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Trends That Can Affect Your Bar And Restaurant Insurance Coverage

If you want to put up a bar and restaurant business, you must insure your business. However, before doing that, you have to make sure that you can find out more about the existing trends that can affect your insurance coverage for the bar and restaurant.

Do not worry because we will help you understand these trends and how they could affect your insurance coverage before anything happens.

Building Replacement Costs and Inflation

Buildings are becoming increasingly expensive due to rising construction costs. In fact, during the previous year, the cost of the most basic building materials has risen by double digit percentages. As a result, if your restaurant is seriously destroyed by a storm or fire, the cost of rebuilding the structure will be significantly greater and could cause your insurance to change.

Inflation in the Social Sector

The least tangible driver of insurance prices is social inflation. It's a more recent occurrence that's more difficult to foresee, plan for, and defend against.

With a rise in insurance claims comes a rise in lawsuits within the business. Costs of operation increase and prices go up. Insurers are being pushed to boost rates as the possibility of social inflation becomes more regular yet unpredictable.

The Location Factor

You also have to pay higher premiums depending on the location of your restaurant. If it is in a safe neighborhood, you may not have to worry about price hikes. However, if you’re located in a not-so-safe part of town, you may have to prepare your pockets for more payments because your location is considered risky.

The Need to Extend Insurance Coverage

It is also advisable to extend your coverage points by bundling up your restaurant Insurance with health and workers’ comp insurance policies. This way, you will be able to protect your employees along with your establishment.

Don’t forget to do research before extending your insurance coverage. This way, you will be educated on what you need before you even have it.


It's all about making sure that you can get the most out of your existing insurance policy. Thiswill allow you to help others while helping yourself and your business platform.

At Second Western Insurance Services, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (818) 952-5203. You can also request a free quote by CLICKING HERE. Coverage discussed in this article is not guaranteed. Please contact our agency to go over your existing coverage. We are happy to help you make sure your needs are being met!

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