Running a restaurant or bar comes with its own liability risks. A guest slips on a wet floor, a server spills coffee on a customer’s laptop, or someone claims your ad used their photo without permission. General liability insurance coverage pays when a customer or other outsider says your business injured them or damaged their property. It covers your legal defense, medical bills and any settlement or judgment, up to your policy limits.

Tabak Insurance works only with hospitality businesses. We specialize in helping restaurants, bars, cafés, food trucks, and other hospitality businesses find general liability coverage designed for their specific risks. Contact us today to learn more about our general liability policies.

Do Restaurants or Bars Need General Liability Insurance?

In this litigious day and age, restaurants, bars, and other hospitality businesses bear significant legal responsibility. Over the past few decades, lawsuits have proliferated, and settlements 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 is to have the right general liability insurance.

Every restaurant or bar insurance policy should include general liability coverage to help protect against claims involving bodily injury, property damage, and advertising injury. For most hospitality businesses, general liability insurance serves as the foundation of a comprehensive insurance program, providing essential protection against many of the risks encountered in day-to-day operations.

General liability insurance can help protect you from expenses related to:

• Customer slip-and-fall accidents
• Damage to a customer’s property
• Third-party bodily injury claims
• Advertising injury claims

How Does General Liability Insurance Benefit Hospitality Businesses?

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 food service or hospitality business. Many bar insurance and restaurant insurance policies bundle general liability with other key protections to cover the high-traffic nature of these establishments. Insurance is particularly helpful for hospitality businesses that frequently:

What General Liability Insurance Covers

Whether you own a full-service restaurant, café, quick-service restaurant, food truck, or fine dining establishment, having adequate liability protection is an essential part of managing business risk.

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:

Alcohol claims are the biggest gap for hospitality businesses. General liability excludes them for any business that sells or serves alcohol, so you need liquor liability insurance. Our article on liquor liability vs. general liability explains the difference. General liability also does not cover:

• Injuries to your own employees, which fall under workers’ compensation
• Damage to your own building, equipment or inventory, which falls under commercial property insurance
• Accidents in vehicles you drive for the business
• Fights, in many policies, unless assault and battery coverage is added

Many hospitality businesses carry $1 million per occurrence and $2 million in total per policy year. Your lease or loan may set a higher minimum. If you need more, an umbrella policy adds limits on top. Many restaurants also bundle general liability with property insurance in a business owner’s policy.

Landlords, shopping centers and event venues often ask to be named as an additional insured and want a certificate of insurance before you open or set up. Our team handles these requests for our clients, so you can send proof of coverage when a venue asks for it.

The cost of liability insurance depends on a number of factors, such as:

Basic general 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.

What Are the Benefits of Comprehensive Insurance Coverage?

Obtaining comprehensive bar insurance and restaurant insurance offers various benefits for business owners. Along with providing financial coverage if a customer files a claim against your business, general liability insurance helps protect your business from the operational and financial impact of lawsuits and third-party injury or property damage claims. Costly claims may require companies to shut down or pause business operations temporarily. Comprehensive insurance coverage will provide financial protection, allowing you to continue your operations as normal. To supplement your general liability coverage, evaluate the benefits of liquor liability insurance, errors and omissions insurance, and more.

Who We Write General Liability For

Patios, live music, valet parking, catering jobs and delivery all change your general liability exposure. Tell us how your business runs when you quote, so the policy matches what you actually do. We insure restaurants, bars, nightclubs, food trucks, coffee shops, caterers, hotels and motels.

Protect Your Hospitality Business With General Liability Insurance

Protect your hospitality business and its assets with the right general liability coverage. Tabak Insurance Agency provides 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 and extensive experience with risk exposure in the hospitality industry, 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.

What is typically not covered by general liability insurance?

General liability does not cover employee injuries, damage to your own property, business auto accidents or professional mistakes. For restaurants and bars, it also excludes most alcohol-related claims, and many policies limit fights unless assault and battery coverage is added.

Does general liability cover food poisoning?

Usually, yes. A customer who says your food made them sick is typically covered under the products and completed operations part of a general liability policy. Check your policy for any food contamination exclusions.

Is general liability insurance required for a restaurant?

State law usually does not require it, but most landlords, lenders and event venues do. Many leases name a minimum limit and ask to be listed as an additional insured.

Do I need liquor liability if I have general liability?

Yes, if you sell or serve alcohol. General liability excludes alcohol-related claims for businesses that serve or sell alcohol, so restaurants and bars need a separate liquor liability policy or endorsement.

What Our General Liability Insurance Clients are Saying

Discover more tips and tricks to help you make the most of your bar or restaurant insurance coverage.