Benefits of a Comprehensive Restaurant Insurance Plan

One of the first concerns to investigate when you decide to open a business that serves food is restaurant insurance. You need to be aware of the many liabilities involved with running an operation where customers visit. Here are essential points to know concerning your liabilities and the comprehensive coverage you need for launching a restaurant.

Benefits of Different Coverages Under the Comprehensive Restaurant Insurance Plan

Here's how you can benefit from different restaurant insurance coverages:

1. General liability insurance

   A big part of restaurant insurance is general liability, which is common among all types of businesses. This coverage is crucial to pay for accidents or other mishaps that affect third parties at your establishment. You won't have to dip into your own pocket to pay for medical bills if someone is injured on your property.

   General liability coverage also provides financial protection for lawsuits, as it pays legal costs, including settlements. Some of the various risks that can lead to lawsuits include slander, libel, and copyright infringement. But general liability insurance alone will likely not cover all your risks, although it's a good starting point. Ultimately, you need to customize your policy to match your unique restaurant.

2. Liquor liability coverage

   If your restaurant serves alcohol, you will need not only a liquor license but liquor liability coverage as well. This insurance pays for damage caused by patrons who become intoxicated at your establishment. It also pays for medical bills if a drunk person injures another customer.

   Bartenders have a responsibility to resist serving customers who appear to have had too many drinks. If someone gets drunk at your establishment and then gets in a crash, the family of the victims can hold your restaurant liable. Liquor liability coverage pays for legal costs if someone tries to sue your business for reasons about the effects of alcohol sold at your venue.

   When a patron is injured by a drunk person at your establishment, they may sue your business for negligence. They may pile on criminal and civil damages if financial loss or bodily harm is significant. Even if your bouncers were just doing their job at handling a disruption, your business could still be held liable if they injure someone in the process.

3. Worker’s compensation

   All states have requirements for employers regarding workers’ compensation, which is insurance that pays for injuries that workers suffer on the job. Workers comp can involve extensive payouts, depending on the type of accident. It also pays employees a percentage of the money they would've earned working.

   One of the most common workers comp claims is when a worker trips and falls, then need to go to a hospital. Restaurants can mitigate this risk by routinely inspecting the kitchen floor to ensure it's not slippery. Reducing workplace risks can help lower workers’ comp costs.

4. Employment practices liability

   The term Employment Practices Liability Insurance (EPLI) should be on your radar if you plan to open a restaurant. This coverage pays for legal costs arising from employment issues, such as when an employee feels they are wrongfully terminated. EPLI also covers claims involving harassment and discrimination. The coverage further protects restaurant owners from complaints filed by non-employees.

Design a Customized Comprehensive Restaurant Insurance Plan with Fuller Insurance

It's best to discuss your business model with an insurance expert, who can then help you assess the different types of restaurant insurance you need. For more information on getting the right coverage plan for your restaurant, contact the experts at Fuller Insurance Agency. We are happy to help you craft the plan that best reflects your business needs.