MONDAY, OCTOBER 5, 2020
The Benefit of Restaurant Liability Insurance
The primary function of your restaurant is customer service. Satisfying a hungry stomach is the thing that keeps your doors open and customers coming back time after time. Of course, you want to do all you can to serve them a quality product without fail. However, you can’t guarantee that something won’t go wrong. And when something happens to one of your customers, it might be your responsibility to compensate them for their losses.
In many cases, a client’s losses might be the restaurant’s fault, even if the restaurant didn’t intend for the accident to happen. Negligence can occur in all lines of your services, and when it does, you might face a financial challenge if you must repay the affected client. To mediate some of these risks, most businesses carry general liability insurance.
Restaurants that carry general liability insurance can receive many benefits, including an overall better financial outlook. Let’s take a closer look at the benefit of this coverage and why it helps your business.
Understanding General Liability Policies
A liability is the legal responsibility one party bears for another party. Your restaurant’s liabilities are many, especially where your customers are concerned.
Of course, you never want to provide a customer with poor service. However, there’s no way you can prevent every accident. When these accidents occur, general liability insurance can compensate the affected third party for their losses. Generally, the policy covers third-party:
Therefore, should a customer sustain a harmful loss because of your mistakes, you can aid them in their recovery. They will receive the benefit of recovery without paying for their own expenses. However, the business itself won’t have to spend exceptional funds trying to meet these obligations.
For example, suppose that a client visits your restaurant and later sues you because they suffered a severe case of food poisoning afterwards. Or, perhaps, a client trips over frayed carpet on their way to the restroom and later sues you for their hospital bills. In either case, your general liability policy might help you compensate the affected client.
Besides the benefits to affected parties, commercial general liability insurance can supply exceptional protection to restaurant owners themselves. Simply by having this coverage in place, you can receive many benefits that will make your overall operations more secure.
Some of the ways a general liability policy can help your restaurant include:
Businesses that are responsive to customers are most likely to remain stable. This means being able to help clients out in good times and in bad, including following liability lawsuits.
With a liability insurance policy in place, you’ll enable your restaurant to respond to liability lawsuits and customer claims in a formal and prompt manner. Therefore, you won’t face any potential challenges by not being able to address the loss.
By having general liability insurance, you will enable your policy to pay for liability claims on your business’s behalf. Therefore, you won’t have to pay for a liability settlement out of your business accounts. There will not be a significant loss of profits because of a liability suit, and you therefore won’t but the restaurant itself in harm’s way.
Most liability insurance claims arise because of a lawsuit made by a third party. Therefore, the restaurant might not only have to pay a settlement to the affected person, but they might also face substantial legal costs because of the suit.
As a result, general liability insurance can provide you with the proper legal assistance necessary to settle the claim. It might pay both for your own legal expenses and the legal expenses of the plaintiff. Therefore, both parties can move on from the claim.
Keep in mind, most general liability policies cover more than just bodily injuries a restaurant customer might sustain. It can often cover personal injuries to others, which are different from physical losses.
For example, if a competitor alleges that you committed libel, slander, copyright infringement or advertising injuries against them, then liability insurance can also address these losses. Plus, don’t forget that your policy can also cover property damage to others for which the business is liable.
In many communities, restaurants and other businesses face a legal requirement to carry general liability insurance. Therefore, having a policy will help you make sure you can keep your doors open.
Additionally, restaurant owners can always increase and expand their liability coverage to make sure they safeguard themselves against local regulations. For example, if your restaurant sells alcohol or liquor, then you might have a requirement to buy a liquor liability policy. In many cases, you can buy this coverage as an endorsement to your general liability insurance.
Take the time to talk to your business insurance agent about the way to successfully cover your restaurant’s liabilities. We are happy to help you compare your different policy options to find both a foundation of coverage and the proper endorsements to build yourself the best policy.
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