How to Know if You’re Paying Too Much for Insurance

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Owning your own business involves many costs. Because so many bar and restaurant owners operate with a tight budget and can’t possibly predict when they’ll be busy, they often wonder whether money could be saved by reducing their commercial insurance policy coverage. Learn about why these common coverages may be important to your business.

General Liability and Property Insurance

waiter pointing menu to customerIf your 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 establishment following property loss.

Liquor Liability Insurance

In Texas, establishments are not required to carry liquor liability or bar insurance. However, by not having this coverage, you can be held liable for any injuries or damages in the event that an inebriated patron acted or conducted themselves in a manner that caused them to become injured or caused damage to your property. Should this happen to you, 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, not having liquor liability insurance coverage makes it possible for the victim’s family to sue you. The bottom line here is that you shouldn’t be without the protection that liquor liability insurance provides, especially when it can cost you under $4000 per year to have.

Workers’ Compensation Coverage

female bartender serving cocktailYou’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 establishments are alike, and neither are their insurance needs. When you want to save on insurance, Tabak Insurance Agency is your best option. Our thorough business evaluation can get you the best possible price on your insurance fast; find out how.