BY THE NUMBERS
Restaurant Insurance Savings Opportunities You're Probably Missing

One recent trend among car insurance companies is to offer "good driver" discounts – lower coverage rates for people who are the safest on the road. Many companies that provide insurance for small businesses have similar systems for pricing their policies, whether they advertise them or not. So how can this benefit you? We dug through our application data to find out where food services business owners are missing opportunities to cut their insurance costs. Below are four key findings and tips for how you can apply our discoveries to lowering your bills.

What Insurance Type Do You Need?


Which Insurance Policies Do You Need? A Flowchart for Food Services Businesses

Not sure which insurance policies you'll need to protect your restaurant, bar, or catering business? Not to worry. Follow this flowchart to get an idea of where your exposures are and which insurance products can keep you protected. Note: every business's needs are different. This chart is only meant to give you a general idea of what businesses in your industry typically need. To find out which policies will keep your business secure, consult with an insureon agent.

93% of businesses could lose everything in a data breach.

93% of business owners are wide-open to data breaches.

75%
of data breaches at restaurants happen through point-of-sale system hacks.
53%
of small restaurant owners take credit cards.
7%
request data breach coverage when applying for insurance.

This suggests that restaurant owners don't realize how vulnerable they are to data breaches, which can cost tens of thousands of dollars to recover from. The good news? Fixing the problem is fairly straightforward: by implementing basic digital security measures, business owners can reduce their exposure to data breaches. And by adding data breach coverage to their General Liability or BOP Insurance, they can secure coverage for any breaches that occur.

55% of businesses could lower their Liquor Liability premiums.

55% to 60% of food services businesses are skipping opportunities to Lower Liquor Liability Insurance premiums

55%
of small businesses don't use an ID scanner when serving alcohol.
60%
don't have their staff complete any training in alcohol service beyond what's mandated by the state.

But both of these can reduce the cost of Liquor Liability Insurance because insurance providers like to see businesses that are proactively managing risks. Find out how you may be able to lower your insurance costs by talking to a food services insurance agent.

77% of businesses pay too much for Inland Marine.

77% of businesses are paying too much for Inland Marine Insurance.

77%
of businesses report that they don't lock or secure moveable property that's not in use.

Businesses that have to transport equipment from place to place (including food truck owners, concessionaires, and caterers) don't have the convenience of locking a single door at night and trusting that their equipment is safe. But securing moveable property (whether by installing an alarm system or keeping it in a secure garage) can decrease the likelihood of theft and may help manage Inland Marine Insurance costs.

53% of businesses need a cleaner.


53% of food services businesses are one piece of paper short of better Property coverage.

53%
of food services businesses are one piece of paper short of better Property coverage.


A cleaning contract, which 53% of applicants report not having, can make or break your ability to secure Property Insurance. Because of the heavy use kitchen equipment gets at food businesses, it needs regular, professional-grade cleaning. Deep fryers in particular must be cleaned regularly to minimize the likelihood of fires. Kitchen cleaning is such an important part of risk management that top-tier insurance companies won't write a policy at all unless the business has an active cleaning contract. To qualify for high-quality Property Insurance, make sure your gear enjoys regular cleanings. If you're not sure what criteria your cleaning contract has to meet, consult with your insurance agent.