In the great State of Washington, running a successful restaurant, food truck, or tavern is much like being the Alpha of your own wolf pack: you have to hunt for revenue, defend your territory, and keep a dozen hungry mouths (employees, vendors, customers) fed and happy.
The one thing a true Alpha doesn't do? Hope for the best.
We've seen great concepts crumble because the owner focused entirely on the menu and completely forgot about the inevitable disasters—the ones that are far more common than the total loss fire they spend a fortune insuring against.
You probably have General Liability and Property insurance. Good. That's the den. Now let’s talk about the specific risks circling your fence line.
1. The Real Threat Isn't the Wolf at the Door—It's the Customer Behind the Wheel: Liquor Liability
You serve alcohol. It's a key ingredient in many successful Washington dining experiences. And it's also your single greatest liability risk.
Your standard General Liability policy will look at an alcohol-related incident—a tipsy patron who causes an accident after leaving, or an altercation on the premises—and politely inform you that "This is specifically excluded."
The Wolf's Take: When a customer has one too many and decides to redefine "decorating" using a neighboring car, the General Liability policy has already packed its bags and left the territory. If you serve so much as a single glass of wine, you need Liquor Liability insurance to cover the inevitable lawsuit claiming your bartender (bless their heart) should have known better. In Washington, this isn't just a smart move; for establishments serving liquor, Washington law holds licensees responsible for injuries caused by overserved patrons.
2. A Cold Refrigerator is a Hot Liability: Spoilage & Equipment Breakdown
You’re running a tight ship. Your walk-in freezer is full of $15,000 worth of premium cuts. Then, at 2:00 a.m. on a Saturday, the compressor dies. Or, worse, a freak windstorm takes out a power line.
The Wolf's Take: Nothing screams "bad day" like watching thousands of dollars worth of inventory turn into biological warfare material because a $5,000 piece of equipment decided to retire early.
Equipment Breakdown (EBI): This is essential coverage that pays for the repair or replacement of mechanical, electrical, or pressure systems (ovens, refrigerators, HVAC). Without it, that new compressor is coming out of your pocket.
Spoilage Coverage: Pays to replace the perishable inventory (the spoiled meats, produce, and dairy) that went bad because of the equipment breakdown or power outage. This often comes as a high-value endorsement.
3. The Digital Kitchen Attack: Cyber Liability
You’re a restaurant, not a tech company. Right? Wrong.
You use a Point-of-Sale (POS) system, store customer payment data, and manage employee files digitally. The modern "thief" doesn't kick in the back door; they compromise your POS system and steal every credit card number swiped over the last quarter.
The Wolf's Take: Your security is great—you have a lock on the back door and a grumpy sous chef. Meanwhile, hackers are strolling through your digital systems like they own the place. A standard policy won't cover the forensics, legal notification costs, credit monitoring, or PCI fines you'll owe the card companies. Cyber Liability is the only way to cover the inevitable fallout when your system becomes a digital open buffet.
4. The Unplanned Delivery Service: Hired and Non-Owned Auto (HNOA) Liability
Whether you've embraced third-party apps or your manager makes a quick beer run in their personal car, your business has an auto exposure, even if you don't own a single commercial vehicle.
The Wolf's Take: Your best employee is using their beat-up sedan to drop off catering, gets into an accident, and the other driver sues your business. Why? Because they were on the clock. Their personal auto policy will pay up to its limit, but if the claim is larger (and lawsuits usually are), the plaintiff will come after the business's assets next.
HNOA Liability covers your business for liability claims when an employee uses a personal or rented vehicle for a business errand. It's an often-overlooked necessity for any operation that involves deliveries, supply runs, or off-site events.
How to Avoid Becoming the Next Dinner Disaster Story
In the Lynnwood area, we specialize in helping businesses like yours avoid the fate of the unprepared. You've built a strong business—don't let an uninsured gap in your coverage leave you exposed when the pack is running at full speed.
Ready to get your coverages as sharp as your chef’s knife?
Would you like me to schedule a brief call to review your current commercial insurance policy and identify where your blind spots might be?