Every time I review a restaurant’s insurance, I see the same patterns — coverage that hasn’t kept up, gaps that were never clearly explained, or decisions made quickly on price without a full picture of the risk.
You’ve put too much work into your business for insurance choices made years ago to quietly create problems when a claim or audit finally brings them to light.
Here are the big seven mistakes I see in Utah and Idaho—and more importantly, how to fix them.
1. Disconnected Business and Personal Plans
If your business insurance doesn’t “talk” to your personal insurance, you’ve got a massive crack in your foundation. One serious lawsuit can pierce right through that gap and threaten everything you own.
- The Fix: Ensure your personal and business coverage are unified into one clear strategy.
2. Insuring “Annoyances” While Ignoring Disasters
I see restaurant owners over-insuring small things—like a single fryer—while under-insuring the “business killers” like liquor liability or umbrella limits.
- The Fix: Shift your focus to insuring the six-figure events that actually end businesses.
3. Playing the “Quote Game” Instead of Having a Strategy
If you don’t have a 3–4 year plan for your carrier history, limits, and audits, you aren’t managing risk—you’re just gambling.
- The Fix: Win by maintaining strong limits and staying stable for a few years to earn the best credits, then re-shop strategically.
4. The “It Won’t Happen to Us” Mindset
Fires, foodborne illness, and liquor claims don’t care how good your food is or how clean your kitchen feels. Bad luck doesn’t check your Yelp reviews before it strikes.
- The Fix: Prepare for the worst-case scenario so that one bad day doesn’t become your last day.
5. Messy Books and “Audit Shocks”
Sloppy tracking of payroll, tips, and subcontractor COIs is a hidden cost that raises your premiums and creates massive true-up bills.
- The Fix: Keep your books clean and gather vendor COIs fast to avoid audit surprises.
6. Treating “Cheapest” as “Best”
Price is not value. Some cheap carriers are absolutely brutal when it comes to paying out claims or handling audits.
- The Fix: Choose carriers vetted for their claims performance, not just their monthly premium.
7. Following Blind Advice
You don’t need to be an insurance expert, but you need to be informed enough to spot real guidance versus a sales pitch.
- The Fix: Work with an advocate who explains the “why” behind the coverage in plain English.
Your “Quick Win” Checklist (Run This Today)
Take five minutes and ask yourself these questions to see if your restaurant is sitting on a “bomb”:
- Do I actually know the difference between the “cheapest” company and the “best” one?
- Do my business and personal plans connect?
- Am I insuring for lawsuits and major disasters first?
- Do I have a 3–4 year stability plan for my insurance?
- Are my limits strong enough to attract top-tier carriers?
- Are my books and vendor COIs organized?