Liability insurance is a requirement for all bars and restaurants. Particularly in situations involving alcohol, anything can happen. Unknowingly serving a youngster with a fraudulent ID, having a client trip and fall, cooking mishaps, or serving somebody alcohol who drives home and causes an accident are all possibilities. You and your company may be held liable for any injuries or losses that result from one or more of these instances. In the event that an aggrieved party brings a claim and is awarded a sizable settlement or judgment, the financial repercussions could be disastrous for you. Hence, bars and restaurants are unique and should not be insured like other businesses.
Outlined below are some of the insurance packages that bar owners and restauranteurs can choose from in order to significantly lower their financial risk from litigation, equipment failure, and property damages:
- General Liability Insurance: If a client gets hurt while visiting your restaurant or bar or on any of its exterior properties, such as the parking lot, this insurance policy will provide coverage for bodily injuries and property damages. If your business provides risky entertainment options like mechanical bulls, you might need to buy a separate rider. Typically, general liability coverage is not included in bar insurance policies if a customer receives an injury while under the influence of alcohol after being served in your business. You will need to purchase liquor liability insurance for this purpose.
- Liquor Liability Insurance: This type of insurance specifically addresses property damage or bodily harm brought on by customers who have been severely intoxicated at your establishment. Moreover, since there is an increased chance of violence and assault when alcohol is served excessively on your premises, you will need supplemental assault and battery liability insurance, as liquor liability insurance policies typically do not cover injuries sustained in fights and other forms of violence.
- Assault and Battery Liability Insurance: If it can be proven that you failed to offer a safe atmosphere for your clients, you can be held accountable in case a fight breaks out in your business. Therefore, several instances of assault and battery claims against you can be avoided by recruiting security guards and bouncers.
- Workers’ Compensation Insurance: The majority of the States mandate workers' compensation for restaurants and bars with staff. Additionally, it guards against expenditures associated with work-related accidents that health insurance could refuse to cover.
- Commercial Auto Insurance: In the event that your business car is involved in an accident, this policy will pay for medical expenses and property damage. It is a requirement in many states for automobiles owned by businesses.
- Garage-keepers Liability Insurance: This is usually only needed if your restaurant or bar offers a valet service. It covers the damages done to customers' cars when they are under your care.
- Product Liability Insurance: You could be held responsible for any medical expenses and other associated charges if the food or alcohol you are selling to customers is contaminated in any way and makes them ill. You will be covered by this insurance for such kinds of claims.
- Revenue generated by the business
- Deductibles and policy limits
- The type of insurance that is purchased
- The type of services that are offered
- Business property and equipment