Pizza-By-The-Slice Restaurant Business Insurance
Getting insurance for your pizza-by-the-slice restaurant is essential.
Pizza-by-the-slice restaurants need to be protected against claims arising from things like foodborne illnesses, premises liability, and wage and hour violations.
For example, if your restaurant has failed to pay its workers overtime, it could be faced with a lawsuit for violating these wage and hours laws.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Pizza-By-The-Slice Restaurant
General liability insurance is — generally speaking — one of the most important insurance policies for pizza-by-the-slice restaurants.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability is the most important component of your restaurant’s protection, there are several other policies you should also be aware of:
- Workers’ compensation insurance: If your restaurant has full or part-time employees, it is legally obliged to own this policy.
- Product liability insurance: If your restaurant is faced with a lawsuit for any harm caused by its food or other products, this policy will cover the legal costs.
- Liquor liability insurance: Protects your restaurant from any accidents suffered by customers as a result of drinking alcohol you served them.
Two options are available to your pizza-by-the-slice restaurant when it comes to the types of places you can buy insurance from:
- Traditional brick-and-mortar insurers — Includes the likes of Nationwide and Hiscox.
- Online insurers — Includes the likes of Next and Tivly.
While you may have heard of more traditional insurers, online insurers are generally more popular among businesses because they offer comparable services at a fraction of the cost.
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Cost of General Liability Insurance
On average, pizza-by-the-slice restaurants in America spend between $500 - $1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a pizza-by-the-slice restaurant to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Pizza-By-The-Slice Restaurant
Example 1: While entering your restroom, a customer slips on some wet flooring, injures herself in the resulting fall, and decides to sue your restaurant for damages because you didn’t mark the wet area. General liability insurance would pay for your legal defense and any required settlement.
Example 2: Another local pizzeria sues you for slander and libel. While you disagree with both claims, you know you need an attorney to defend your business. General liability insurance would cover your legal defense costs.
Example 3: As an employee brings supplies into your restaurant, he accidentally runs into a customer. The customer falls backward, sustains a concussion, and demands you pay for his medical treatment. General liability insurance would cover his medical expenses.
Other Types of Coverage Pizza-By-The-Slice Restaurants Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.
Product Liability Insurance
While you strive to ensure your pizza puts a smile on every customer’s face, there’s always a chance someone might decide your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Liquor Liability Insurance
If you sell alcoholic beverages at your restaurant, you need liquor liability insurance to protect you from lawsuits related to your customers’ consumption of the alcohol you sell them. If a customer sustains an injury and decides to sue your business, this coverage would pay for your legal defense and any required settlement.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your pizza-by-the-slice restaurant:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Pizza-By-The-Slice Restaurant Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. It’s paramount that you don’t overlook the importance of obtaining business insurance for your pizza-by-the-slice restaurant before launching your business.
This is what shields your restaurant from the many unforeseeable risks inherent to the food service industry. What’s more, your business is likely obligated by law to carry specific policies (e.g., workers’ compensation insurance).
Not necessarily. Certain exceptions may be written directly into your pizza-by-the-slice restaurant insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.