When shopping for restaurant insurance, you will want to make sure that the policy covers the specific risks that your restaurant faces. This includes, but is not limited to, protection against third party liabilities, personal property protection, and sudden breakdown of equipment.
Rainbow in this regard is a new-generation insurance company helping restaurant owners manage the risks and challenges they face in the day-to-day running of their business like property damage, liability, and business interruption, by providing them with fully tailored and customizable coverage.
Their policy integrates pay-as-you-go insurance – which can help you avoid overpaying for insurance, and only pay when your restaurant is open and operating (typically every month), with an optional need for annual premium payment.
Rainbow Insurance pay-as-you-go service is ideal, particularly for small and medium-scale businesses who are seeking to minimize costs in their restaurant business. Customers can also save more on their policy by utilizing Rainbow’s discount offers.
Take a look at our review to learn everything about Rainbow Insurance, including the average cost of their policy and the coverage options available.
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About Rainbow Insurance
Rainbow is a relatively new insurance company established in 2021 and based in San Francisco, California. According to the company, their team includes serial entrepreneurs with backgrounds in building startups, insurtech, AI/machine learning, automation, and insurance underwriting.
They currently offer restaurant insurance in a limited number of states in the US.
State availability
Rainbow is available in only six states which are:
- Arizona
- Indiana
- Michigan
- Pennsylvania
- Texas
- Utah
According to the company, coverage for more of these states will be included in the future.
Rainbow restaurant insurance coverage
Rainbow restaurant insurance covers you from a range of risks which are:
- Employment Practices Liability Insurance (EPLI): In business anything is possible, and the unexpected could happen anytime. Rainbow includes coverage for your food service business if it faces legal action due to employment practices including wrongful termination, discrimination (based on race, sex, age, or disability), and any form of harassment. Rainbow will pay up to the limits specified in your policy.
- General Liability (Up to $2,000,000 and 4,000,000 max): Sometimes also referred to as business liability insurance, this coverage can help protect your business from various cases caused by damage or loss to third parties. Rainbow will cover you from third party injuries when a customer, for example, slips and falls in your shop, including property damage caused to customers, and product liability if a customer is harmed after consuming your product.
- Business Personal Property (Up to 5,000,000 for TIV):ng perishable ones. Rainbow will provide compensation for spoilage of perishable items such as fresh produce, dairy products, meat, seafood, etc. if there is a covered loss such as an unforeseeable failure of the public electricity supply, equipment breakdown, or contamination of the food.
- Property: This coverage is specifically designed to protect the physical structure of your restaurant, which includes the building and any permanent fixtures installed in it, as well as outdoor structures like patios or fences. When your business suffers from these damages, Rainbow will reimburse you for the cost of repair or replacement.
- Spoilage: Restaurants typically have all types of food, including perishable ones. Rainbow will provide compensation for spoilage of perishable items such as fresh produce, dairy products, meat, and seafood if there is a covered loss such as an unforeseeable failure of the public electricity supply, equipment breakdown, or contamination of the food.
- Liquor Liability (Up to $1,000,000 for 65% liquor sales and limits: If your wine bar restaurant sells alcoholic beverages, this coverage can help you evade claims arising from third parties where alcohol is the leading cause. Several states, including Arizona, Michigan, and Utah require you to own liquor liability insurance if you run or operate a restaurant that offers liquor, beer, wine, or other alcoholic beverages.
- Equipment Breakdown: Rainbow coverage options also include protection when you’re hit with an accidental breakdown of essential equipment like electrical systems, point-of-sale systems, and even cooling systems.
How Rainbow’s Pay-As-You-Go Business Owner’s Policy works
Rainbow employs a monthly pay-as-you-go Business Owner’s Policy (BOP) system to provide hassle-free and cost-effective insurance services. This allows you to pay your premiums based on the actual payroll or sales figures during the policy period without requiring you to predict your yearly revenue like most traditional insurance do.
To enable automatic pricing of general liability insurance premiums, policyholders must connect their business POS or accounting system to Rainbow, which will then price the premium based on the monthly sales generated by the business.
[Need pay-as-you-go car insurance? Check out our review of Hugo Car Insurance]
Type of restaurant covered by Rainbow
Over the years, the restaurant landscape has increasingly changed, so Rainbow tries to make its coverage adaptive to these changes.
Here are the types of restaurants Rainbow provides cover for:
- New restaurant ventures
- Fast casual
- Fine dining
- Wine bar
- Fast food
- Pizza shops
- Ghost kitchens
Discounts
- Credits for affinity memberships when you are part of the Rainbow Insurance affinity group.
- Free access to training and safety resources for customers when they enroll for a policy.
- Discounted premiums for safe business practices: You can save on fees by showing you have a lower profile operating risk when you take Rainbow’s loss control survey. Once confirmed, a credit will be applied to your premium.
Risk activities include:
- Refrigerator maintenance
- Slip & fall protection
- Fire prevention
- Liquor training
- Food safety training
- Experienced management
Rainbow Insurance reviews and ratings
As a new company only established a few years ago, enough information is yet to be known or heard from consumers about their experience with Rainbow.
However, Rainbow’s policies are issued by insurance carriers with a Financial Strength Rating of A- Excellent by AM Best. Rainbow is also a licensed property and casualty insurance producer in the states it operates.
User experience
As a company with experts in numerous fields, including software development, underwriters, and brokers, Rainbow provides customers with a simple and user-friendly website, where they can log in to their account, get a quote, and have access to other valuable information.
You can as well lodge a claim on the site and get real-time updates.
Pros and Cons
Pros:
- Flexible pay-as-you-go policy with no audits & upfront premium payments
- Coverage for a variety of restaurants
- Fair discounts
Cons:
- Does not directly sell insurance policies
- New company
How to get a quote
To get a quote visit the Rainbow website online.
- Provide your name, DBA (optional), and other personal information.
- After this, choose the class of your food service or restaurant type.
- Provide how many hours your business typically opens daily, including your estimated annual sales, the year your restaurant was built, the construction type along with other info about the building.
- Proceed by selecting your general liability limit, and then enter your BPP limit.
- Lastly, choose your deductible and set when you want your policy to kick in.
Frequently Asked Questions (FAQS)
Does Rainbow offer umbrella and workers compensation?
At the date of publishing this, Rainbow does not offer umbrella and workers compensation insurance. However, the company has indicated on its website that these coverages will be available soon.
How can I reduce the cost of Rainbow insurance?
You can save more or reduce your premium cost by leveraging the discount offers provided by Rainbow and also choose a high deductible when enrolling for your policy.
How do I cancel Rainbow Insurance policy?
You can cancel your policy through your online portal.
