8 Must - Have Insurance Policies for Restaurant Operators

Restaurant owners, whether small or large, run the risk of causing bodily harm to customers, employees and others, as well as damage to customer’s and other’s property, which may result in a lawsuit.

-  Dhruv Kishore Bole*

Restaurant operators may not always have the financial resources to defend a lawsuit or pay settlement costs. As a result, restaurant owners must invest in comprehensive insurance coverage to protect their business and limit the financial consequences of a lawsuit, which can have a negative impact on the restaurant’s bottom line. When it comes to defending claims and paying settlement costs, having the right insurance coverage gives restaurant owners and operators peace of mind.

Let’s take a look at eight insurance policies that every restaurant operator should have.

GENERAL LIABILITY INSURANCE (GLI)

General Liability Insurance is one of the most important coverage that every restaurant should have. It is also known as Restaurant Liability Insurance. It shields the restaurant from a wide range of claims arising from customers, employees and third-party injuries or damages. Typically, the policy protects against premises liability lawsuits, product liability lawsuits and advertising injury lawsuits. Slip and fall injuries to customers and others are covered under premises liability, allegations of copyright infringement are covered under advertising injury and lawsuits arising from bodily harm to customers, such as food poisoning and burns, are covered under product liability. The policy covers legal fees, settlement costs and other lawsuit-related expenses. Generally, this insurance coverage is bundled into a more comprehensive Business Owner’s Policy. The cost of general liability insurance is determined by a variety of factors, including the location of the business and the industry to which it belongs, the size of the business, previous claims history, coverage desired and payroll costs.