When you own a business, you’re going to have to deal with many different costs, including a variety of insurance policies. Because so many bar and restaurant owners operate with a tight budget and can’t possibly predict when the budget will get tight, they often wonder whether money could be saved by reducing their commercial insurance policy coverage.
At the same time, they understand that they need enough coverage to protect their business in specific situations.
General Liability and Property Insurance
If your restaurant or bar policy includes general liability, this means that your legal expenses are taken care of in the event that you are sued. This includes injuries that occur on your premises, illness from food served by your establishment, third-party property damage, and copyright infringement.
Property insurance protects you in the event that your establishment and its contents become damaged due to events such as weather, theft, and fire. Items included in property insurance coverage are things like furniture, kitchen equipment, and any other property used to serve food or beverages to your patrons.
So, how can you save money on these two types of insurance cost?
Combine them by opting for a business owner’s policy or BOP. This policy includes both types and can cost under $2600 yearly. If you own a small restaurant, you may be able to obtain discounts on BOP coverage.
The bonus of BOP coverage is that many of these policies also include Business Interruption Insurance, which offers reimbursement for lost income if you have to rebuild or repair your restaurant or bar following property loss.
Liquor Liability Insurance
Some states don’t require establishments to carry liquor liability or bar insurance. However, if you don’t have this coverage, you can be held liable for any injuries or damages caused by an inebriated patron who acted or conducted themselves in a manner that led to injuries or damaged properties.
Should this happen to your business, it could end up costing you thousands of dollars.
An example of this would be a patron who becomes intoxicated at your establishment, and then gets into his or her car and injures or kills someone.
In addition to paying for the driver’s damages, a victim’s family could sue you if you don’t have bar insurance.
The bottom line is that you really need the protection that liquor liability insurance provides, especially when it can cost you under $4000 per year to have.
Workers’ Compensation Coverage
You’re definitely not paying too much by having coverage for your staff. After all, without them, your establishment would be impossible to run.
Not only that, but with all of the dangerous conditions that exist in food service establishments, including broken glass, greasy kitchen floors, and similar risks, getting the right small business insurance is a must.
The Coverage You Need at the Best Possible Price
No two restaurants or bars are alike, and neither are their insurance needs. When you want to make sure you’re not paying too much for restaurant insurance, Tabak Insurance Agency can help you determine your exact coverage needs.
Our thorough business evaluation can get you the best possible price on your insurance. Find out how.