Restaurant Insurance – Boats, Trailers And Uncovered Claims

As the owner of a restaurant, you have many things to worry about.  Most of the time you worry about the things that you know could go wrong in your business.  It’s tougher to worry about the things that you don’t know could go wrong, but in the end, those are the kinds of things that can bite you in the rear end the worst.  So what in the world do boats and trailers have to do with you running your restaurant and making a profit?

Bear with me, this may at first seem like a convoluted way to tell you about what I like to refer to as an unknown unknown.  But the reality is that there are a number of restaurant owners out there who own personal watercraft and don’t realize that every time they pull them down the road, that they are putting their very restaurant at risk.  So how can this happen?

Well, let’s start with the vehicle pulling the boat or jet ski.  Many successful restaurant owners have found nice tax advantages in titling their new cars in the company name.  Doing so almost invariably means that the company car is insured with a commercial auto policy.  And that is the correct way to do it as you want to be sure that your corporation or LLC is protected from liability as a result of an accident with this vehicle.  But this is where it gets a bit tricky.  Many successful restaurateurs also own boats, jet skis and other personal watercraft that they move about on trailers, towed by their company vehicles.  In NC, if you tow a vehicle with your personal car which is insured by a personal auto policy, then coverage automatically extends to liability caused by the trailer you are towing.  But with a NC business auto policy, this is not the case.  And this little detail can get a restaurant owner with a company car and a personal boat in a lot of trouble. 

You wouldn’t want to be involved in an accident that is your fault that involves this uninsured trailer being towed by your company vehicle.  Doing so could lead to an uninsured loss that might be large enough to wipe out your restaurant completely.  And that would be awful after you had worked so hard to always keep your insurance policies current  and in force.  This is a great example of what I call an unknown unknown. 

Clinard Insurance Group is a full service, independent insurance agency located in Winston Salem, NC.  We insure over 100 restaurants all across North Carolina and South Carolina.  We speak your language and understand your business.  We want to work with you to help you find those unknown unknowns for your business.  One of our partners has even owned 4 restaurants over the years.  We know that the insurance business is one business where you can save money by hiring experts and specialists over generalists and those with less experience.  If you would like our help with your restaurant insurance program, please feel free to call us directly at 877-687-7557 or visit us on the web at