Every restaurant owner who wants to stay in business needs insurance for protection against potential lawsuits and disasters. Risks increase for restaurants when they serve alcohol, which can attract aggressive crowds, particularly if there’s a dance floor and a DJ who encourages drinking. Here’s a look at the importance of having restaurant insurance in Seattle, WA.
How Does an Incident at My Bar or Restaurant Affect Me?
Bars and restaurants that serve liquor run the risk of patrons drinking excessively, thus becoming dangerous to others. Fights can break out when two drinkers disagree on something that involves their egos. Patrons who aren’t even associated with the drunks can get injured in the process. A bouncer can get hurt trying to break the fight up. Lawsuits can occur for all these incidents, including when a bouncer injures people.
There are various other ways besides drunken behavior that your restaurant or bar can get sued. If a customer trips and falls in your restaurant, they may sue your establishment for unsafe conditions. Another way to get sued is if your food or drinks cause illness. Serving liquor to minors is also another way your business can wind up in legal trouble.
How Can Restaurant Insurance Help My Business?
Restaurant insurance is an investment in financial safety since it covers legal costs when cases go to court. Besides workers’ compensation and commercial auto insurance, your restaurant needs at least a standard commercial insurance policy as a foundation for other coverages.
When you own a public establishment such as a restaurant, you have a responsibility to protect your employees as well as your customers. Getting proper restaurant insurance helps establish a credible reputation, whereas you can face expensive litigation without it. Workers’ compensation insurance pays medical bills and partial income when an employee is recovering after workplace accidents/injuries.
If your restaurant or bar has a company vehicle, it needs to be insured with a commercial auto plan, as you cannot use a personal auto plan to cover business-related travels. Other types of business insurance you should look into include:
- Commercial property
- Cyber breach
- Restaurant equipment
- Specialty coverage
Do I Need a Standard Policy?
A standard business insurance policy includes general liability, which pays for legal costs, including settlements. If you own commercial property, you need commercial property insurance to pay for disasters, including theft and vandalism. One way to save money on both liability and commercial property coverage is to buy a Business Owners Policy (BOP), which combines the two at a lower cost.
BOP plans are popular with small businesses due to their greater cost efficiency. You can add on specialty coverage based on your establishment’s risk factors. You must have enough coverage to pay for any disaster that’s within the realm of possibility. Decide the coverage based on your company size, location, hours of operation, and other relevant factors that affect your business.
Contact our team at Humble & Davenport Insurance Brokers, Inc. to get personalized restaurant insurance in Seattle, WA. We are happy to answer your questions concerning the coverage requirements for your restaurant or bar.