7 Insurance Mistakes That Can Sink a Restaurant
Every restaurant review I do turns up “bombs”—gaps nobody explained, sloppy books, or
quote-driven choices that backfire at renewal, audit, or claim day. Here are the big seven—and how to defuse them.
No unified plan (business and personal disconnected) → one lawsuit can pierce the cracks either direction.
Over-insure annoyances, under-insure disasters (fryers vs. liquor/umbrella).
No long-term strategy (carrier history, limits, audits). Win with strong limits + 3–4 year stability + strategic re-shop.
“It won’t happen to us.” Fires, foodborne illness, A&B, liquor claims—bad luck doesn’t care.
Messy books = hidden costs (payroll/tips/subs/COIs). Sloppy books raise premiums and create audit shocks.
Price is treated as value. Cheap carriers can be brutal at claims and audits.
Not knowing enough to judge advice. You don’t need to be an expert—just informed enough to spot real guidance.
Quick win checklist (run it today): Do my business + personal connect? Am I insuring lawsuits/disasters? Is there a 3–4 year plan? Are limits strong? Are books/COIs clean? Do I know the difference between cheapest vs. best company?
