Thinking of Owning a Bar or Restaurant? Remember to Think About What You Need for Insurance
Guest Post from Embroker*
When planning the layout of a bar or restaurant owners are like creative artists. They combine different elements into something unique and memorable that many people find irresistibly attractive. Moreover, they work to establish a comfortable environment where people feel welcome. Insurance for your bar or restaurant is usually the last thing on your mind, but after all, even artists must pay the bills. So, some good guidelines are critical.
When it comes to insurance for restaurants, bars, private clubs, and other such establishments, workers’ compensation, business property insurance, and general liability insurance are absolutely essential.
In September 2016, the Oklahoma Supreme Court ruled that the state’s opt-out provision was unconstitutional. The case dealt a serious blow to the nascent opt-out movement, which began in Texas, but despite the efforts of lobbyists, has yet to spread beyond the Lone Star State. So, it looks like workers’ compensation insurance is here to stay, at least for the foreseeable future.
Workers’ Compensation insurance provides no-fault benefits to injured workers; these benefits cover direct economic losses, such as medical bills and lost wages. While the no-fault aspect is sometimes hard for business owners to swallow, the upside is that injured workers cannot sue for negligence in civil court.
Rules and rates vary significantly by jurisdiction, as workers’ comp is basically a state-run insurance program that has various coverages, exclusions, and procedures.
General Liability Insurance
Dram shop laws vary significantly by state as well, but a majority of jurisdictions still allow personal injury plaintiffs in car accidents, barroom assaults, and other such incidents to sue the bar or restaurant that provided the alcohol, at least in some cases. Due to the continued popularity of these lawsuits among plaintiffs’ attorneys — largely due to the supposed deep pockets of business owners — general liability restaurant insurance may be the only thing that prevents bankruptcy if a lawsuit is filed.
GL insurance pays for not only lawsuit settlement costs, but also for an attorney to defend the bar/restaurant in court. In this way, an insurance policy is a deterrent to such actions, because many lawyers will think twice before taking on an aggressive and well-established insurance defense law firm.
Business Property Insurance
Business Property Insurance covers both the building itself, as well as the inventory, furniture, fixtures, and other items inside the building, against fires, floods, break-ins, and other unexpected situations. There are basically two kinds of BPI policies:
There are many other factors involved in a comprehensive bar insurance policy, and an experienced broker experienced broker can help you sort them out with a minimal investment of your time.
For more information about this, you can contact William Ferree, Northeast contact for Embroker.
*This guest article contains information and external links maintained by the Embroker organization and are provided for the user’s convenience. Bartender Journey does not control or guarantee the accuracy, relevance, timeliness or completeness of this information and it is not intended as an endorsement by Bartender Journey, Full Throttle Productions or Whiskey with Me, LLC.
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