Insurance is an essential element for any business, and this is especially true for a bar or restaurant. Choosing the best restaurant and bar insurance can be challenging, as there is a range of essential components to consider.
Our skilled Lake Region Insurance Agency team can put together the perfect package for your business. With proper coverage in place, you help keep your bar or restaurant viable and thriving.
Why Is Bar and Restaurant Insurance Different?
Many insurance policies can apply to just about any type of business. Any owner will need to make sure they have liability and property coverage, at a minimum. But by their nature, bars and restaurants have additional needs and requirements.
They deal with perishable products and thin profit margins. Any disruption in inventory or operations can have disastrous consequences for your revenue.
And restaurants and bars inherently carry greater risk for the employees, customers, and business owners. Potential hazards include:
- Food Poisoning
- Burns and Cuts
- Drunk Driving Incidents
- Economic Shutdowns
Specialized insurance policies offer much-needed peace of mind and reassurance. You will be in a position to weather the setbacks that come your way.
Do I Need Bar and Restaurant Insurance?
Any establishment responsible for cooking and serving food or serving alcohol should ensure they have bar and restaurant insurance. These businesses can include any of the following:
- Coffee Shops
- Delis and Sandwich Shops
- Bars, Pubs, or Taverns
- Fast-Food Restaurants
- Food Delivery or Takeout Services
What Does Restaurant And Bar Insurance Include?
Each business has its own needs, depending on how they operate. There are many pieces that can fall under bar and restaurant coverage. Here are the most common and essential items to discuss with your agent.
As the name suggests, property insurance offers financial protection for the business’s physical building and property. This coverage includes the actual structure and contents. To have a viable claim, you must prove that the damage occurred due to an insurable event such as theft or fire.
Obviously, spoiled food is a safety issue and cannot go to your customers. But spoilage also represents a significant financial loss when it happens. Restaurant and bar insurance must offer protection for any spoiled goods.
Power outages or equipment failure can make food unsafe to use. It’s crucial that your insurance covers this type of loss so that you can protect your bottom line.
Similarly, equipment breakdown protection is a vital aspect of any restaurant and bar insurance. Since properly-working equipment directly ties to customer safety, this type of policy should be non-negotiable. These plans can cover the cost of repairs necessary for critical equipment. Covered items could include refrigerators, ovens, or coolers.
Business owners need to prove that the equipment receives proper maintenance and servicing. Without this documentation, the insurance company may refuse your claim. Be sure to clarify with your agent what you need to do to stay in compliance with this part of your policy.
Employment Practices Liability
Restaurant and bar insurance should offer protection against employee lawsuits for situations such as discrimination. Assuming the employer’s behavior was not intentional, this type of policy provides protection.
Workers Compensation Insurance
This plan is an insurance policy for all businesses that have employees, not only restaurants and bars. Workers compensation helps cover costs if the worker sustains injuries in the workplace while on the job.
Given the presence of stoves, knives, and deep fryers in many commercial kitchens, workers face the risk of injury each day. Workers comp should be non-negotiable, no matter how many employees you have.
Business Continuation Insurance
Business continuation insurance has come to light during the current pandemic and can prove to be a lifeline for businesses. This type of policy will provide income if your business must close temporarily, allowing you to stay afloat. In addition, some policies can cover the cost of needing to relocate your bar or restaurant for a while.
Service industry businesses, such as food and drink establishments, can be particularly at risk during an interruption. They tend to have thin profit margins that disappear quickly. The right insurance policy can help mitigate this problem.
Liquor Liability Insurance
Liquor liability insurance protects you against customers’ actions after drinking at your business. If you served someone alcohol who then caused an accident, you could face liability.
These legal and medical claims can skyrocket, depending on the severity of the accident. Having the right policy in place can help you handle these expenses and protect your business.
So-called ‘Dram Shop’ laws make liquor liability insurance a necessity. These laws originate at the state level, not the federal. Dram laws kick in if a business serves a minor or a visibly intoxicated person who then creates harm due to their drinking.
In the worst-case scenario in which a death occurs, a restaurant or bar could end up losing everything without coverage in place. Restaurant and bar insurance must include liquor liability if your business serves alcohol.
Business Owners Policy (BOP)
A business owners policy offers a strategy for having sufficient coverage at a more affordable price. This type of plan combines property and liability protection. When you work with a knowledgeable and independent agent, you can find the best option for your needs.
How Can We Help?
Here at Lake Region Insurance Agency, we have a significant advantage over other agencies. We are independent of any particular company, and our independence helps us to work objectively. Our team works to find the best fit for your business and budget.
Our team of experts has decades of experience in the hospitality industry. We understand the intricacies of bar and restaurant insurance, so we can help you get the right policies. It’s an honor to serve our neighbors as they run their businesses.
Building a business is a tough gig, and we are here to help you protect your hard work and investment. Reach out today for a free insurance review or quote to see how we can help. With offices throughout Greater Minnesota, our agents are close by and ready to go to work for you.