Essential Insurance Coverage Restaurants and Bars May Need

While working in the hospitality industry can be lucrative and enjoyable, it also means accounting for many risks and exposures. If you are a restaurant or bar owner, you must diligently assess and thoroughly address potential threats to protect your financial viability and ensure you can manage the aftermath of various incidents. This makes understanding and investing in appropriate insurance a necessary part of operating your business.

What Types of Insurance Should Restaurants and Bars Have?

Given the many varieties of restaurants and bars within the hospitality sector, you likely realize that there is no one-size-fits-all solution to meet every business’s coverage needs. Still, several types of insurance may transcend the specific details of bars and restaurants in terms of their importance. When compiling your coverage portfolio, consider starting with the following core pillars:

• General liability insurance—This coverage can help pay for third-party losses for which you’re at fault, including bodily harm, property damage or personal and advertising injury (e.g., slander, libel and wrongful imprisonment).
• Commercial property insurance—This may assist with costs related to repairing or replacing your business’s property, including its building, furniture, equipment, electronics and inventory.
• Business interruption insurance—This type of insurance may help you recoup lost revenue and pay for ongoing bills should you need to close your business temporarily.
• Liquor liability insurance—If you serve alcohol to someone who ends up causing an accident, starting a fight or otherwise causing third-party losses, this coverage may be necessary to limit out-of-pocket financial ramifications.
• Workers’ compensation insurance—Often required by law, these policies can offset losses and expenses following employees’ on-the-job injuries or illnesses.
• Commercial auto insurance—These policies may be necessary if your restaurant or bar uses motor vehicles for business purposes, such as for deliveries or catering services.
• Employment practices liability insurance—This type of coverage can assist with legal expenses and financial losses if a current, former or prospective employee accuses you of inappropriate workplace practices, such as discrimination, harassment or wrongful termination.
• Commercial umbrella insurance—This type of insurance can offer additional liability coverage if third-party losses exceed the limits of other policies.

We’re Here to Help

Contact Statewide Insurance Agency today to learn more about coverage options for your bar or restaurant or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.