Whether your business serves food or alcohol, you know that something could go wrong. A team member can burn their hands. There is a possibility that a fire could break out in the kitchen and damage some of your equipment.
There are certain risks that restaurant and bar owners face that can cause significant financial loss. You can minimize accidents and lawsuits by having restaurant and bar insurance while protecting your employees and investments.
Some assets estimate that the common annual top rate for eating place coverage is between $2,000 and $8,000. Despite that, your insurance cost will vary depending on your location, your space, and other factors. You should also consider the types of coverage you want and the limits of that coverage. There isn’t a universal insurance policy that can cover every aspect of the restaurant business because it is so diverse. Here are the top most important insurance policies you should know:
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Assault & Battery Insurance
Assault and battery claims can occur in restaurants, despite being generally relaxed places where patrons can enjoy food, drink, and conversation. An assault and battery policy protects your business if a patron is injured during a physical conflict at your restaurant.
General Liability Insurance
General liability insurance is often the first choice of insurance coverage for bar businesses in many states. A general liability insurance policy protects you when your bar or tavern suffers damage as part of normal business operations.
Workers’ Compensation Insurance
In most states, bars are required to carry workers’ compensation insurance. Legal requirements make this one of bar owners’ most popular insurance policies.
As part of normal business operations, your employees may suffer injuries and minor accidents covered by your workers’ compensation policy. With this coverage, employees can recover some of their lost wages and have their medical expenses covered if they suffer an occupational injury.
Product Liability Insurance
It covers your business if a customer becomes ill after eating your food. For example, a customer may suffer from food poisoning after consuming undercooked meat.
Why Is Restaurant Insurance Important?
If you own a restaurant, chances are it is your primary (or sole) source of income. Consider the following event, which resulted in the restaurant being forced to close or sued: Could you make ends meet? If so, how long will it last?
With the right business insurance, you can recover financially from a calamity, such as a fire that destroys your business. Furthermore, restaurant insurance provides funds to keep your business afloat if you are sued.
Restaurants, pubs, and bars require insurance to run and protect their operations, just as any other business does. Whether slips and falls or classic bar fights, businesses in this industry need to know where they stand regarding legal liability protection. Restaurant and bar insurance covers a wide range of liabilities, such as drunk driving accidents, assaults by intoxicated people, food-borne illnesses resulting from your bar, false advertising, burglary, and civil disturbances.