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What Makes Restaurant and Bar Insurance Different?

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:

  • Cafes
  • Coffee Shops
  • Delis and Sandwich Shops
  • Bars, Pubs, or Taverns
  • Diners
  • Fast-Food Restaurants
  • Food Delivery or Takeout Services
  • Pizzerias

Restaurant and bar insurance gives you peace of mind.

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.

Property Insurance

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.

Spoilage Coverage

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.

Equipment Breakdown

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.

Equipment failure can be catastrophic to your restaurant.

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 is essential for your bar or restaurant.

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.

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Your Guide to Choosing Business Insurance

Choosing business insurance is just one of the thousands of decisions business owners make when establishing themselves. While not as fun as choosing a logo or branding colors, it is still quite vital. When building and running a company, protecting it should be the first step.

Lake Region Insurance Agency understands your need to protect yourself and your business. Whether your company is home-based or has its own site, we are here to ensure that you have sufficient coverage. There are many options to consider, and our staff will help you select exactly what you need.

From liability to workers’ compensation, we find the policies you need. Our independent agents search through countless options to determine the best fit for your needs. We take the guesswork out of choosing your insurance. Give us a call or visit one of our offices in Greater Minnesota for a free quote.

Why Business Insurance is Essential 

Statistically speaking, you have a 40% chance of needing to file a business insurance claim within the next ten years. That is a relatively high possibility of something going wrong for your business. If you are running your company without sufficient protection, you could find yourself paying out-of-pocket if problems arise.

Choosing business insurance gives you protection if there is a fire.

Business insurance helps you to keep going without losing income if something happens to impact your revenue. Whether you sustain damage to your brick-and-mortar operation or have a claim filed against you, protection is critical. If you have business insurance, you have security and can keep moving forward. 

Even if you run your company from home, you should consider a business policy. This type of coverage provides protection that you do not have under a homeowners policy.

No matter what type of company you own, from a restaurant to an IT consulting firm, you need some level of business insurance. And this protection isn’t only for replacing damaged items. When you choose the right plan, it can help with all of the following:

  • Liability claims if someone gets hurt or sick at your business
  • Equipment repair and replacement after vandalism, fire, etc.
  • Making payroll if you are unable to bring in revenue due to a covered issue
  • Commercial vehicle coverage
  • Cyber liability issues

These are just a few of the protections you can have. Be sure to speak with your independent agent to discover the right options for your needs.

Choosing business insurance also gives you peace of mind when you have worked so hard to do what you love.

Choosing Business Insurance that Meets Your Needs

Workers' compensation insurance protects you and your employees.

With about two dozen different types of business insurance policies on the market, it can feel overwhelming to choose the right plan.

Just as with auto, home, and life coverage, no two situations are the same. For that reason, business insurance policies can be as varied as the business owners themselves.

You will be able to eliminate some policy options based on your industry. For example, if you are not running a garage, farm, or winery, you can bypass those choices. But that still leaves many more plans to consider.

When you meet with your agent, they will go over many questions with you about your company. While it can feel a little time-consuming, it’s crucial to make sure you have adequate and appropriate coverage without buying too much.

Some of the topics you will discuss with your agent include:

  • Is your business service-based or product-based?
  • How many employees do you have 
  • What is your gross annual profit? 
  • Is your business run from your home or its own building?
  • What equipment do you use?
  • Do clients or customers come on-site?
  • Do you store client information digitally?

These questions are critical in crafting a policy that protects the business and your assets, capital, and employees. And as your company grows and changes, your insurance will, too. 

Different Types of Business Insurance to Consider

Commercial auto insurance protects your company's vehicles.
Dark colored passenger vans in a parking lot

No matter what type of business you own, it’s likely that you will need one or all of these basic insurance coverages:

  • Liability – Liability insurance protects you if a customer files a claim against you for an injury or illness caused by or at your business. There are sub-categories within this category, such as general, professional, cyber, and product liability.
  • Property – This type of policy is fairly self-explanatory. It covers your structures, assets, and inventory in the case of loss due to covered incidents. If you have a home-based company, be sure to talk with your agent about how far your homeowners insurance will cover you. You likely need a separate policy for adequate protection.
  • Workers’ Compensation – If you have employees, this protection is crucial. Liability insurance does not cover employees while they are on the clock. 
  • Commercial Auto – Many businesses own one or more vehicles that need protection, as well. Don’t mistakenly think that your personal auto insurance will cover your company’s fleet.

Depending on the number of employees you have in your company, you may need to purchase a group health plan, as well. Be sure to talk with your agent about this option.

Come Get to Know Us 

With offices in New London, Willmar, and Cokato, Minnesota, Lake Region has been serving our community for over 50 years. This vast experience gives us the expertise to provide you with a unique policy perfect for you and your business. 

Our team does not work for any particular insurance company. Instead, we are independent agents who can seek the best plan for your needs. We have no reason to oversell you on coverage because we are not trying to meet a carrier’s quota.

We believe that your business is valuable to the community and deserves the best protection possible. With that in mind, we eagerly serve your unique situation. Choosing business insurance is a painless process with us on your team.

Whether you need auto, health, car, or business insurance, Lake Region Insurance Agency is here for you. Visit us today to get a free quote and see all the options we offer to protect your business.