Restaurant Insurance Information
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Restaurant/bar and tavern owners have much to consider when designing their insurance portfolios. Here are just a few of the insurance options restaurateurs can pick from to help minimize their financial risk from lawsuits, failed equipment and property losses.
- Property insurance: Offers financial protection in the event that the restaurant’s property (either its building structure or contents) is ruined or damaged in an insurable event such as a fire or theft.
- Spoilage coverage: Provides payment if power is lost or equipment malfunctions and the perishable food on hand spoils.
- Employment practices liability: Protects against lawsuits for various employee complaints including discrimination, provided the treatment was not willful.
- Equipment breakdown: Covers the cost of repair for equipment that has broken down including cookers, refrigerators, and air conditioning units. It's worthwhile to note that if the breakdown occurs due to lack of proper maintenance, the claim may not be covered.
- Workers compensation insurance: This pays for medical expenses and some lost wages should an employee be injured on the job.
- Business continuation insurance: Provides ongoing income in the event that your business is forced to shut down. Alternatively, it could pay for some of the expenses of temporary relocation of your restaurant.
- Liquor legal liability insurance: This can help pay legal expenses and claims brought on by customers who may be injured by an individual who was drinking in your establishment.
Restaurants may also be able to secure all-in-one coverage, which is a comprehensive policy that is tailored to the many facets of risks that restaurant owners face.
What Is Liquor Liability Insurance?
“Dream Shop” laws (a law that makes a business liable if they serve a patron who is clearly intoxicated) exist in forty-three states (including Colorado) and make it even easier for you to be sued after one of your overserved patrons causes harm to someone else. You could have trouble if patrons get into a physical altercation on your property or at your event after drinking on site; you could be sued by one or both parties if injuries have occurred.
Any business that sells or serves alcoholic beverages, including restaurants, nightclubs, and bars, can be held liable for damages or injuries caused by intoxicated patrons. This can include damages that result from fights, careless behavior or even automobile accidents. While it may seem logical to place the blame fully on the individual who perpetrated these acts, the establishments that allowed them to become intoxicated are also held largely liable and can be sued for exorbitant sums of money, particularly if resultant injuries are severe or fatal.
How Much Does Liquor Liability Insurance Cost?
The cost of this policy will depend on your business size, the amount of protection you want and any state required limits you’ll need to meet. The best way to to get a true idea of cost is to get a quote specifically for your business and to review it carefully to make sure all of your concerns are truly covered. We can walk you through it all with no obligation.
If you would like more information on how we can specifically help you, check out our posts on the industry here.
Check out our components of Bar/Restaurant insurance blog series:
Part 1 - General Liability Insurance
Part 2 - Liquor Liability Insurance
Part 3 - Property Insurance
Part 4 - Workers Compensation Insurance
Part 5 - Business Income Coverage
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