In the United States, restaurants are required to purchase worker’s compensation, unemployment and automobile liability insurance. However, the insurance needs of most restaurants go beyond what is required by law. If you own a restaurant, you may wish to consider purchasing general liability, property and liquor liability policies for your business.
General Liability
General liability policies are designed to fill in the gaps that other specific liability policies do not cover. For restaurants, the main application is protecting you from damages you may be liable for due to an injury that happens on your property. General liability policies may also cover liability from lawsuits for copyright infringement or damaged reputation, for damage to another person’s property or for a foodborne illness that results from your business operation. A liability insurance in peoria az professional can assist you with selecting the policy that best fits your needs.
Property
Property insurance covers equipment, furniture, buildings, supplies and other property. The perils property insurance policies cover varies from policy to policy. Common perils include damage from fire, wind, water, lightning and earthquake. Some companies offer business owners policies that combine both property and general liability coverage. Some policies cover contents only, for restaurant owners who own the contents, but not the building their business is located in.
Liquor Liability
If your restaurant serves alcohol, you may want to consider specific coverage for liquor liability. This coverage protects you if your business is determined to be liable for an intoxicated customer who commits a crime, injures or kills someone or damages property after drinking alcohol at your establishment. Depending on the laws in your state, you may be required to purchase this coverage.
Whichever types of insurance you opt to purchase, it may be wise to consult with an insurance professional to make sure all your insurance needs have been addressed and that your policies do not unnecessarily duplicate coverages. The proper insurance coverage for your restaurant can be the difference between staying open and shutting your doors if your business faces a large financial loss.
