Pizzeria Insurance Policy Information
Pizzeria Insurance. 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.
Pizzeria insurance protects your pizza shop from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked pizza shop insurance questions:
- What Is Pizzeria Insurance?
- How Much Does Pizzeria Insurance Cost?
- Why Do Pizza Restaurants Need Insurance?
- What Type Of Insurance Do Pizzerias Need?
- What Does Pizzeria Insurance Cover & Pay For?
What Is Pizzeria Insurance?
Pizzeria insurance is a type of business insurance that covers the specific risks and liabilities associated with running a pizzeria or pizza restaurant.
This insurance typically includes coverage for property damage, food contamination, employee injuries, and liability for accidents on the premises. It may also include coverage for business interruption, theft, and other types of damage to the pizzeria's property or business operations.
The coverage and specific policy options can vary depending on the insurance provider and the type of pizzeria being insured.
How Much Does Pizzeria Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pizza shops ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Pizza Restaurants Need Insurance?
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 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, you can protect yourself from the serious financial losses that can occur when the unforeseen happens.
What Type Of Insurance Do Pizzerias Need?
A pizza shop should have at least the below listed different types of pizzeria insurance policies. Some of the most important policies include:
- Commercial General Liability - This is a broad business insurance policy that all 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.
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.
What Does Pizzeria Insurance Cover & Pay For?
Pizzerias, like any other business, can face various risks that may result in lawsuits. Some common reasons why pizzerias may be sued include:
Slip and fall accidents: Pizzerias typically have high foot traffic, and accidents such as slips, trips, or falls can occur, resulting in injuries to customers or employees. Insurance can provide coverage for medical expenses, legal fees, and potential settlements or judgments if the pizzeria is found liable for the accident.
Example: A customer slips on a wet floor in a pizzeria and suffers a broken arm. The customer files a lawsuit against the pizzeria for negligence. The pizzeria's general liability insurance can help cover the legal costs and potential settlement or judgment.
Foodborne illnesses: If customers experience food poisoning or other illnesses after consuming food from a pizzeria, they may file a lawsuit claiming the pizzeria's food was contaminated or improperly handled. Insurance can provide coverage for legal defense costs and potential damages.
Example: Several customers claim they got food poisoning from eating pizzas at a pizzeria. They file a lawsuit against the pizzeria for negligence in food handling. The pizzeria's product liability insurance can help cover the costs of defending against the lawsuit and any potential settlements or judgments.
Property damage: Accidents such as fires, floods, or other events can cause damage to the pizzeria's property, including the building, equipment, and inventory. Insurance can provide coverage for repairing or replacing damaged property.
Example: A fire breaks out in the kitchen of a pizzeria, causing extensive damage to the building and kitchen equipment. The pizzeria's property insurance can help cover the costs of repairing or replacing the damaged property.
Employee disputes: Pizzerias can face lawsuits from employees for various reasons, such as wrongful termination, discrimination, or harassment. Insurance can provide coverage for legal defense costs, settlements, or judgments if the pizzeria is found liable.
Example: An employee files a lawsuit against a pizzeria, alleging wrongful termination and discrimination. The pizzeria's employment practices liability insurance can help cover the costs of defending against the lawsuit and any potential settlements or judgments.
Auto accidents: Pizzerias often offer delivery services, which involve the use of vehicles for transporting pizzas. Accidents involving delivery vehicles can result in lawsuits for bodily injury or property damage. Insurance can provide coverage for damages, medical expenses, and legal defense costs.
Example: A delivery driver for a pizzeria gets into an accident while making a delivery, causing injuries to the other driver and damage to their vehicle. The other driver files a lawsuit against the pizzeria for damages. The pizzeria's commercial auto insurance can help cover the costs of damages, medical expenses, and legal defense.
In all these scenarios, having appropriate insurance coverage, such as general liability, product liability, property insurance, employment practices liability, and commercial auto insurance, can protect the pizzeria by providing financial assistance in paying for legal defense costs, settlements, or judgments, thereby mitigating the financial impact of lawsuits. However, it's important to review the specific terms, coverage limits, and exclusions of the insurance policies to understand the extent of protection provided. Consulting with an insurance professional can help a pizzeria owner determine the right insurance coverage for their business needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5812 Eating Places
- NAICS CODE: 722511 Full Service Restaurant, 722513 Limited-Service Restaurants
- Suggested Workers Compensation Code(s): 9082 Restaurant NOC, 9083 Restaurant: Fast Food
Description for 5812: Eating Placess
Division G: Retail Trade | Major Group 58: Eating And Drinking Places | Industry Group 581: Eating And Drinking Places
5812 Eating Places: Establishments primarily engaged in the retail sale of prepared food and drinks for on-premise or immediate consumption. Caterers and industrial and institutional food service establishments are also included in this industry.
- Automats (eating places)
- Box lunch stands
- Buffets (eating places)
- Carry-out restaurants
- Coffee shops
- Commissary restaurants
- Concession stands, prepared food (e.g., in airports and sports arenas)
- Contract feeding
- Dairy bars
- Diners (eating places)
- Dining rooms
- Dinner theaters
- Drive-in restaurants
- Fast food restaurants
- Food bars
- Food service, institutional
- Frozen custard stands
- Grills (eating places)
- Hamburger stands
- Hot dog (frankfurter) stands
- Ice cream stands
- Industrial feeding
- Lunch bars
- Lunch counters
- Oyster bars
- Pizza parlors
- Refreshment stands
- Restaurants, carry-out
- Restaurants, fast food
- Sandwich bars or shops
- Snack shops
- Soda fountains
- Soft drink stands
- Submarine sandwich shops
- Tea rooms
- Theaters, dinner
Pizzeria Insurance - The Bottom Line
To find out what type of insurance you should have for your pizzeria - and how much coverage you should have for each policy - contact a reputable insurance broker to discuss.
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
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
- Specialty Food And Restaurants
The food service industry is a vital part of the economy and plays a crucial role in providing food to individuals and businesses. However, it is also a high-risk industry that is prone to numerous potential liabilities and risks. That's why it's important for food service businesses to have insurance in place to protect themselves against financial losses and legal issues.
One of the main reasons the food service industry needs commercial insurance is to protect against liability claims. When running a food service business, there is a risk of someone getting sick or injured due to food poisoning or food allergies. Insurance can provide coverage for these types of claims, helping to cover the costs of legal fees and damages.
Another reason the food service industry needs insurance is to protect against property damage. This can include damage to the business's physical location, such as from a fire or natural disaster, or damage to equipment, such as kitchen appliances. Commercial insurance can help cover the costs of repairs or replacement, ensuring that the business can continue to operate smoothly.
Additionally, commercial insurance can provide coverage for losses due to unexpected events, such as theft or vandalism. This can be especially important for food service businesses, as food products and equipment can be expensive to replace.
The bar and liquor industry is highly susceptible to accidents and injuries. With the presence of alcohol, there is a higher risk of slip and fall accidents, fights, and other mishaps that could result in serious injuries to employees or patrons. Insurance can provide coverage for these types of incidents and help protect the business from financial liability.
In summary, business insurance is essential for the food service industry due to the numerous risks and liabilities that can arise. It can provide financial protection against potential losses and legal issues, helping businesses to operate safely and securely.
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.