Operating a restaurant can be difficult at times. Your rights and responsibilities as an owner are constantly evolving. While maximizing profits is your primary objective, there are several risks to be concerned about. Restaurant insurance gives you a layer of protection during emergencies. However, each situation is different. Bars, cafes, and food delivery restaurants each face different challenges. Something that all restaurants have in common though is the need for a strong liability insurance policy.
Obtaining general liability insurance is a mandatory requirement in most states to legally open a business. The policy covers your business in emergency situations where your assets could be at risk. One major accident and potential lawsuit could cause your business to close if you don't have the proper protection in place.
General liability insurance covers you if your business is responsible for damaging someone's property. Perhaps one of your waiters spills food or a drink on your customer's phone or tablet. Perhaps one of your employees is out completing a delivery service, and they hit a parked car or a building. General liability insurance covers you in these scenarios. The policy will handle any repair or replacement costs.
Operating a restaurant means that there will be a lot of traffic on the premises every day. The more traffic on your premises; it increases the likelihood that someone may suffer an injury. Perhaps one of your customers accidentally slips and falls, breaking their ankle in the process. General liability insurance will cover their medical treatment. If the injured party opts to sue, the policy will cover your legal defense fees. In the event that a fatal accident occurs on the property, general liability insurance will cover the funeral expenses.
Advertising disputes occasionally arise in a competitive market like the food industry. If one of your competitors alleges that you copied their marketing strategy, they may sue you for copyright infringement. General liability insurance covers you throughout the legal process. The insurance also covers you against accusations of slander and defamation of character. Developing a unique marketing campaign is an easy way to help distinguish you from the competition. That's why general liability insurance for a restaurant is so important.
If you are serving alcohol at your restaurant, it's recommended that you make sure that your liability coverage includes host liquor liability insurance. This insurance covers your business if damages occur directly from a patron consuming too much alcohol and becoming intoxicated. If you don't have host liquor coverage, you will be responsible for covering all of the potential medical bills and repair costs out of pocket.
It's recommended that you assess multiple quotes while researching restaurant insurance. Every restaurant has unique factors that expose them to potential lawsuits. If you're operating a small restaurant with minimal risk, purchasing a Business Owner's Policy may be your best option. A BOP can help you save money because you're obtaining multiple types of coverage at one price. Restaurant owners commonly add interruption and cyber liability insurance to their BOP.
In serious cases, general liability insurance can prevent you from losing everything that you've worked for. If you have any questions, contact our team here at Fuller Insurance Agency, and we will help you protect your investment.