How Converting Your Home to A Restaurant Impacts Your Insurance


    The first thing to do when considering a home-based business is to research what kind of insurance you need to carry. Home insurance doesn’t always cover a home-based business, and in some cases, running a business can void your home insurance policy. Insurance companies reserve the right to cancel your insurance policy if you mislead them about the activities within your home. Your insurer can help you understand what your existing homeowner’s insurance policy covers and what other type of insurance coverage you may need.

    Professional liability insurance protects both you and your customers in the event personal property damages occur. This liability insurance protects your personal assets and pays for your defense against an insurance claim. It’s a good idea to have business property or business contents insurance in addition to homeowners insurance.

    Homeowner’s policies generally limit the amount you can claim for contents in the event of loss or damage. You need to know how much of your business equipment and supplies can be replaced. It’s also important to understand that many coverage options only protect content when on-premises. If you have a work phone or computer outside of your home-based business, it may not be protected under a homeowner’s insurance if compromised when not on-premise.

    Home Insurance

    Home and contents insurance combines the features of both home insurance and contents insurance under one premium. A home insurance policy generally covers the costs of rebuilding or repairing your home, roof, and other structures on your property such as sheds and garages due to damages caused by natural disasters including hurricanes and floods. Contents insurance protects your possessions, including furniture, appliances, and other valuable items from theft and vandalism. Some insurance policies offer add-ons for accidental property damage and repair or replace the actual cash value.

    Take advantage of the home insurance compare tool at They help homeowners compare insurance coverage options from a range of insurance companies to find the right amount of coverage for their needs and budget. Having the peace of mind that your home and business have enough coverage allows you to focus on running a successful home-based restaurant.

    Licenses and Permits

    After speaking with your insurance provider about your home-based business plans and clarified the need for any additional coverage, you need to determine what licenses and permits you need. Research local zoning rules to ensure you can operate a restaurant out of your home. You will have to pass state food cleanliness requirements, which means your business kitchen has to be separated from your personal kitchen. You’ll also need to get a business license and resale license to purchase ingredients wholesale, tax-free.

    Restaurant Equipment

    Determine what your niche is and design a theme that aligns with your brand. The type of food and restaurant you are planning dictates the type of restaurant equipment you will need. Whether you are opening an artisan bakery or organic lemonade shop you need the right restaurant supplies to operate efficiently. You’ll want to purchase pots, pans, small wares, dinnerware, and glassware for the best price possible.

    The Restaurant Warehouse offers a low price restaurant supply in Seattle for restaurants of all types and sizes. You can shop for appliances, refrigerators, prep tables, disposables, versatile smallwares, and other restaurant equipment from notable brands. Customers receive free shipping on all U.S. orders, and restaurants in the city of Seattle can enjoy doorstep delivery. The quality of your restaurant equipment plays an important role in the quality of your food, and in turn, your customer satisfaction.

    No matter the size or type of home-based restaurant you want to operate, you don’t want to leave your coverage level to chance. Before drafting a business plan, speak with your insurance carrier about your intentions. They can recommend if you need to find a separate policy from your current policy to ensure you are protected by the necessary level of coverage.