Published On: November 16, 2023

Restaurants can use insurance to protect their business, customers, and employees. Restaurant insurance can reduce the risk of lawsuits and prevent significant financial losses. This coverage can help you mitigate risks and remain open if something happens. If you own or run a restaurant, there are a few types of insurance that you must have to achieve comprehensive protection from various potential risks:

General Liability Insurance

General liability insurance may be the most beneficial restaurant insurance for your business. It protects your business from third-party lawsuits relating to bodily injury claims, property damage, liquor liability, medical payments, and more. Comprehensive general liability insurance can protect your business from lawsuits that could be damaging to your restaurant. It allows you to host high volumes of customers and serve them without worrying about expensive accidents. General liability insurance can also help protect your reputation and, depending on the size of your business and other factors, is generally affordable.

Liquor Liability Insurance

If your restaurant serves alcohol, liquor liability insurance can help protect your business from alcohol-related incidents and liabilities. Many states have “dram laws” that hold companies liable for incidents caused by intoxicated customers, which is why this type of insurance is heavily recommended and usually legally required. This protection can protect you from bodily injury claims and property damage claims. Liquor liability insurance can help cover legal fees, medical bills, repairs, and settlement payout. Liquor liability insurance can give you peace of mind while serving alcohol and protect your business from risks brought on by intoxicated customers.

Worker’s Compensation

Worker’s compensation insurance covers medical expenses and lost wages if an employee is injured or becomes ill while working. Restaurant employees can suffer injuries from slips and falls, malfunctions, or handling heavy equipment or hot food. The insurance covers medical tests, hospitalization, and lost wages while the employee recovers. If the employee cannot work for an extended time, worker’s compensation can also include disability pay. Every state has worker’s compensation laws, but the specific requirements can vary from state to state. Our insurance professionals can help you choose a policy that meets your state’s requirements. 

Property Insurance

Property insurance protects your restaurant from damage to its physical assets, including the building, equipment, furnishings, and inventory. It protects you from natural disasters, equipment breakdowns, criminal activity, accidents, and spoilage. Whether an individual or a natural disaster caused the damage, property insurance can help cover the costs. The insurance covers the building itself, your business property, your inventory, and business interruption. This means the insurance can reimburse you for business expenses incurred while completing repairs. Property insurance can prevent bankruptcy from property damage and allow you to return to business after completing repairs.

Errors and Omissions (E&O)

Errors and omissions insurance protects your business from claims of negligence or loss due to an error or omission. When a customer feels that your restaurant was negligent, advertised inaccurate products or results, or was otherwise misrepresented, an Errors and Omissions policy can protect you from their claims. Your reimbursement may be determined by lost revenue or lost investment. This type of insurance can help protect your reputation, as these claims can harm your restaurant’s public image.

Business Owners Policy (BOP)

Business owner’s policy insurance is a package that includes general liability insurance, commercial property insurance, and business interruption insurance. This coverage can protect you from third-party lawsuits, protect your property and possessions, and provide reimbursement when your business is not operating. You receive the same coverage outlined in the sections about these separate insurances. There are various BOP options, and our experts can help you create a policy that fits your business and budget. As your company grows, we can adjust your insurance to meet your needs.

Directors and Officers (D&O)

Directors and Officers insurance protects your board of directors or other high-profile officers from individual liability if they are accused of not meeting their legal responsibilities. This can include misconduct or other wrongful acts, such as wrongfully terminating an employee. This insurance protects your directors and officers, but it also protects your business as a whole. It allows directors to feel comfortable that they will not experience personal financial losses, which can encourage them to stay in the company. If they decide to leave, this coverage can make the job position more appealing.

Tabak Insurance Provides Comprehensive Restaurant Insurance

Restaurant insurance can help mitigate risks and protect your business. It can protect you from expensive legal expenses and reputational damage. At Tabak Insurance, we can help you determine the type of protection and coverage you need. We offer a variety of insurance packages, and we can create a custom protection program that works for you. We currently serve 26 states across the country. Fill out our questionnaire today to receive an online quote and get covered in 24 hours or less.

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