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Your Restaurant and Insurance: What You Need to Know

As a restaurant owner, you have a lot on your plate. From managing staff to keeping the kitchen running smoothly, there’s always something that needs your attention. But one thing you can’t afford to neglect is your insurance. In this blog post, we’ll take a look at what restaurants need to know about their insurance. We’ll cover the basics of commercial liability insurance and workers’ compensation insurance, and we’ll also touch on some of the other types of coverage that restaurant owners should consider.

1. Protecting Your Business from Liability Claims

One of the most important reasons for carrying insurance as a restaurant owner is to protect your business from liability claims. Whether it’s a customer who slips and falls in your restaurant or a customer who claims that your food made them sick, liability claims can be expensive and time- consuming to deal with. If your restaurant serves alcohol, liquor liability is another critical coverage to have in place. And if you don’t have the right insurance – or enough insurance – you could be on the hook for thousands of dollars in damages.

2. Covering the Cost of Property Damage

Your restaurant likely has a physical space it operates in, so covering the cost of property damage is also important. Whether it’s a fire that damages your kitchen or a storm that wreaks havoc on your dining room, property damage can be expensive to repair. And if you don’t have insurance, you could be left footing the bill yourself.

3. Providing Financial Protection for Your Employees

Another important reason to carry insurance as a restaurant owner is to provide financial protection for your employees. If an employee is injured on the job, or becomes ill because of something they were exposed to at work, workers’ compensation insurance may help pay their medical bills and lost wages. And if you don’t have workers’ comp, you could be sued by the employee for negligence. As a restaurant owner, it’s important to make sure you have the right type and amount of insurance coverage in place.

4. Protecting Yourself from Employment-related Claims

Finally, as an employer, there is always potential for you to face claims of wrongful termination, sexual harassment, discrimination, or other employment-related allegations. Employment Practices Liability Coverage (also known as EPLI), is a key piece of proper protection for your business. In some policies, EPLI may provide coverage for wage & hour, third party liability, defense costs, and punitive damages. As you can see, there are many important reasons why restaurants need to review their insurance. From protecting your business from liability claims to providing financial protection for your employees, insurance is a vital part of any restaurant’s operation. Let us help you make sure you’re properly insured before you’re served with a claim!

Keep in mind every restaurant’s insurance needs are different and these coverages may not always apply to your situation.

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