Obtaining the right coverage for your restaurant can safeguard you against unforeseen risks, like vandalism or fire outbreaks. Protection against such events helps you avoid loss of income and other consequences that lead to substantial financial losses and operational disruptions. Restaurant insurance also protects other food industry businesses, including coffee shops, diners, taverns, food trucks, and cafes. Here are four things to include in your restaurant protection coverage:
1. Liquor Liability
Liquor coverage is a requirement if you run a business that manufactures, supplies, sells, or serves alcoholic beverages. Customers in taverns, nightclubs, and restaurants may get intoxicated after drinking alcohol, increasing the risk of them engaging in activities like fights. They may also cause injuries to your employees or cause damage to your business’s property. Liquor liability insurance helps cover the costs of damaged equipment and protects you legally if assaulted individuals sue your business. If your intoxicated customer gets arrested and charged for drunk driving, liquor coverage can also cover the associated legal costs.
2. General Liability
General liability coverage includes third-party claims, where a vendor, employee, or customer sues your restaurant business for negligence. These individuals may have been involved in a slip-and-fall accident, received cuts from sharp knives, or sustained other injuries within your restaurant, which enables them to file a legal claim against you. General liability restaurant insurance relieves your financial burden by covering fines or penalties the court charges you.
A general liability policy helps accident victims pay for medical treatment after getting injured on your restaurant’s property. This coverage protects restaurants from food-related claims if customers suffer food-related illnesses or allergic reactions. General liability also covers property damage to third parties, including situations like an employee damaging a client’s property by accidentally spilling a drink on it. If another restaurant business sues you for libel or defamation, general liability can cover your legal defense expenses.
3. Property Insurance
Property insurance for food industry businesses covers costs related to property damage due to bad weather, natural disasters, or crime. Among the inclusions is building coverage, which safeguards against income losses caused by fires, earthquakes, storms, or vandalism. Property insurance for restaurants also includes equipment damage coverage, which provides financial compensation for repair costs associated with equipment breakdowns.
Restaurant property insurance covers the replacement expenses if supplies or equipment get stolen or vandalized. If foods or drinks go bad because of interruptions like extended power outages, property insurance may cover the resulting costs. This policy type is customizable, including options like open or named perils packages. An open perils package is more comprehensive and doesn’t exclude specific events. Named perils packages only cover certain events specified during policy creation.
4. Errors and Omissions Insurance
Errors and omissions insurance protects your business if customers, staff, or vendors sue for negligence due to professional mistakes. These mistakes can happen if catering service providers deliver the wrong order or deliver it late. If a business’s food or drink fails to meet the agreed-upon specifications, this insurance can cover your legal fees. The insurance also protects restaurant businesses against legal claims in case of dietary misrepresentations or food mislabeling.
Protect Your Business With Restaurant Insurance
Purchasing comprehensive insurance for your restaurant can help minimize liability and keep your business operational. Restaurant insurance packages may include options such as worker’s compensation, director and office, and business owner policies. Obtaining these types of coverage protects your business’s financial health and contributes to its overall growth. Contact a reputable insurance agency today to learn more about creating a custom policy for your restaurant.
