Published On: August 18, 2023

Restaurant insurance can include a combination of insurance policies to keep you, your property, and your employees covered. At Tabak Insurance, we offer restaurant-specific policies like property, liquor, and worker’s compensation insurance plans. Here are a few different policies to consider when insuring your restaurant: 

General Liability Policies

General liability insurance can cover third-party claims for bodily injuries, property damage, and personal injury. This can include when a customer slips on a wet floor, or a delivery person gets injured in your establishment. General liability policies may also help in cases like reputational risk, advertising liability, etc. This restaurant insurance policy provides coverage for legal expenses and medical costs.

Property Insurance

Property insurance can cover the physical assets of your restaurant, including the building, kitchen equipment, furniture, and inventory. This form of insurance safeguards these assets against a range of issues, such as fire, theft, vandalism, and natural disasters. Property insurance provides the financial support needed to repair or replace items. This can help you recover quickly in the event of loss or damage to your physical assets.

Workers Compensation Insurance

Workers’ compensation insurance covers medical expenses and lost wages for employees who are injured or fall ill on the job. It also shields your restaurant from potential legal claims by employees. This insurance can help protect you when a server slips while on the job or a chef gets badly burnt while cooking. 

Liquor Liability Policies 

For restaurants serving alcohol, liquor liability insurance is key, as state liquor laws can vary. This policy provides coverage in case a customer becomes intoxicated at your establishment and causes harm to themselves or others, and shields your restaurant from potential lawsuits related to alcohol-related incidents. Here are some reasons to consider liquor liability policies for your restaurant: 

State and Federal Legal Requirements

Many areas have strict laws and regulations regarding the service of alcohol onsite. Restaurants can be held legally responsible for the actions of patrons who become intoxicated on their premises. Patrons may also cause harm to themselves or others in your establishment if they’re under the influence. Liquor liability insurance helps with compliance with these legal requirements and provides coverage for potential legal claims. Research liquor laws in your state to make sure that you are covered adequately. 

Risk Management

Liquor liability insurance can be included in your overall risk management strategy. It adds a layer of protection to your restaurant’s financial well-being, allowing you to focus on providing service while reducing the potential impact of alcohol-related incidents.

Errors and Omissions Insurance (E&O)

If your restaurant provides catering, event planning, or other specialized services, consider errors and omissions (E&O) insurance. E&O insurance can protect you from claims of negligence or mistakes in delivering those services. Here are some of the areas that E&O insurance can help your restaurant: 

Catering and Special Services

Mistakes or oversights can occur, such as incorrect orders, late deliveries, or miscommunication issues with clients for catering or special events restaurants. These issues may result in a loss of income. E&O insurance can protect your restaurant from claims arising from errors in providing these specialized services.

Mistakes in managing reservations, bookings, and events can lead to dissatisfied customers and potential financial losses. E&O insurance can provide coverage if reservation scheduling or event planning errors result in customer dissatisfaction or financial claims.

Menu Accuracy

Accurate information about ingredients and potential allergens is a significant part the restaurant industry. If a customer suffers an allergic reaction due to misinformation about menu items, E&O insurance can help cover legal costs and potential damages. Following the appropriate procedure with an insurance claim can help protect your reputation.

Business Owners Policy (BOP)

A Business Owners Policy (BOP) insurance is a comprehensive insurance package designed to provide coverage for small and medium-sized businesses, including restaurants. BOP insurance combines several key coverages into a single policy, offering convenience and cost-efficiency. A BOP includes key coverages such as general liability, commercial property, and business interruption insurance.  

Directors and Officers Insurance (D&O)

D&O insurance is beneficial if your restaurant has a board of directors or officers. It provides coverage for legal expenses and damages resulting from claims of mismanagement. D&O protects executives in situations like an employee suing for wrongful termination. This policy helps safeguard your restaurant’s directors and officers from personal financial liability.

Restaurant Insurance and Tabak

Insuring a restaurant involves a comprehensive approach to risk management. By selecting individual insurance policies, you can protect yourself, your employees, and your property from a wide range of potential risks and liabilities. Consider state laws and regulations when choosing one or more insurance plans for your restaurant. At Tabak Insurance, we can help you pick and choose which policies your restaurant needs to succeed. Contact us today to learn more about restaurant insurance and our comprehensive packages.  

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