As a restaurant owner, you understand the need to protect your business against costly risks. Whether it’s property damage, injuries, or liability lawsuits, purchasing a commercial insurance policy safeguards your restaurant from unexpected events. This restaurant insurance prevents you from paying out of pocket for huge losses or claims. Here’s what to expect from a commercial insurance policy for restaurants:
General Liability Insurance
Food and beverage service enterprises deal with multiple customers and vendors daily. If these individuals experience physical injury in your restaurant, it’s your job to pay for their medical expenses. This type of restaurant insurance is a requirement for many commercial food establishments.
This insurance policy will also cover you if your business operations cause damage to other people’s property. Other cases in which this restaurant insurance applies include protecting your business against claims resulting from reputational harm and advertising liability.
Property Insurance
Commercial property insurance will protect your restaurant building and the equipment you use. It also covers losses related to equipment breakdown and food spoilage.
When purchasing restaurant insurance, you can choose between perils coverage and open perils coverage. If you opt for open perils coverage, this policy will cover you against all perils that cause damage in your restaurant.
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Liquor Liability Insurance
Liquor liability is another commercial insurance you can purchase for your business. It protects restaurants that sell or serve alcoholic beverages at the establishments. If your restaurant serves alcoholic beverages to intoxicated customers, your business will be liable for their actions. Intoxicated patrons might cause accidents due to drunk driving upon leaving your restaurant. They might also assault, injure, or damage other people’s property.
This type of restaurant insurance will cover claims of damages or bodily injuries caused by intoxicated patrons. It covers things like medical expenses for the injured individuals and repair costs for damaged property. If the patrons or affected individuals sue your business, the insurance will cover the legal fees and settlement payouts.
Worker’s Compensation Insurance
A restaurant must protect its employees against risks that might injure them. Such risks include slips and falls or assaults when dealing with intoxicated patrons. In case of accidents or assaults leading to injuries, worker’s compensation insurance will protect your business against various claims. It pays employees’ medical fees, including diagnostic tests, hospitalization, and prescription medication. This type of restaurant insurance can provide disability payments to cover lost wages for recovering employees.
Errors and Omissions Insurance
Clients might sue your restaurant over work errors, missed deadlines, or unsatisfactory results. Purchasing errors and omissions (O&E) insurance, also called professional liability insurance, will protect your business from such issues. O&E is a type of insurance that protects you from significant financial losses when clients claim negligence due to errors and omissions. The insurance will include the associated legal expenses if the client sues your business.
Purchase the Right Restaurant Insurance Policy
Protecting your restaurant with commercial insurance policies helps you run your business smoothly with fewer headaches. If you’re looking for the right restaurant insurance policies, assess your business needs to choose one that suits you. You can also work with an insurance agency to understand and select appropriate coverage options. Contact a reputable insurance agency today to purchase the right commercial insurance policies for your restaurant.
