Pizzeria Insurance Michigan Policy Information
Pizzeria Insurance Michigan. There's nothing better than freshly made pizza. It's a crowd pleaser and one of the most popular takeout foods. You are passionate about the pizza you make and you love serving your specialty pies to your community. In addition to serving customers in your restaurant, you may also offer delivery services.
Pizzerias specialize in baking and serving pizzas. Other items may be included on the menu, such as sandwiches or a salad bar. They may have a buffet during lunch or dinner hours. Most offer pickup and delivery as well as table service. Some offer pizzas that the customer can pick up and bake at home.
Some have arcade games to entertain customers while waiting for food. Alcohol may be part of the operation but is often limited to beer and wine. Some pizzerias are located within a larger operation, such as a convenience store. There may be facilities for unique events such as birthdays.
In addition to providing your customers with fresh, tasty food, an inviting atmosphere, and prompt service, you also have other responsibilities. It's your job to make sure that your customers, your employees, and any vendors you work with are safe from hazards and unforeseen events. You can offer the best protection by carrying the right type of pizzeria insurance Michigan.
Pizzeria insurance Michigan protects your pizza shop from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Is Insurance Important For Pizzeria Owners?
While you go above and beyond to ensure that you are serving the best quality food and make every effort to protect the safety of your patrons and employees, there's no way to prevent the unforeseen. For example, a customer may slip and fall while dining in your establishment, or an employee may be involved in an accident while making a delivery.
As the owner of a MI pizza shop, you are responsible for ensuring the safety of your patrons and your employees. Therefore, you are liable for any damages that may occur, including the cost of medical care that may be needed and repairs for damaged property. Additionally, you are also responsible for any damages to your property, as well as the contents within your pizzeria.
With the right pizzeria insurance Michigan, you can protect yourself from the serious financial losses that can occur when the unforeseen happens.
What Type Of Insurance Should Pizza Shops Have?
A pizza shop should have at least the below listed different types of pizzeria insurance Michigan policies. Some of the most important policies include:
- Commercial General Liability - This is a broad business insurance policy that all MI pizzeria owners should carry. It protects you from the various risks that are associated with your pizzeria, including third-party accidents and injuries, legal claims made by third parties, and defective property. For example, if a customer claims that he suffered food poisoning after eating a pizza you served and files a lawsuit, general liability insurance will cover legal fees, as well as any damages that are awarded. Or, if a vendor trips over boxes in your restaurant while making a delivery of supplies, this insurance will pay for any medical care that is needed.
- Commercial Property Insurance - This type of insurance policy protects the physical structure of your business, as well as the contents. For instance, if a pizza oven catches on fire and damages your restaurant commercial property insurance will cover the cost of the damages.
- Business Interruption - Your livelihood depends on your pizzeria being open and accessible to the customers that you serve. If there is ever a reason to close down your restaurant for an extended period of time - for example, a pizza oven catches on fire and does extensive damage to your eatery - business interruption insurance will help to cover lost wages, including payroll for your employees.
- Commercial Auto - If you offer delivery, business auto insurance is a must. If you or an employee is in an accident while delivering food to a client, your standard auto insurance will not cover the cost of damages or injuries. For that, you would need business auto insurance. This type of policy will cover both bodily injuries and property damage that occur as a result of an auto accident.
- Workers Compensation - Depending on where your pizzeria is located, you are legally required to carry workers compensation insurance. However, even if this coverage isn't legally required, you should still consider carrying it. Workers' comp insurance offers protection for your employees if they are involved in a work-related accident or suffer a work-related illness. For instance, if an employee sustains a burn while preparing a pizza, this type of insurance will pay for medical care. It can also cover lost wages while the employee is unable to work, and can assist with legal fees, should the employee file a lawsuit against you.
Michigan Pizza Shop's Risks & Exposures
Premises liability exposures are high due to public access to the premises. If there is a buffet or salad bar, customers will move throughout the pizzeria with pizza and beverages, generating spills that can result in slips and falls. Spills must be cleaned up as they occur. Children can cause spills but also can burn themselves on hot food and beverages. Temperatures of hot beverages must be limited to reduce injuries due to scalding.
All employees must be instructed in proper customer handling, including how to deal with disgruntled or overly enthusiastic customers. Older patrons and those with mobility limitations are more prone to injury should a fall occur. Procedures should be in place to assist these customers in choosing and transporting food to their table. Lists of ingredients should be posted to prevent allergic reactions.
Food contamination is a concern as displayed food is accessible to all customers on a buffet or salad bar. Sneeze guards must be present, and the food should be monitored to ensure that foreign objects or substances have not been added. There should be a rotation process and a maximum time that food can be kept out. Floor covering must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked.
Sufficient exits must exist and be well marked, with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slips and falls. Outdoor security and lighting must be consistent with the area.
Products liability exposure is from food poisoning, contamination, and allergic reactions from food carried off premises for consumption. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure.
Liquor liability exposure is usually minor at a pizzeria due to a large amount of food and the family atmosphere. If beer and wine are served, any failure to comply with state and federal regulations can result in the loss of a liquor permit. All employees who serve liquor must be trained to recognize signs of intoxication. A procedure should be in place to deny service to underage or intoxicated patrons.
The popularity of pizzerias around college campuses can lead to underage drinking. There must be monitoring so customers purchasing alcoholic beverages do not then pass them to patrons who are underage or intoxicated.
Workers compensation exposures come from slips, falls, cuts, burns, puncture wounds, foreign objects in the eye, heavy and awkward lifting, and interaction with customers. Food handling can result in passing bacteria or viruses, resulting in illness. Flour dust can produce allergic reactions or respiratory problems such as asthma. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers.
Controls must be in place to maintain, check, and prevent such injury. Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals. As with all retail businesses, hold-ups are possible, so employees should be trained to respond in a prescribed manner. The employees tend to be minimum wage and turnover may be high. Company incentives to encourage long-term employment are positive signs of management control.
Delivery drivers are subject to both driving hazards and hold ups. Drivers should carry minimal amounts of cash. All delivery addresses should be confirmed before sending the driver. A procedure must be in place to check for the driver if he or she does not return within a reasonable amount of time.
Property exposures are from electrical wiring, cooking equipment, refrigeration units, and heating and air conditioning systems. All wiring should be current, up to code, and well maintained. Ammonia used in refrigeration units can explode. A system designed to detect leaks should be in place. Some pizzerias have only ovens and surface cooking while others may have grills or deep fat fryers. If the cooking exposure is limited to the ovens and non-grease-producing surface cooking, the fire exposure is viewed as a baking-only exposure.
If a conveyer belt cooking method is used for the pizza and sandwiches, cleanup is important to prevent buildup and potential fire from the grease and crust that is spilled. If there are grills or deep fat fryers, these must have automatic fire extinguishing protection, hoods, and filters. There should be fuel shut-offs and adequate hand-held fire extinguishers. The kitchen must be kept clean and grease free to prevent the spread of fire.
Filters should be changed regularly. Spoilage exposure is very high. Power outages of even moderate duration can render fresh and frozen goods to be condemned as unfit for consumption or sale. Business income with extended time period coverage should be purchased as clientele will switch after a major loss due to the lag time between the re-opening and the return to full operations.
Equipment breakdown exposures can be high as operations are dependent on refrigeration and cooking equipment which can break down or malfunction. All equipment must be regularly inspected and maintained as a lengthy breakdown could result in a severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty and money and securities. Criminal background checks should be conducted on any employee handling money. Many customers pay in cash. Money should be removed from the cash drawer at regular intervals and deposited in an on-premises safe or at the bank throughout the day to prevent substantial accumulations. There must be a separation of duties between employees handling deposits and disbursements and reconciling bank statements. If the restaurant sells cigarettes or provides alcohol, theft of stock could be a problem. Drivers of delivery vehicles could be robbed of stock or money. They should carry a minimum amount of cash.
Inland marine exposures include computers for tracking inventories and valuable papers and records for employee and supplier records.
Commercial auto exposures can be very high when delivery is provided due to the high turnover and youthful ages of employees. Guaranteed delivery times encourage reckless behavior and should not be permitted. All drivers must have appropriate licenses, acceptable MVRs, and should be drug tested. Company vehicles should be used for all deliveries. Maintenance should be documented. If employees use their own vehicles, the vehicles should be checked for maintenance and upkeep. Because most personal auto policies do not provide coverage when the vehicle is used for commercial purposes, requiring proof of insurance will be of little assistance.
Pizza Shop Insurance
To find out what type of insurance you should have for your MI pizzeria - and how much coverage you should have for each policy - contact a reputable insurance broker to discuss.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Food Service Insurance
Learn about restaurants, bars, liquor stores commercial insurance coverages. See how small business food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.
- Bagel Shop
- Beer Distributor
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
Bars, taverns, restaurants, cafeterias, and other eating and drinking places have significant insurance needs in three separate areas.
The first is property protection for physical damage to equipment, furnishings, building and supplies due to fire and other perils.
The second is premises liability coverage to protect customers due to slips, trips and falls on the premises, as well as for consumption of food products.
The final need is protection for employees due to frequent cuts, burns and other common employee injuries. Establishments that sell or serve liquor or other alcoholic beverages also need liquor liability coverage.
Slips and falls, along with customer illness due to being served tainted food or drink, are the primary liability exposures. The commercial general liability (CGL) is used to provide coverage for these exposures.
It is important to note that liquor liability coverage is excluded under the CGL form if a risk is in the business of serving alcoholic beverages. Many establishments in this category should therefore consider purchasing a separate liquor liability coverage form.
Restaurant kitchen equipment, inventory and dining room fixtures are common exposures for most eating and drinking places. Many of these establishments do not own the buildings they occupy but have long-term leases and have invested money in various improvements and betterments, including cooking equipment, dining room decorations and permanent fixtures.
There are major differences in the food service business and the very different exposures they present. There are many specific types of restaurants to cater to individual needs and tastes. There a several main commercial insurance classifications for food service.
Concessionaires: The most basic "eat on the run" type of restaurant is not classified as a restaurant at all but is referred to as a concessionaire. Class Code 11168: Concessionaires applies and the accompanying note states that all food and beverages must be sold through hawking or peddling. There can be no location to which customers walk up and purchase the food. This classification includes food sold at sporting events, exhibitions, and parks.
Caterers: Are very similar to restaurants with significant differences. The caterer prepares the meals at its own kitchen or commissary and then transports it to the locations where it will be served. Some final preparation may take place at the final location but the majority generally takes place at the caterer's location. The caterer's employees serve the meals and beverages and oversee the consumption of the food.
Restaurants: The way restaurants are categorized and classified uses the percentage of alcoholic beverage sales as the first criteria, followed by other features or operations.
Common to all of these categories is that entertainment-oriented venues such as nightclubs, cabarets, dance halls, discotheques, and comedy clubs must be separately classified and rated. This means that the sales that those entertainment activities generate must be broken out and rated separately from the sale or food and drink.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Spoilage, Equipment Breakdown, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonowned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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Also find MI local small businesses by General Liability Class Code and learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.