Owners of pubs and restaurants can purchase various insurance policies to protect their business from different liabilities. Popular pub and restaurant insurance coverage include general liability, worker’s compensation, and business owner’s policy. Other top policies include business property insurance and business interruption coverage. Some policies are designed for pubs or restaurants.
Pub Owners Insurance
Pub owners need three primary types of insurance policies: general liability insurance, liquor liability insurance, and assault and battery coverage. Property and liability coverages are the most important policies, but pub owners can also purchase auto and workers’ compensation insurance. Here’s an overview of the primary insurance policies pub owners should consider:
a) General Liability Insurance
Pub owner’s general liability coverage protects the business against claims and lawsuits by third parties. The general liability insurance will cover the claim if someone gets injured in the pub because of a slip. General liability also pays for property damage and product liabilities like someone falling ill after eating a sandwich from the bar.
Pubs will often offer various products and entertainment services, including mechanical bulls, live bands, and pool tables. If third parties suffer bodily injuries and property damage while using such services, they can sue the pub. General liability policies can protect the pub from such claims. Most policies don’t cover trampolines and pyrotechnic displays.
b) Liquor Liability Insurance
General liability policies exclude claims arising from the sale or service of alcoholic beverages. Pub owners will need liquor liability coverage to pay for such claims. Famous examples include intoxication and bodily injuries or property damage caused by a patron. The liquor liability exclusion prevents general liability insurers from covering such claims.
Liquor liability coverage varies from state to state, depending on liquor laws, nature of business, and total sales. Some claims can fall between general and liquor liability resulting in disputes over who should settle. To avoid such conflicts, pub owners should purchase general liability and liquor liability coverage from the same insurer.
c) Assault and Battery Coverage
Standard coverage for general and liquor liability don’t specifically exclude assault and battery claims. Most policies, however, feature expected or intended injury exclusions. They exclude injuries expected or intended from the standpoint of the policyholder. An example is a bar owner or employee acting against an unruly patron and causing injury.
The general liability and liquor liability policies will apply expected or intended injury exclusions in such cases. Pub owners can purchase additional coverage in the form of assault and battery insurance to cover such scenarios. Some insurance companies include assault and battery coverage within general and liquor liability policies.
Restaurant Owners Insurance
Owners of restaurants need more coverage than pub owners, but priorities vary depending on the type of business. Most restaurants need general liability insurance, which covers bodily injuries, property damage, and advertising injury claims raised by third parties. Here’s an overview of other insurance policies for restaurant owners:
- Workers Compensation: Covers bodily injuries suffered by restaurant employees in their line of duty. An example is a chef getting burnt or cutting themselves with a knife during meal preparation.
- Spoilage Insurance: Restaurant owners can suffer massive losses if the food and beverage go bad due to a power outage. Spoilage insurance can cover the cost of replacing spoiled food and drinks.
- Food Contamination Insurance: Food contamination can cause sickness and compromise equipment and the entire restaurant. A food contamination policy covers the cost of claims and replacing contaminated food and cleaning equipment.
Other Pub and Restaurant Insurance Policies
Pub and restaurant owners need various other policies to protect their business against unknown events, interruptions, bad practices, and more. Most small business owners need a business owner’s policy (BOP) to protect them from running out of business due to lawsuits. Pub and restaurant owners should also buy commercial property insurance. The insurance covers the cost of repairing or replacing the building and personnel in case of an incident.
Other popular insurance policies include business interruption insurance, employment practices liability insurance, employee dishonesty coverage, and hired/non-owned auto liability insurance. Business interruption insurance pays for lost wages if the pub/restaurant is forced to close down operations for some time. Employment practices liability coverage pays for claims stemming from bad practices, such as an employee claiming racial or gender bias.
Hired/non-owned auto liability insurance protects the business when an employee causes injury or property damage while using a hired car. Employee dishonesty coverage can pay for losses suffered when an employee steals from the company. Pub and restaurant owners have many other policies and additions to consider based on their operations and risks. Some businesses need errors & omissions coverage as well as directors’ & officers’ insurance.
Dependable Pub and Restaurant Insurance
Pubs, nightclubs, restaurants, and other businesses in the food and beverage industry need comprehensive coverage against all known risks. Successful business owners usually hire risk analysis experts to identify the key areas that need protection. Once liabilities are determined, the business can shop around to find the best insurance coverage. Owners should seek customizable pub and restaurant insurance from companies like Tabak Insurance.
