Owning a tavern or restaurant makes you responsible for the safety of your staff and customers. An insurance policy can help shield you and your business from liabilities in cases of injuries to these parties. Here are the types of coverage that are included in standard restaurant insurance:
Errors and Omissions (E&O) Insurance
E&O insurance helps protect commercial restaurant business owners against liabilities that arise when customers claim negligence. The coverage caters to the expenses you may incur due to unintentional mistakes or omissions in service delivery. If you sell restaurant supplies, this policy can help compensate clients who purchase defective products unknowingly.
Developers of Point of Sale (POS) software for restaurants also need professional liability insurance. The policy covers these salespeople against claims by clients who buy software lacking features like inventory management and customer support. Other mistakes this restaurant insurance may cover include wrong billing instructions, customer harassment by your staff, or failed reservations.
General Liability or Commercial Insurance
Commercial insurance caters to the legal fees an attorney charges to represent a business against the clients’ or staff’s lawsuits. This plan minimizes financial stress during legal processes and allows you to focus on running your business. Bars with many customers require general liability because of the high risks of client injuries due to accidents or assaults.
This plan can also cover your customers’ medical bills due to slip or fall accidents or food poisoning. The coverage may also compensate your customers after your staff accidentally damages their belongings. General liability offers protection if your employees post false information about other bars or restaurants in your target market.
Workers’ Compensation Insurance
Worker’s liability insurance helps compensate waiters and other staff after they sustain injuries while on the job. This plan may protect your employees against burns, slips and falls, object injuries, and other related work risks. The coverage enables food service businesses to cover the staff’s medical expenses and offer disability benefits. Buying this plan shows that you value your waitstaff’s safety, which may motivate them to perform better.
Liquor Liability Insurance
Customers in your tavern may engage in fights and damage your property after getting drunk. They can also assault your employees and subject you to some liabilities. Liquor liability coverage protects bar owners and workers against risks induced by alcoholic beverages. This policy also caters to legal fines or penalties charged to nightclubs or taverns for selling alcohol to visibly intoxicated customers.
Directors and Officers (D&O) Liability Insurance
Successful hospitality venues buy D&O coverage to protect their executive officers from legal actions when accused of misconduct. An example is when a worker sues a director for wrongly terminating their contract. This policy doesn’t protect an employer or director from illegalities like engaging in price-fixing. The insurance also can’t cover tavern directors who consume alcohol, get intoxicated, and harm the staff.
Buy Bar and Restaurant Insurance Today
Comprehensive coverage for a hospitality venue offers protection against staff injuries, property damage, and liability claims. Restaurant insurance includes terms or features restaurant owners should understand like deductibles, agreed value, and general aggregate. Contact a reputable insurance agency to purchase coverage for your restaurants or taverns.
