While you may invest in proper safety measures as a restaurant owner, sometimes accidents can happen beyond your control. General liability restaurant insurance helps protect your business from unforeseen accidents and liabilities that could cause financial ruin. It can cover various issues such as bodily injury, property damage, liquor liability, and reputational problems. Here are seven reasons general liability insurance matters for restaurants:
Property Damage Protection
Accidents that result in property damage can happen even when precautions are taken. A waitress may accidentally spill a drink on a customer’s clothing or electronic device, causing damage. If you’re not insured, you’ll have to pay for the repair or replacement costs out of pocket. General liability restaurant insurance can help cover these expenses, saving you from potential bankruptcy.
Bodily Injury Coverage
Accidents that result in bodily injury are also common in the restaurant industry. A customer could slip and fall on a wet floor or get burned by hot food or beverages. Since you’re responsible for the safety of your customers on your premises, you may be held liable for any injuries they sustain. General liability insurance may help cover these costs and protect your business from financial loss.
Liquor Liability Support
If your restaurant serves alcohol, you face the risk of liquor liability. This type of liability refers to damages or injuries caused by an intoxicated individual who was served alcohol at your establishment. If a customer drinks too much at your bar and gets into a car accident on their way home, they may hold your restaurant liable for their injuries and damages. General liability insurance with a basic liquor liability provision can help cover legal fees, medical bills, and other expenses related to liquor liability claims. It covers restaurants that serve liquor now and then. If your establishment serves drinks daily, you may need a more comprehensive liquor liability policy.
Reputational Risk Coverage
Someone may sue your restaurant for alleged slander, discrimination, malicious prosecution, privacy violation, or libel. Even if it’s an unfounded accusation, you must defend your reputation in court. A privacy violation claim may arise if your waiter took a photo of a customer without consent. General liability restaurant insurance may protect your restaurant from such allegations and cover any legal fees or settlement costs.
Advertising Liability Assistance
While advertising is meant to promote your restaurant, sometimes it can land you in legal trouble. If your restaurant includes a celebrity’s photo on its website without their permission, they may sue you for the unauthorized use of their image. That’s because it implies an endorsement, and you’ll need to compensate them for using their likeness. Other forms of advertising liability include copyright infringement, misleading claims, and using a competitor’s slogan. General liability restaurant insurance with advertising liability coverage can help protect your business from such expenses.
Rental Property Damage Coverage
You may need to rent property from a third party, such as a kitchen or additional storage space. When you rent property, you’re legally responsible for damages that may occur while using it. If your restaurant uses a rented kitchen to prepare meals and accidentally starts a fire, the building owner may require you to cover the repair costs. Having rental property damage coverage in your general liability policy can help you avoid paying for these expenses out of pocket.
Peace of Mind
Running a restaurant business comes with its fair share of stress and worries. You must manage employees, deal with customer complaints, and keep the food quality up to par. Worrying about unforeseen accidents or lawsuits can add to your already heavy workload. General liability insurance for restaurants can give you peace of mind, knowing that your business is financially protected if the covered risks occur. It allows you to focus on running your business without worrying about what might happen.
Consider General Liability Restaurant Insurance
As a restaurant owner, you don’t want to overlook the importance of general liability insurance. It can provide protection and financial security for your business in case of unforeseen accidents or lawsuits. The right coverage can help you focus on creating delicious meals for your customers without worrying about potential risks that could harm your business. Find a reputable restaurant insurance provider to discuss your options and find the best coverage for your needs.