General liability insurance, also called commercial insurance, protects your business in the event of a third-party lawsuit. From liquor liability insurance policies to errors and omissions coverage, hospitality businesses have plenty of insurance options, but a general liability plan tops the list of must-haves. It is the most basic — and the most beneficial — insurance for bars, restaurants, nightclubs, and cafes.
Don’t Ignore This Beneficial Business Owner’s Policy
In this litigious day and age, businesses bear a heavy legal responsibility. Over the past few decades, lawsuits have proliferated, and rewards have skyrocketed. Some claims are valid while others are not. In either case, an effective legal defense can cost a fortune. One protracted lawsuit can easily bankrupt a small- to medium-sized establishment and the only way to minimize the risk and save your business from potential ruin is to have the right general business liability insurance policy. Your cafe, bar, or restaurant insurance policy should include general liability coverage.
The Businesses That Can Benefit From General Liability
Every business needs a general liability policy. Whether you work in an office or a boutique, whether you own a coffee shop or a tax consulting service, you should be covered in the event of a lawsuit. Having nightclub, bar, cafe, or restaurant insurance can make all the difference for your business. Insurance is particularly helpful for hospitality businesses that frequently:
- Host high volumes of customers.
- Handle property belonging to clients or customers.
- Operate in fast-paced, high-risk environments.
Serve food and drinks to customers.
Experience spills and falling objects (e.g., silverware, plates, etc.)
The Claims That General Liability Covers
As a key part of any well-rounded insurance portfolio, general liability plans cover claims related to physical injury, reputational harm, and property damage. While it doesn’t mitigate exposure to every potential risk, it does cover the basics, such as injuries, illnesses, and property damage resulting from business operations.
More specifically, general liability shields businesses from claims related to:
| Insurance Type | Description | Example |
|---|---|---|
| Bodily Injury | May protect your business if someone suffers or claims they suffer a bodily injury as a result of your products or services. | If someone slips and falls on a spilled drink, or if a patron gets hit with a falling plate. |
| Property Damage | May protect you if someone claims you or your employees damaged their personal property. | A waitress accidentally spills coffee on a customer’s laptop while serving them. |
| Rental Property Damage | May protect you if the property that you rent from a third party is damaged. | A fire damages a venue that you rented in order to host a party. |
| Reputational Risk | May protect you if someone sues you for libel, slander, malicious prosecution, false arrest, or privacy violations, etc. | An employee uses Twitter to disseminate false and damaging information about a competitor, and the other party sues. |
| Advertising Liability | May protect you if another party claims that you infringed on their copyrights or engaged in false or misleading advertising. | Another restaurant claims your logo is similar to theirs and subsequently sues you for copyright infringement. |
| Liquor Liability | Some policies include a basic liquor liability provision. Although not designed to deal with businesses that serve alcohol on a daily basis (for that, you need separate liquor liability insurance), it nonetheless may cover businesses who serve drinks every now and then. | Your business serves alcohol at a catered party and someone falls down after becoming inebriated. |
| Medical Payments | Helps cover the medical expenses of a personal injury case. | A court determines that you have to pay for an emergency room visit and hospital stay after someone hits their head on a low-lying ceiling beam in your restaurant. |
The Cost of General Liability Coverage
The cost of liability insurance depends on a number of factors, such as:
- The size of your business
- The type of business
- Where your business is located
- Your claims history
Your loss history
Basic liability coverage is typically affordable for the average small business owner. You can expect to pay anywhere between $200 and $1,000 per year, although the price can vary significantly based on the above factors and potential risks. If you would like to receive a more accurate figure for your business, fill out our questionnaire to get a fast and personalized general liability insurance quote.
Protect Your Business With General Liability Insurance
Protect your business and its assets with the right general liability coverage. Tabak Insurance Agency makes it easy to mount a proactive defense. We provide comprehensive insurance for bars, restaurants, and nightclubs at competitive rates. Whether you need commercial property insurance, workers’ compensation insurance, or a liquor liability insurance policy, we have you covered. With in-depth industry knowledge, as well as extensive risk exposure experience, we know how to provide the right coverage for every establishment at affordable rates. Contact us today to learn more about our general liability policies.
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