Donut Shop Insurance
Owning a donut shop is a great investment. Whether you enjoy baking the donuts yourself or you simply own it as an income generation tool, it is likely to be a solid investment for many years to come. Families enjoy visiting donut shops on special event days and individuals, couples or groups may visit your shop as a gathering place to enjoy company with their tasty treats. Keeping everything running like clockwork takes work and can be quite stressful at times. If an accident or unexpected event arises it can add to your stress and potentially put you out of business if the cost to recover is too much. Protect yourself from these types of risk by carrying business insurance for donut shops.
Commercial General Liability
General liability is your donut shop’s first line of defense against accidents and day to day hazards. This is a commercial insurance policy that provides you with a broad level of protection against a number of different types of potential problems. Unlike other types of insurance, general liability will automatically protect your company as it grows and expands. It provides protection against most things as long as they are not specifically excluded on your coverage policy. This means that if you decide to open a new donut shop, it will have all of the benefits of your general liability policy protecting it from the start. Here are a few ways it does that:
General Liability Insurance Includes:
- Premises Liability – Your donut shop needs lots of customers to visit regularly so that you can continue to earn profits from the business. When you have a lot of foot traffic to your business, there is always the small risk that an accident can happen. A freshly mopped bathroom floor for example, can be slippery enough to cause someone to fall and break a bone. Premises liability provides coverage for accidents that cause physical injuries or harm on your business premises. It also provides coverage if a customer’s property is damaged or destroyed while they’re at your donut shop.
- Products Liability – Products liability provides for your legal defense expenses when allegations are made, and pays for customer injuries or damages when the products you created or sold caused harm. If your donut shop sells a cup of coffee that is hot enough to cause severe burns, the customer may sue your company if they feel you did not warn them about the danger.
- Completed Operations – Completed operations coverage is another section of your general liability insurance that protects you when things go wrong, or when someone claims they have. If a customer files a lawsuit that claims you provided services that ended up damaging their property or causing injuries, this section of your policy protects you from both the legal and the financial fallout. It also pays for the customer’s damages or legal judgments if applicable.
Business Owners Policy
To protect the physical and intangible assets of your donut shop, you’ll need a business owners policy, or BOP. When you acquire a BOP you will automatically have general liability insurance as noted above, because it is included by default. The BOP adds an extra dimension of coverage because it is designed to protect physical business property such as your donut fryers, and intangible property such as credit card processing software. You can select only the types and levels of protection you need. Some options include:
- Buildings and Contents
- Business Income and Extra Expense
- Electronic Data
- Newly Acquired or Constructed Buildings
- Employee Dishonesty Coverage
Business Auto Insurance Policy
Recovering from an auto accident can be quite costly. If people are injured and you or one of your employees was at fault, your company will have to pay for the injured person’s medical care and treatment. If your company delivery van is vandalized or stolen, you may be unable to handle the immediate large financial impact of repairing or replacing it. Business auto insurance can be configured to provide you with these types of coverage and more.
Workers Compensation Insurance
In most states of the nation your company is required to carry workers comp insurance for its employees. This coverage protects the employee and your company simultaneously, regardless of who was at fault. If an accident occurs on the job and it causes one of your employees to sustain injuries, workers comp pays the related expenses that arise. It can pay for time off work, temporary disability, rehabilitation, emergency care and more for your employee.
Commercial Umbrella Insurance
If an accident or unexpected event is large or severe enough, it can exhaust the limits of your business insurance policies. When the insurance reaches its maximum benefit or payout limits, you may find yourself having to pay for the rest out of pocket. An umbrella policy can take that risk by extending coverage.