Business Insurance: Restaurant Liability Insurance

What Does Restaurant Liability Insurance Actually Cover?

Restaurant Liability Insurance

When you own a restaurant you open your business to the public every day.  Even if you offer a safe and clean environment, accidents can happen. 

Because of this, restaurant liability insurance was created.  This coverage is specifically tailored to restaurants and their most common claims. 

Property Damage Coverage

While you might think that your patrons are more likely to cause damage to your property than the other way around, there are instances where you may damage their belongings. 

For example, if a waiter or waitress trips and spills a drink on a patron’s laptop causing it to break, you would be liable for replacing the laptop.  In a more extreme example, if your kitchen were to catch fire while patrons are in your restaurant and the patrons lose belongings due to smoke and fire damage, you would be responsible for replacing their things.

Bodily Injury Coverage If a patron is injured in your restaurant,

this coverage will cover their claim.  Injuries can range from tripping on a

step and falling, to food poisoning from their meal, to having a hot beverage spilled on them by a clumsy waiter. 

Because there are many ways for a patron to injure themselves in your restaurant, this is extremely important coverage to have.

Medical Expense Coverage

If one of your patrons or staff is injured resulting in medical bills or continued medical expenses you may be asked to pay out.  Since your regular coverage may not cover the full amount requested by the injured party, you can consider an umbrella policy that offers more coverage for medical expenses. 

This coverage is recommended to ensure that you are covered for whatever comes down the line.

Liquor Liability Coverage If your restaurant serves liquor it is important

to carry coverage for claims related to it.  If you do not serve alcohol, it isn’t necessary for your business. 

Liquor liability will offer you coverage should one of your patrons suffer an injury in an impaired state or should they cause an injury to another due to their impairment. 

This can include everything from starting a fight with another patron to drunk driving.  It is important to keep tabs on all drinking patrons to avoid issues like these, but it is imperative to have coverage for your restaurant if you serve liquor just in case.

Personal & Advertising Liability

You might not think you can cause an injury with your ad campaign, but competitors can file a claim against you if they feel you are attacking their restaurant or are falsely advertising your business. 

This can include ads that attack other restaurants, ads that refer to your restaurant as “the best” without backing, leaving false negative reviews online, and more. 

Ideally you won’t attack your competition, but should they ever see your ad campaign as damaging to their business they can take you to court.  This coverage will cover legal fees and expenses related to the claim.

ABCO Insurance Agency in Southern New Jersey can

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you time and money.