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How Can Umbrella Policies Save Your Restaurants from Financial Liabilities?

Jul 05, 2023

Umbrella Insurance

How Can Umbrella Policies Save Your Restaurants from Financial Liabilities?

As a restaurant owner, it is essential to protect your business from unforeseen risks and potential liabilities, including customer injury claims, property damage lawsuits, bodily injuries caused by intoxicated patrons, etc. One way to protect your restaurant is to have an umbrella policy. An umbrella policy is an additional layer of coverage that goes beyond the limits of your existing insurance policies, providing extra protection in the event of costly claims or lawsuits.

Discuss how an umbrella policy can safeguard your restaurant's financial stability and reputation.

What Does Umbrella Liability Cover?

An umbrella policy provides liability protection beyond the limits of your other insurance policies. It covers your liability claims in increments of $1 million over the coverage limits of your existing policies. It will cover you when your current coverage falls short in covering damages, lost wages, or medical expenses resulting from an unfortunate mishap or lawsuit. 

Whether it is a quick service or a fine dining restaurant, you can buy umbrella policies with coverage limits ranging from $5 million to $250 million. With umbrella insurance in place, you can ensure that your restaurant thrives despite unforeseen claims and related financial pitfalls. 

How Can Umbrella Liability Insurance Strengthen Your Other Insurance Policies? 

General Liability

It covers:

  • Slip and fall accidents
  • Illness or injury claims resulting from food contamination
  • Lawsuits resulting from the above incidents

With umbrella insurance, you can get additional coverage for your restaurant, covering it from unexpected mishaps. 

Liquor Liability 

If you serve alcohol in your restaurant, you must have liquor liability insurance. If an over-served patron causes bodily injury or property damage to others, this will save you from resulting claims. If the claims are costly, exceeding your current policy limits, you need to cover the remaining out-of-pocket. However, if you have umbrella insurance, it will kick in to cover the differences. 

Auto Liability 

Auto insurance is a must for businesses having owned or leased vehicles, so you might already have commercial auto coverage or non-owned and hired auto (NOHA) coverage. Auto accidents remain the leading cause of liability claims and lawsuits for many businesses. If an accident is caused involving your business-owned or leased vehicle, you will be held responsible for the resulting claims that could exceed a million dollars. If your existing auto coverage cannot meet the claim amount, an umbrella policy will cover it, provided you have it. 

Employers Liability 

It covers claims resulting from wrongful termination, sexual harassment, and discrimination. These claims could be expensive so an umbrella policy can cover the costs beyond your existing policies. 

With the unpredictable nature of the food industry and potential risks, an umbrella policy for restaurants is indispensable to running the business with peace of mind. It serves as a vital asset for restaurants, offering an additional layer of protection beyond standard liability coverage. 

Protect Your Restaurant Against Uncertainties with Fuller Insurance 

Are you looking for comprehensive insurance coverage for your restaurant? Look no further than Fuller Insurance Agency. We offer customized restaurant insurance that includes several coverages, including umbrella insurance, to protect your business from potential legal and financial claims. Contact us today to personalize coverages for your restaurant’s unique needs and risk factors, or call us directly at (800) 640-4238. 

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