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Facts About Restaurant and Bar Insurance You Didn’t Know

Facts About Restaurant and Bar Insurance You Didn't Know

If you are a restaurant or bar owner, you should know the facts about restaurant and bar insurance. You should know about liquor liability and general liability coverage, as well as commercial auto insurance and employment practices coverage. Knowing these facts will help you make informed decisions about the types of insurance you need.

General Liability

General liability insurance is a must for any hospitality business. It protects your business against third-party lawsuits and can cover various expenses, including attorneys’ fees and court costs. It also pays for any settlements or court-ordered judgments. Some policies even cover injuries sustained by customers and property damage.

General liability insurance covers a range of issues related to the operation of a restaurant, including claims involving food poisoning, slip-and-fall accidents, libel, slander, and other issues. It also covers medical costs if a customer is injured on your premises.

This type of coverage also protects your restaurant’s equipment and inventory. Obtaining a policy for your restaurant and bar requires you to work with a licensed insurance agent. Insurance agents can help you get the best possible rates on this type of insurance. 

Liquor Liability

If you own a bar or restaurant, you should consider purchasing liquor liability insurance from a company such as Mountain Insurance to protect yourself from any lawsuits arising from the sale of alcoholic beverages. This coverage covers your business against lawsuits from intoxicated patrons who may cause damage to property or personal injury.

It will also cover medical expenses for patrons who sustain injuries from consuming alcoholic beverages. There are several ways to get liquor liability insurance for your business. One way is to contact an independent insurance agent. You can ask the agent about specific options for your type of business and alcohol service. Some agents can even tailor your coverage to meet your needs.

Another reason why liquor liability insurance is vital for your business is because of the high risk of alcohol-related accidents. If your establishment has a high liability rate, you may find that your business may need help to pay for damages. 

Commercial Auto Insurance

Restaurant and bar businesses have unique liability and property insurance needs. To protect themselves against these risks, restaurant owners should consider purchasing an insurance policy that includes business interruption coverage.

The cost of business interruption insurance may be higher than general liability coverage, but it may be cheaper than purchasing separate coverage for each business. In addition, many states require businesses to carry liquor liability insurance.

Besides liability insurance, restaurant and bar owners should also consider purchasing property insurance to protect their business’s assets, including inventory and furniture. It can also cover the replacement costs for spoiled inventory. This type of insurance is highly beneficial for restaurant owners who use their vehicles for various purposes.

Commercial auto insurance for restaurant and bar businesses is necessary for businesses transporting food. In addition to general liability insurance, restaurant owners should also have workers’ compensation coverage. The restaurant industry is prone to lawsuits and property damage, which makes it essential to protect your business. 

Employment Practices Coverage

Employer practices liability insurance can help protect you from lawsuits related to wrongful termination, discrimination, sexual harassment, and other forms of misconduct. These types of lawsuits are becoming increasingly common and expensive if you need the appropriate insurance coverage.

This type of insurance is significant for small and medium-sized businesses as they typically need a comprehensive employee handbook or a large budget for legal expenses. You can contact an insurance advisor if you need clarification on whether you need Employment Practices Liability Insurance.

They’ll help you determine the best coverage for your business and budget. These companies can also help you determine the coverage you need based on your company’s size, industry, and risk profile.

Although some restaurateurs consider themselves immune from employment practices liability, you should still ensure you have the coverage you need. This coverage will cover your property and contents and any damage to the building or equipment. 

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