On July 2016, I received a phone call from a prospect client who was in the process of opening a new restaurant in Naples, Florida. According to him the business would be open to the customers on October 2016 as soon as some repairs have been completed and the county has delivered the certify of occupancy.
On this scenario following are the tips that I provided to the business owner:
1. You are responsible for potential bodily injury and property damage during the process of suiting the space for the restaurant. Also, for potential damages to the space rented to you. Therefore, I advised him to review the lease contract and verify the insurance requirements from the landlord. At this point, the business owner should buy General Liability Insurance.
2. If you as the owner of the restaurant is paying and hired the General Contractor and the sub-contractors to suit the space should request liability and Worker Compensation to the third parties involved in the construction project. If the landlord is paying for the construction then the business owner should request proof of insurance to him. Transferring the risk to others is a key component of the risk management plan.
3. As soon as the business owner hires the employees and before they begin the training is necessary to buy a Worker Compensation insurance to protect against potential accidents or illness related with the job. I advised him that running a business without the worker compensation insurance is high risky; furthermore, it will be difficult to find a carrier that would write the policy since the business has not had WC from the beginning.
4. Finally, I advised the prospective business owner about the protection of his income and the assets with a Commercial Property Insurance. It includes the contents, income protection if he would be unable to open the business, equipment breakdown, spoiled food and auto insurance including non-owned vehicles.