If you operate a bar, restaurant, or nightclub, purchasing insurance is a viable option to protect your business and customers. An insurance agency can help you get adequate coverage to shield your establishment from potential risks and liabilities. Here are some things to know about business owner insurance and general liability insurance:
What is Business Owner Insurance?
Also known as business owner’s policy (BOP), business owner insurance combines several policies into an all-inclusive bundle. The specific coverage included in a BOP can vary depending on the insurance carrier and the needs of your business. BOP consists of the following:
Commercial Property Insurance
This policy can protect your business property, including buildings, equipment, paperwork, supplies, and furniture, against some risks. The perils include fire, theft, natural calamities, and vandalism. The policy also offers coverage for property your business owns or leases.
General Liability Insurance
General liability coverage within a BOP provides insurance for third-party claims of bodily injury, property damage, personal injury, or advertising injury. It covers legal expenses, medical costs, and other claims. This coverage covers costs if someone is injured on your business premises or if your products or services cause harm to others.
Business Interruption Coverage
Also known as business income insurance, it protects against income loss if your business operations are interfered with due to a fire or natural disaster. Business interruption insurance can cover ongoing expenses to help you recover. Some policies can also pay for temporary relocation expenses.
What is General Liability Coverage?
General liability insurance can be a standalone policy that offers multiple benefits to bar, restaurant, and nightclub owners. This coverage focuses on shielding your business when a third-party claim arises. General liability coverage can cover the following aspects:
The policy covers costs and damages when someone is injured in your bar, restaurant, or nightclub or due to business operations. If someone slips and tumbles on a spilled beverage and suffers an injury, the insurance can meet related costs like medical expenses.
If your establishment causes damage to someone else’s property, this coverage helps pay for repairs or replacement. An example would be when one of your servers spills food or a drink onto a customer’s lap, designer bag, or laptop.
Rental Property Damage
The general liability policy can cover the costs if the property you rent from another party is destroyed. When a fire destroys a venue you rented to host a party, the coverage can cater to the damages.
This coverage protects against claims of libel, slander, copyright infringement, and other similar issues from your business’s advertising or communications. Insurance can also shield your business when a third party accuses you of false or misleading advertising.
The coverage can mitigate the potential financial consequences of alcohol-related claims. This can include legal defense costs, medical expenses, and property damage. General liability policy offers limited coverage for liquor liability claims. This means you can purchase liquor liability insurance as an independent policy.
General liability can cushion you if another party sues you for verbal defamation, wrongful prosecution, unlawful detention, or privacy violations. This coverage can be helpful in instances when your staff uses social media to spread false information about a rival business and you face a lawsuit.
Legal Defense Costs
If a claim is filed against your business, general liability provides coverage for the fees of hiring an attorney to represent your business. This policy can also cover court-related costs like filing, deposition, and expert witness fees. If a covered claim results in a settlement, the insurance could also cover the compensation paid to the claimant.
Bars, restaurants, and nightclubs can consider both types of coverage to ensure comprehensive protection against various risks. Consult an insurance professional who can assess your needs and help you select sufficient coverage for your establishment.
Get General Liability Insurance
If you host high volumes of customers in your establishment, general liability coverage can protect your business from different claims and property damage. This policy can also be useful for businesses that serve food and drinks to cushion themselves against financial losses from lawsuits. Work with an insurance agency that can tailor your coverage based on your business size, location, and anticipated risks.