Orlando, Fla.—Bars and Restaurants across Florida and all over the U.S., have responded to city and statewide coronavirus-related lockdown mandates by reducing hours, reducing staff, reducing the amount of patrons allowed inside their establishment, adding costly safety layers to their current operations, among many other measures. All of these efforts are being implemented in the pursuit of a single idea in mind: To keep the economy rolling.

However, business owners are wondering if this disaster would at some point be covered under their business insurance protection plans because as we know, there is no pandemic provision in any restaurant’s insurance coverage.

Experts from the food and beverage industry, coincide that your key focus must be placed on business interruption insurance.  This is the commercial insurance coverage that compensates your business for interruptions that force you to close your doors temporarily. Usually covered under this claim is fires, weather disasters and other unexpected phenomena. Pandemics are not usually listed in these insurance plans.

Other potential insurance solutions you might want to explore include:

• Crisis Management Coverage covers times of crisis that might include a violent act like a break-in or armed robbery, as well as a restaurant being shut down for food contamination or communicable disease.

• Contingent Business Interruption Insurance is a specific type of business interruption insurance that covers indirect loss caused by the inability of a supplier to perform his/her obligations with the insured business owner due to no fault of his own. A government lockdown of an entire city or state could be covered under this type of insurance.

• Civil Authority Coverage is when your business is interrupted by federal, state or city government mandate.

• Impossibility of Performance and Frustration of Purpose is, when a business cannot perform a contractual obligation through no fault of their own, that they could not have foreseen.

Some non-insurance related good practices shared by restaurant owners from all over the nation include:

1. Reassure you customers  —Communicate the actions you are taking in store and online. Reassure your guests that you are taking their safety very seriously.

1. Take even better care of the guests that come. Give them the best experience you can with extra special touches - this will help you drive more repeat business, but also reinforce good old word of mouth and online reviews.

1. Make more from each guest. People are likely to be eating or drinking out less often right now, so they may be more willing to spend more when they are. Take every opportunity to up-sell sides, bottles of wine and desserts!

1. Delivery & no contact collection. Offer to do no-contact drop off or curbside pick up. 

1. Gift cards or vouchers are your best friends. This will bring cash in the short term, and ensure that you will have guests in the restaurant in the future. 

1. Create low key dine-in events. Low key seated events, whenever appropriate, keeping numbers manageable and distance between the tables may provide a good reason to visit your bar or restaurant.

If you own —or may be considering to start a business in the states of Florida, Georgia or Texas, Garzor Insurance  offers you commercial insurance options that grow with your business. Get your business insurance quote today to compare the offerings from different insurance carriers, and save. Contact us for an initial consultation (321) 206-8035!

Commercial Lines CSR


View Yaralyn Diaz, CSR's Profile