Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a frozen yoghurt store.
This article will discuss the primary insurance coverage for frozen yoghurt businesses, general liability insurance, as well as additional policies that are appropriate for this industry.
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Frozen Yogurt Shops Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS THAT A FROZEN YOGURT SHOP’S GENERAL LIABILITY INSURANCE MAY COVER
Example 1: As a client leaves your store, she holds the door open for another customer, who then stands in the entryway to check his phone. As he comes to a halt, the door slams shut, knocking him to the ground and breaking his wrist. He is enraged and threatens to sue your store for monetary damages. General liability insurance would cover his medical expenditures as well as any legal fees you may incur.
Example 2: As your typical Monday delivery arrives, your loading dock’s overhead door fails, badly damaging the delivery vehicle. The driver is unable to finish his day’s orders, and the merchandise inside is destroyed. Your general liability coverage will most likely cover the delivery van repairs and inventory replacement.
Example 3: After cleaning up a yoghurt accident in the lobby, a client slips and falls on the wet floor before you can post a warning notice. They have been seriously harmed and demand that you pay for their medical bills. You may submit a claim with general liability insurance and have all of their medical expenses paid.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Frozen yoghurt cafes in America typically pay between $500 and $1,200 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Frozen Yogurt Shops
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all frozen yoghurt establishments should have are as follows:
Insurance for Product Liability
There is always the possibility that a consumer would allege that your product has harmed them in some manner. If this occurs and they decide to sue, product liability insurance will cover your legal expenses as well as the cost of any settlement granted in a case.
Insurance for Workers’ Compensation
Workers’ compensation insurance will cover the cost of an employee’s medical costs as well as missed pay if they are hurt on the job. Most states mandate this coverage for any firm that employs people.
Types of Insurance That Some Frozen Yogurt Shops May Require
In addition to the policies listed above, your frozen yoghurt store may need other forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Data Breach
Customers may now participate in loyalty programmes at many retail and food service establishments. This often necessitates the storage of sensitive personal and financial information on your corporate systems. However, having this information on file may expose your computer system to cyber-attacks. With data breach coverage, you can safeguard your company against potential litigation as a result of a cyber assault.
Insurance for Commercial Vehicles
You should have business vehicle insurance if you distribute frozen yoghurt to retail stores in your neighbourhood. In fact, you must this coverage even if you use your own vehicle for business purposes. Personal vehicle insurance will not cover accidents on the job, so be sure to protect yourself and your staff with business auto insurance.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.