An important part of running a successful bar or restaurant business is making sure you have the right insurance in place to protect against theft, damages, liability and other risks.
While there are many insurance types out there, some of the most common types of insurance to protect your bar and restaurant include: property insurance, general liability insurance, liquor liability insurance and business owner’s policy (BOP).
Let’s take a closer look at each one to better understand how bar and restaurant insurance works.
You need liability insurance in case someone gets hurt on your property or eats something they’re allergic to. If a customer slips on your bar’s slick tile floor, she may sue you for injuries if you don’t have general liability coverage.
General liability protects you from lawsuits as well as helps cover business interruption—for example, if you have to shut down for a few days after getting sued by someone.
Restaurant insurance for General Liability also covers loss or damage of business property (furniture, fixtures), employee injuries and work-related accidents, advertising injury or error, food spoilage due to power failure (if there is no generator).
It does not include medical payments coverage which covers employee medical bills if they are injured at work and it does not cover legal costs should one be sued.
If you own a bar or restaurant, chances are you’ve had a worker file a workers’ compensation claim in your place of business. Workman’s comp is an insurance policy that any business can buy to protect them from personal injury claims brought on by their employees.
The level of coverage needed depends on how many employees you have, but general guidelines say that if you have five or more staff members on your payroll at one time, then it’s worth looking into. Talk with an insurance agent today about ways in which bar and restaurant insurance can help your business protect itself from liability claims in California.
Property Damage Liability
In addition to protecting your assets, you’ll want a policy that covers property damage from things like fires, floods or broken beer mugs.
Property damage liability insurance is a type of liability coverage which protects against bodily injury and property damage caused by an insured person’s negligence on someone else’s property.
Typical insurance policies provide $1 million in property damage liability coverage for premises owned by an insured person. Check with your agent about how much coverage is right for you.
Liquor Liability Insurance
If you’re hosting an event with any kind of alcohol, it’s critical that you have liquor liability insurance. Liquor liability insurance can protect your business from a variety of accidents, lawsuits or injuries—even when there has been no negligence on your part.
Typically a low-cost investment, liquor liability insurance is definitely worth its weight in gold (if not more). After all, nobody wants to risk losing their life savings because they failed to plan for one simple scenario.
Buying a new delivery vehicle? That’s great! But keep in mind that it may not have all of your business’s needs covered. Make sure you choose a plan that covers theft, damage, personal injury, business property damages and weather-related events for every vehicle on your lot.
Restaurant insurance also has commercial liability coverage; having third party cover can help save your company from potential lawsuits should a customer have an accident on your premises or slip over spilled drink you served him.
Bar and restaurant insurance is a good option for bars or restaurants with a moderate volume. Umbrella coverage can be paired with property, liquor liability, and general liability policies, extending your coverage further in case anything should happen.
An umbrella policy provides added protection from losses that may fall outside your regular insurance scope—the insurance covers claims related to libel, slander, copyright infringement, products liability, premises liability etc. for an additional cost (around $1-2 per thousand dollars of insurance).
The policy does not cover fraud or other intentional wrongs committed by your business—there’s a line on each form defining what is covered and what is not.
Crime and Fire Insurance
As a restaurant owner, you’re responsible for more than just cooking—you’re also responsible for keeping your business safe. Depending on your city and state, you might need two types of insurance to protect your bar or restaurant: crime insurance and fire insurance.
Crime insurance covers damage done by third parties like vandals, thieves, robbers, or gangs. This type of insurance is particularly important if you run a bar that serves alcohol; some states require bars to have crime insurance in order to serve alcohol.
Fire insurance covers fire-related damages caused by your own negligence or faulty equipment. Even if you don’t serve alcohol, it’s still smart to invest in fire insurance; fires can be hard to predict and can quickly destroy your business.
Bar and restaurant insurance covers a wide range of things, including theft, liability, liquor laws, and employee misdeeds. The right insurance can provide security and peace of mind for both business owners and their customers. As always, make sure you shop around before committing to any bar or restaurant insurance. We hope you’ve found these thoughts on bar insurance helpful! Happy reading!