Published On: January 27, 2025

Owning a restaurant is a significant investment that comes with operational risks. Owners are responsible for employee and patron welfare, including keeping the premises safe. Tabak Insurance offers restaurant insurance to help protect against financial loss in case unforeseen accidents occur. Here are some things restaurant insurance covers:

General Liability

General liability insurance protects restaurants in the case of a third-party lawsuit. It often covers cases involving:

  • Damage to a customer’s property
  • Libel or slander
  • Negligence like slips and falls
  • Customer injury, including medical fees
  • Food-borne illnesses

General liability policies help restaurant owners meet legal costs without pulling funds from the restaurant accounts. This protects against bankruptcy and safeguards business investments. General liability may be required for food service businesses that rent their building.

Liquor Liability

Liquor liability insurance protects bars and restaurants from being held responsible for the actions of intoxicated patrons. If an intoxicated patron damages another customer’s property or causes physical harm, a restaurant may be required to provide financial compensation. Liquor liability policies cover legal fees, settlement payouts, and medical bills. This reduces a restaurant owner’s out-of-pocket costs, helping to keep the business open. For establishments that serve alcohol regularly, liquor coverage is usually required.

Property Insurance

Commercial property insurance usually covers damage to the restaurant’s property, including weather damage, broken equipment, and vandalism. Our property insurance policies are customizable, and owners can select named or open perils. Named perils cover specific risks, such as flooding, fires, or spoiled stock. Open perils cover all risks unless they are explicitly excluded from the policy. This allows restaurant owners to gain protection for their likeliest source of risk.

At Tabak Insurance, our property insurance policies can compensate owners for building repairs, kitchen equipment replacement, and damaged inventory. Some policies also reimburse restaurant owners for payroll and operating expenses lost during periods of repair. This helps owners maintain business savings and meet obligations to staff and customers.

Workers’ Compensation

Restaurant insurance policies often include workers’ compensation. This provides employees with financial compensation for injuries or illnesses that occurred on the job. It covers medical costs and lost wages and is required by many states. Workers’ compensation policies also safeguard restaurants against personal injury lawsuits, helping protect the business’s reputation.

Errors and Omissions

An errors and omissions (E&O) policy protects against financial losses caused by professional errors. This policy focuses on claims related to inadequate services, product misrepresentation, or unfair business agreements. A restaurant may benefit from E&O insurance if it offers catering services or rents its event space. Customer complaints, such as food that does not arrive on time and hot to a catered event or less event seating than promised, can be managed through refund policies. E&O insurance helps cover this lost profit.

Get Restaurant Insurance Today

Restaurant insurance helps protect business investments during unexpected events, such as power outages, miscommunication, and employee accidents. Tabak Insurance offers a business owners’ policy that contains key coverage types in a single policy. This makes it easy to navigate claims as they arise. Contact us today to learn more about insurance coverage for restaurants.

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