Why Restaurant Owners Need Comprehensive Insurance

Restaurants serve an important purpose in society. They allow people to go out and spend time with their loved ones while enjoying great food. As a restaurant owner, it’s important to learn about some of the potential liability risks you may be exposed to. Obtaining a strong restaurant insurance plan can help take some of the pressure off.

Here’s an overview of the different benefits of restaurant insurance.

  1. Protects Your Employees

    Your employees are an important part of your restaurant’s success. Offering strong workers’ compensation benefits can help your business attract top talent. Workers’ compensation protects your business against potential legal action if a workplace incident occurs. Workers’ compensation helps cover your employee’s medical care if they sustain an injury on the job.

    In addition to covering your employee’s treatment and rehabilitation, workers’ compensation also covers your employee’s lost wages if they are unable to work for an extended period of time. Proper Safety training and performing regular maintenance can help minimize your workplace risks. Maintaining a safe work environment should help lower your workers’ compensation rates.

  2. Provides Basic Liability Coverage

    General liability insurance is a mandatory part of your restaurant insurance plan. You’ll need this coverage in order to legally operate your business. Restaurants are often unpredictable environments due to the amount of traffic in the area. General liability insurance covers your business if a patron is accidentally injured or if your business is responsible for property damage.

    General liability insurance protects your assets by covering the injured party’s medical bills and handling potential repair or replacement costs. General liability insurance also helps cover your legal bills if the impacted party decides to sue you. The policy may also cover your business against allegations of libel and slander. It’s recommended that you consider looking over your policy carefully to see if you need to add extra liability coverage. Every restaurant deals with unique risks.

  3. Protects Your Business from Legal Damages

    Employment Practices Liability Insurance covers your business in similar ways to workers’ compensation. EPLI helps cover your legal fees if one of your employees alleges workplace harassment. They may also pursue legal action if they believe that they have been wrongfully terminated. Your business is also protected against allegations made by non-employees.

  4. Saves Your Restaurant in Case of Major Damages

    As previously noted, your basic liability insurance may not be enough to cover your business in the event that you are dealing with a serious liability dispute. Umbrella insurance steps in to cover you if the total damages exceed your liability limits. Umbrella insurance may save your business by assisting with expensive medical bills that you’d be forced to pay out of your own assets.

  5. Covers Liquor Liabilities of Your Restaurant

    Perhaps your restaurant serves alcohol. Liquor liability coverage is an important part of your restaurant insurance plan because it covers you if an intoxicated patron injures someone or damages property. It’s recommended that you train your employees to look for clear signs when a patron may be intoxicated so that you can avoid serving them a drink. In the unfortunate event that something goes wrong, liquor liability insurance helps cover legal fees, medical bills, and repair costs. Be aware that multiple liquor liability disputes may result in your restaurant losing its liquor license.

Protect Your Restaurant Business with RMS Insurance Brokerage 

Owning a restaurant leaves you vulnerable to several risks. However, obtaining a strong restaurant insurance plan gives you a safety net if something goes wrong. If you have any questions about restaurant insurance, contact the team here at RMS Insurance Brokerage, and we will help you find the right policy.