Published On: April 29, 2024

Restaurant insurance is a type of insurance specifically designed to meet restaurant-specific needs. It covers risks that many restaurants encounter, such as liquor-related incidents, slips and falls, and equipment breakdowns. Customizing your restaurant insurance to cover your business in these scenarios helps you avoid financial losses and potential liabilities.

Types of Restaurant Insurance Coverage

Restaurant insurance is often comprised of multiple different insurance policies. This protects your business from a wide range of events and incidents. Tabak Insurance offers the following types of restaurant insurance policies:

General Liability Insurance

General liability insurance is a basic insurance policy that is often required by law for commercial food establishments. This insurance protects your restaurant from third-party claims regarding injuries or property damage resulting from your services, operations, or products. The policy covers incidents like a server spilling a hot drink on a customer’s laptop or a customer slipping and falling on your property. General liability insurance includes coverage for medical expenses, property damage, and legal fees.

Liquor Liability Insurance

Many states require liquor liability insurance before your business can obtain a liquor license. Liquor liability insurance protects your restaurant from being held liable for the actions of intoxicated individuals. Without it, you could be held legally and financially responsible for injuries or property damage caused by drunk customers, including drunk driving accidents or alcohol-related fights or assaults. Liquor liability coverage protects you against these losses and damages by covering claims or lawsuits resulting from these incidents.

Commercial Property Insurance

Commercial property insurance covers the physical assets of your business, including your equipment, building, furniture, and inventory. Most policies cover losses caused by natural disasters, equipment breakdowns, criminal activity, accidents, and spoilage. The insurance coverage can help pay for repairs and replacement costs. We are able to customize your commercial property insurance by choosing a named perils or open perils package. Named perils coverage insures you against a list of perils that are explicitly named, while open perils coverage insures you against all events as long as they weren’t specifically excluded.

Workers’ Compensation

Workers’ compensation insurance protects both your business and your employees from work-related injuries and illnesses. It covers lost wages, medical expenses, and rehabilitation costs for the employee and protects your business from negligence lawsuits. Every state has a set of workers’ compensation laws, so coverage may be a requirement in order to hire and retain employees. 

Business Owners Policy (BOP)

A business owner’s policy contains all of the necessary restaurant insurance types, oftentimes at a reduced rate. A BOP is a comprehensive package that includes general liability, commercial property, and business interruption insurance. Business interruption insurance protects your business if you are unable to operate, resulting in a loss of income. It can cover rent or lease payments, relocation costs, and employee wages until your business is able to operate again. The professionals at Tabak Insurance help you choose a BOP package that aligns with your budget and grows with your business.

Directors and Officers (D&O)

Directors and officers insurance protects your business and other owners if an executive is sued for wrongdoing. This can include breaches of fiduciary duty, reporting errors, failure to comply with regulations, and more. The insurance usually covers settlements, financial losses, and legal fees.

Errors and Omissions (E&O)

Errors and omissions insurance protects your business against negligence claims and claims of loss due to professional error. Incidents that could be covered under this type of insurance include a catering company failing to perform as promised or serving a customer an allergen that causes a reaction. An E&O policy can help cover legal fees and settlements in these types of situations.

Factors that Affect the Cost of Restaurant Insurance

We do what we can to provide you with comprehensive coverage at the most cost-effective rate possible. The cost of your insurance coverage depends on multiple different factors. Our professionals start by looking at the type, size, and location of your restaurant. Factors such as higher occupancy limits and increased crime rates in your area can point to increased risks, which may affect the cost of your coverage. Your bar’s claim history may also affect the cost of your insurance. You can take certain steps to mitigate risks yourself and lower policy costs. Installing security systems, implementing rigorous employee training, and maintaining your restaurant and premises can reduce risk and potentially lower costs.

Customize Your Restaurant Insurance With Tabak Insurance

One of the best ways to make sure a variety of events and incidents fully covers you is to customize your insurance. The professionals at Tabak Insurance are able to identify the best coverage for your business based on factors like the type of restaurant you own, your location, and your risk history. Fill out our questionnaire today to get a quote within 24 hours or less.

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