- Inadequate liability coverage: Restaurants are at a high risk of liability claims, such as customers getting injured on the premises or becoming ill from consuming food. It's important to make sure that your liability coverage is adequate to protect your business in case of such claims.
- Lack of coverage for food spoilage: Many standard business insurance policies do not cover the cost of food spoilage due to power outages or other issues. This is a particularly important consideration for restaurants, as a significant portion of their inventory is perishable.
- Not having workers' compensation insurance: Many states require employers to have workers' compensation insurance, which covers the cost of medical treatment and lost wages for employees who are injured on the job. Failure to have this type of insurance can result in significant fines and penalties.
- Not including coverage for delivery drivers: If your restaurant offers delivery services, it's important to make sure that your insurance covers delivery drivers in case of an accident.
Liquor liability coverage is a type of insurance that protects a restaurant or other business that serves alcohol from claims related to serving or selling alcohol. This coverage is designed to protect a business from liability if a customer becomes intoxicated and causes an accident, such as a car crash, or if a customer becomes violent or causes damage to property while under the influence of alcohol.
When a business serves or sells alcohol, it has a legal responsibility to ensure that it is not over-serving customers or serving alcohol to minors. If a business is found to have over-served a customer or served alcohol to a minor who then causes an accident or causes damage, the business can be held liable for any resulting injuries or damages. Liquor liability coverage can help to protect a business against these types of claims.
Most commercial general liability (CGL) policies do not include Liquor Liability Coverage, that's why, depending on the state and the type of business, is a requirement to buy separate coverage. This coverage can usually be added to a business's existing insurance policy or purchased as a separate policy. The coverage limits and exclusions may vary depending on the policy but usually they include limits for bodily injury and property damage, as well as legal defense costs and any settlements or judgments.
The C. Pina Insurance Agency can provide guidance on what types of coverage and limits of insurance your restaurant may need for liquor liability and how to purchase it.
Does having live entertainment effect the need for coverage?
Having live entertainment at a restaurant can affect the need for coverage in a few different ways.
- Liability: Having live entertainment can increase the risk of liability claims, as customers may become injured or cause damage to property while dancing or participating in other activities related to the entertainment. This could be additional coverage to standard liability policy and your insurance agent should be informed.
- Noise and disturbance: Having live entertainment can also increase the risk of noise and disturbance complaints from neighbors or other businesses, which could result in a claim or legal action against your restaurant.
- Noise, disturbance and liability on third parties: The performer may cause a claim to a third party as a result of injury or disturbance of the entertainment, the policy may have certain coverage for this cases.
- Equipment: If your restaurant's live entertainment involves equipment such as instruments or lighting, it's important to make sure that they are covered in case of damage or theft.
It's important to inform your insurance agent of any live entertainment events you plan to host and they will help you determine if additional coverage is necessary. The C. Pina Insurance Agency can also help you understand what types of coverage are needed to protect your restaurant in case of accidents, injuries, or damage that may occur during live entertainment events.
C. Pina Insurance Agency is an insurance agency that can help you understand and avoid these pitfalls. We specialize on this field and are able to provide guidance on what types of coverage and limits of insurance your restaurant may need. We also can help you compare insurance policies and find the one that best fits your restaurant's needs and budget. With our help you can have the peace of mind knowing that your restaurant is protected in case of an unfortunate event.
