Do I Need Business Owner’s Policy Insurance If I Prepare Food in a Home Kitchen?

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Many a restaurant has been started, or has benefited after its initial period, from dishes cooked in a home kitchen. Whether you’re literally offering Mom’s home-cooked recipes to your clientele or whipping up special holiday desserts for your restaurant that only your family used to enjoy, you might be preparing food in a home kitchen and transporting it to your restaurant.

Do you need business owner’s policy insurance, or does your home insurance policy suffice?

You definitely need business owner’s policy insurance.

You may think of your home kitchen as completely safe. But frankly, no one’s kitchen is ever completely safe. Can you guarantee that a fire would never break out, for example? No knives ever accidentally slip out of someone’s hands and cause injury? No tornado or flood ever hit your home kitchen, if your house is in a tornado- or flood-prone area? No one can guarantee their home kitchens would always be completely free of these kinds of events.

In addition, the transport and restaurant-based serving of the food need to be insured.

  1. Covering Your Home Kitchen

If your home kitchen is the site of restaurant food preparation, it’s a good idea to make sure your home kitchen is covered by business owner’s policy insurance.

Food preparation for your restaurant means that your home kitchen is now a business site, at least some of the time. You need liability insurance to protect yourself and your business. What if the person hired to transport the food slips on your kitchen floor? You could be responsible for damages as a result of any injuries. What if a lightning storm hits your kitchen? Insurance allows you to file a claim for replacement of any damaged equipment or space.

Many homeowner’s policies will not cover a business. You need to make sure your business is covered by the appropriate insurance.

  1. Covering Transport and Serving

The process of transporting the food to your restaurant and serving it there also needs to be covered. The transportation process itself could conceivably cause damage or harm to a person or other entity, unrelated to the vehicle used.

Might the food spoil in a hot van caught in a traffic jam, for instance? Might your shelving or other transport-related property be damaged? You need liability insurance at a minimum, and exploring commercial property insurance and business interruption insurance is a good idea as well.

Business insurance is a must for restaurant, bar, and nightclub owners, no matter where the food used in their establishments is prepared. Call us today to discuss your insurance needs.

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