If your delicatessen business has employees, workers’ compensation is another must-have. It will protect you against:
- Employee Injuries: It covers medical bills and lost wages if an employee is injured on the job. For instance, a cut from the slicer, a burn from the grill, or a back strain from lifting inventory.
- Legal Costs: It also protects your business from lawsuits related to the employee’s injury.
Business Owner’s Policy (BOP)
BOP is a one-fit solution for small delis. In fact, it’s a smart and cost-effective way to get necessary coverage. The bundles your General Liability, Commercial Property, and Business Interruption insurance into a single policy. It will surely save money than buying each separately.
Insurance Add-ons to Ensure Maximum Protection
While the above four policies can handle most of the risk. There are some additional insurance policies you must consider for optimal coverage:
Commercial Auto Insurance:
The policy covers vehicles used for business purposes. Consider the vans your business is using for delivery purposes and catering transport. It’s crucial if you offer local delivery or catering services.
Equipment Breakdown Insurance:
It covers the cost of repair and replacement for equipment failures. However, you need to understand which hazards are covered. Ideally, it protects failures due to mechanical and electrical failures. To be more precise, it protects your perishable goods, equipment’s from:
- Power Surges
- Short Circuits
- Arcing
- Other internal electrical failures
Final Verdict:
Missing deli store insurance is like keeping your business unguarded. Reports show that 29% of deli and restaurant businesses have no business insurance. If you are one of them, it’s your call to get insurance now! Call Smart Apple today and get the right policy stress-free.