What to have covered before you open the doors

Most new owners find out what they needed insured the hard way -- after something goes wrong. Here's the order to actually handle it in.

1. General liability -- before you sign a lease

Most commercial landlords won't hand over keys without proof of general liability coverage. This is usually the very first policy you'll need, often before construction or buildout even starts.

2. Builder's risk or property coverage -- during buildout

If you're renovating a space, your equipment, fixtures, and materials are exposed during construction. A property policy (or a builder's risk policy specifically for the renovation period) covers theft, fire, and storm damage before you've even opened.

3. Liquor liability -- before your TABC permit is finalized

If you'll serve alcohol, liquor liability is frequently a documented requirement tied to your permit and any event or landlord agreements. Line this up well before your opening date -- carriers need time to underwrite it, and a delay here can push back your opening.

4. Workers' compensation -- before your first hire

The moment you have employees, workers' comp isn't optional. Kitchens and bars have real injury rates -- cuts, burns, slips -- and this policy protects both your staff and your business from a direct lawsuit.

5. Business interruption -- once you're operating

Once doors are open and revenue is flowing, business interruption coverage is what keeps a fire, storm, or forced closure from becoming a permanent shutdown -- it replaces lost income while you're rebuilding.

The honest timeline

Start the liquor liability and general liability conversations 6-8 weeks before your target opening date if possible. Underwriting takes time, and being the owner scrambling for coverage the week before opening is a genuinely stressful (and avoidable) position to be in.

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