10 Coverages Your Restaurant or Bar Needs to Have
Written by
Evan Romo
Friday, March 10, 2023
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Professional Liability

Arguably the first insurance your establishment should acquire. Although there are a variety of coverages that address more specific kinds of claims, it all begins with Professional Liability. This protects your restaurant from claims that you made a mistake within the services that you’ve provided. This is such an important insurance to have because in the end, you can win a lawsuit, but at such an expensive cost. These are problems you may solve, but the solution is one you never want to go through. Professional Liability covers your business is such a crucial way.

General Liability

Good old GL. General Liability, or GL, is not only essential for your restaurant or bar, but it is also a crucial coverage for businesses within almost all industries. Essentially, a General Liability coverage will keep you covered from bodily injury claims made by your customers. Not only are there real accidents, but you have the countless stories of customers who try to pull a fast one. Risk from everywhere means it goes without saying that a GL package is a must have for your establishment.

Worker’s Compensation

Sitting right next to General Liability on the bench of super highly important coverages for restaurants and bars is Worker’s Compensation. In the restaurant and bar industry, the possibilities of a mishap or injury is extremely high, and protecting your employees should be top on your list! From the kitchen to the bar to the seating areas, an accident can happen in so many places, and if it were to happen to an employee, you can expect to be responsible to cover the damages. Worker’s Comp protects you from these costs that you’d be taking on from an accident.

Building Insurance

Protecting your customers, your employees, and your establishment. Commercial Property Insurance ensures that you will be okay in the event of damage to your building. This can range from minor accidents to major incidents that would require you to rebuild the entire building. With such heavy use of a kitchen, you absolutely want to be prepared in case of any fires. That’s within the building. You can’t forget about all of the unknown that lies outside of the building such as a car crashing into it!

Food Contamination Insurance

In the restaurant and bar industry, you are dealing with many perishables. Food and drinks can easily go bad and replacing the lost items can get costly. You don’t make money from your unused items, thus making them sunk costs, and if your goods are tainted and reach your customers, they can be in position to win a HUGE lawsuit against you. Your food and drinks are the main product you are providing to your customer! You want to ensure that your inventory is covered to keep your overall business covered.

Employment Practices Liability Insurance

In bars and restaurants, a lot of dynamics can exist amongst the team running the place. However, despite any beliefs of great relations, a termination can easily be turned into a legal dispute if an employee felt like they were wrongfully let go. Jokes can be flying around during a slow hour, and one of them may just be crossing the line. All of a sudden, there is a big discrimination case sitting right in front of you. There are so many incidents that you are never prepared for, but Employment Practices Liability Insurance, or EPLI, ensures that you are covered for this.

Business Interruption Insurance

Another standard in the restaurant and bar industry. It was important even before Covid, but now we know just how drastic a temporary shutdown can be on a business. So drastic that temporary becomes permanent. Even when a closing down is indeed temporary, the costs of shutting down for even just a couple of weeks are costs that no business wants to face.

Liquor Liability

A high percentage of restaurants sell alcohol to their guests which puts their establishment at a high risk of accidents through drinking. Liquor Liability becomes even more important when you realize that it extends to outside of the establishment. If a guest of your restaurant was given one too many, and they were to get into an accident away from your location, they can still file a lawsuit against you. If your employee mistakenly over-served the patron, you can be facing some pretty large legal expenses. With alcohol bringing in such unpredictability, liquor liability is extremely important to have.

Employee Dishonesty

Employee Dishonesty can absolutely come in handy for your restaurant or bar. Is it not an unusual sight to see a bartender take a shot with a customer who buys them one. Depending on who you ask, this is acceptable on an occasional basis. However, some of us may have seen those bartenders who are practically a customer at the same time. Taking a shot whenever they pour one for a guest. It may not be an everyday thing, but it happens, and this employee dishonesty can cost you depending on the item! In this case, they could be pouring away hundreds of dollars for themselves from a very expensive bottle! Employee dishonesty covers from this unfortunate possibility.

Hired and Non Owned Auto Liability

Although this coverage can be avoided for some establishments, Hired and Non-Owned Auto is still a very common and crucial package to have for your restaurant. Before the Covid-19 pandemic, delivery was not as common. However, since then, it has spiked tremendously and, it is almost certainly going to stay. If your employees are using their own vehicles to make these deliveries, you would be liable if they were to get into accident while on delivery. Your employees would be expecting you to cover this because there is a high chance that their own personal auto will deny the claim. Even if you aren’t delivering your food, any business errand completed in an employees vehicle is fair game. It’s important to remember that this covers only your business. Your employee would still need to contact their own personal insurer to cover their damages.

Are you ready to obtain coverage for your restaurant or bar? You can find more information on Commercial Insurance and get in touch with us at florinsurance.com/commercial!

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