What restaurant liability insurance coverages should restaurants have?
Restaurant liability insurance coverages can offer protection in situations where a restaurant could be sued. There are several different liability coverages that restaurants might consider:
- General Liability Coverage: Often protects against commonplace accidents, like slips and falls, that result in injuries to customers or other non-employees. Usually shields against libel or slander claims against the business as well.
- Liquor Liability Coverage: Often protects against situations where the restaurant is implicated due to over-serving alcohol to patrons. Coverage may extend to alcohol poisoning, DUI incidents following a customer's departure, slips and falls of intoxicated customers, or physical confrontations involving intoxicated customers.
- Product Liability Coverage: Often protects against outbreaks of foodborne illnesses attributed to incorrect food or beverage preparation. Coverage usually applies when there are widespread and/or severe cases requiring medical care.
- Umbrella Liability Coverage: Often protects against claims that exceed the financial limits of other types of restaurant liability insurance coverage.
What types of property insurance are available to restaurants?
Restaurant property insurance coverages provide protections that are distinct from those afforded by restaurant liability insurance coverages. Property coverages mainly focus on helping protect the tangible things that a restaurant has. There are a few potentially important ones:
- Commercial Building Coverage: Might insure restaurant-owned structures, including a building and any additional features like outdoor patios.
- Tenant's Betterment Coverage: Might insure improvements and upgrades to a restaurant’s rented space, such as a kitchen build-out or dining area setup.
- Commercial Contents Coverage: Might insure a wide range of restaurant items, including things like appliances, storage racks, cookware, tableware, furniture, decor and much more.
- Food Contamination Coverage: Might insure against the spoilage of prepared dishes and raw ingredients if caused by certain covered events.
Do restaurant policies cover special events hosted at a restaurant?
Many restaurant policies do offer coverage for events that are hosted on-site, such as rehearsal dinners, awards ceremonies, and conferences. Some policies may not be so generous with their coverages, though.
Before assuming that a policy will cover liability for such events, restaurants should review the particular terms of a policy with a knowledgeable insurance agent. An agent will be able to make sure that all necessary projections are in place.
How much does insuring a restaurant cost?
The cost of insuring a restaurant depends on a multitude of factors. Location, square footage, foods and drinks served, and past claims history are merely some of the details insurance companies look at. Using deep fryers, having high alcohol sales, staying open 24/7, and much more can all impact rates.
Because rates vary so much, it’s difficult to say how much insuring a specific restaurant will cost without getting quotes. An independent insurance agent can easily get customized quotes from several insurance companies, though.
Where can Massachusetts restaurants find restaurant insurance?
For help insuring a restaurant that’s in Massachusetts, reach out to the independent agents at Norwood Insurance Agency. We’ve helped many food service businesses get the insurance they need, and we’ll make sure your restaurant finds a restaurant insurance policy that’ll protect the business well.