It can be hard to run a restaurant or other food and beverage business. The company must also deal with hazards that come with running a business, such as a kitchen fire and staff and customer injuries from accidents, among other things.
Due to this, purchasing restaurant insurance can be a great method to allay the worries that the majority of restaurant owners have.
Restaurant insurance is necessary for businesses that prepare and serve food and beverages. The various business kinds include:
- Pubs, taverns, and sports bars
- Coffeehouses and cafés
- Drive-through restaurants and diners
- Sandwich shops and delis
- Deliveries of food
- Franchises for fast food
- Couches
- Pizza parlours
These food and beverage businesses have particular risks that are covered by various insurance premiums.
General Liability Insurance for Risks in the Restaurant Industry
The first coverage that owners of food and beverage businesses typically get for their company is general liability insurance.
This is because the majority of commercial leases for restaurants need it. However, the advantage is that it shields your company from litigation, mishaps, and oversights that may otherwise cause financial harm.
A general liability insurance policy covers liabilities for:
Client injuries
A food or beverage business has a higher risk of accidents. General liability insurance can cover everything from an ambulance journey to the cost of a lawsuit if a consumer is injured on your property.
Insurance for general liability includes:
- Defense expenses
- Medical expenses
- Court of Appeal decisions
- Funeral expenses resulting from tragic accidents
Remember that General Liability does protect your staff. You need workers’ compensation insurance to protect your team.
Damage to customer property
When client property is harmed, general liability insurance safeguards you. (For instance, if a waitress spills a beverage on a customer’s laptop).
Your food service company might be protected against events that happen off-site by general liability insurance. An example, using a food warmer that unintentionally creates a
fire and causes property damage.
Host alcohol liability
Accidents at a bar or restaurant that frequently serves alcoholic beverages are not covered by general liability insurance. However, host liquor liability insurance is a part of general liability insurance. This insurance covers physical harm and property damage brought on by alcoholic beverages served at social gatherings where your firm sells alcoholic beverages or at other events unrelated to business profitability.
Advertising Injuries
You may believe that the advertising for your restaurant is secure, but general liability insurance will pay for accidental “advertising injuries” if you unintentionally use a competitor’s phrase as part of your own. It provides coverage for:
- Infringements on intellectual property
- Slander and written libel are both forms of verbal defamation.
Make sure your insurance covers this if you employ advertising or promotional materials to draw clients to your restaurant, food truck, catering business, or other food service business.
Combining general liability and commercial property
You might be able to combine general liability insurance with commercial property insurance in a business owner’s policy if your restaurant, bakery, or other food business is reasonably modest and low-risk (BOP).
You can increase the protection of your general liability policy or BOP by including additional coverage, such as:
- Liability insurance for alcohol
- Insurance for business interruption
- Cyber liability protection
To comply with state regulations or be granted a liquor licence, bars and other establishments that serve alcohol will need liquor liability insurance.
Benefits Of General Liability Insurance
The top five advantages of getting general liability insurance are as follows:
1: Protection against the unexpected
Let’s examine the general liability insurance policy’s most obvious advantage. It safeguards you from the unforeseen. Accidents do happen, despite your best efforts to fix every area of operation. You may rest easy knowing you are protected in the case of an unexpected incident by making sure you have adequate coverage.
2: You may be able to complete larger contracts.
Having general liability insurance coverage in place may assist you in winning more contracts if you frequently submit bids for large contracts.
3: you may be protected against a data breach.
Data security is of the utmost significance. Having a general liability insurance policy is crucial if your business maintains customer records that include names, addresses, and social security numbers regularly.
4: Injury claims are nothing to be afraid of
Regular face-to-face meetings with clients, whether at your office or theirs, improve the likelihood that a damage claim will be made.
5: Protection from staff or employee actions
It can be challenging to prevent employee or staff activities even though you probably want to keep the best employees possible. This includes minor offences like slander as well as more serious ones like an accident involving injuries or property damage. In some circumstances, your general liability insurance policy may provide coverage for these kinds of third-party claims.
To sum up
Every restaurateur should buy commercial general liability insurance to protect themselves from typical claims made by their customers, such as injuries from falls, etc. The policy provides you with protection from claims of bodily harm or other losses for which your company might be held accountable.
