General Liability Insurance for Restaurants and Bars: Key Details
While shopping for coverage to protect your restaurant, food truck, or catering business, be sure to ask your insureon agent about the policies that fit your business needs. To help you get an idea about what kind of protection your food service business might require, take a look at the following types of claims and how General Liability shields your business from financial loss.
Bodily Injury Claims
As professionals in a fast-paced industry, food service business owners know how quickly an accident can befall a patron in their establishment. From hot coffee burns to allergic reactions and food poisoning, your food service business must be prepared for the common lawsuits and mishaps that could derail a small business without adequate General Liability coverage.
If a third party's injury or illness results in death, your General Liability policy will cover medical expenses, funeral expenses, and court-awarded compensation. However, your own employees' on-the-job injuries or job-related illnesses are not covered under this policy; for that protection, consider purchasing Workers' Compensation Insurance.
Property Damage Claims
General Liability Insurance can also protect your food service business from liability due to injuries or property damage that happen at other locations. For example, if your business caters a corporate reception and your food-warming equipment malfunctions and starts a fire, any resulting lawsuits alleging property damage would be handled by your policy.
Liquor Liability Coverage
If your business sells or serves alcohol to patrons, you'll probably need to purchase a Liquor Liability policy separately. If, on the other hand, you don't serve alcohol to customers but might occasionally offer it at a company party or similar event, the Liquor Liability coverage offered by your General Liability policy may be adequate to protect you against the risks you face. Visit our Liquor Liability Insurance page for more information about how this coverage protects your food service business.
Personal and Advertising Injury Claims
If you use advertising or promotional material to attract customers to your restaurant, food truck, catering business, or other food services business, you may want to consider a General Liability policy that covers copying another party's advertising or infringing on copyrights or brands. This protection will also shield your food service business from allegations that it caused non-physical damages to another person or entity through libel or slander.
Medical Expenses Claims
General Liability Insurance also includes coverage for claims relating to medical expenses due to a third party's injury on your business premises. Since medical expenses can easily exceed thousands of dollars, this protection is invaluable to small-business owners. Should a customer or someone who is not one of your employees be injured in your establishment, immediate medical attention is advised. Insurance companies usually prefer to cover the expenses of immediate medical attention rather than let the situation go unattended and have that person level a claim against your business.