As a restaurant owner, protecting your restaurant from potential risks is paramount. You can safeguard your enterprise by securing a commercial general liability (CGL) insurance policy. This type of coverage, also known as restaurant insurance, is designed to shield your restaurant from a range of common liabilities and can be your financial aid when faced with unexpected incidents. Here is what your general liability coverage can do for your restaurant:
Protects Against Bodily Injury Claims
Bodily injury claims arise when an individual suffers physical harm on your business premises or suffers harm due to your business operations. This could range from a customer slipping on a wet floor at your restaurant to an employee injuring themselves while operating machinery. It could also include a pedestrian being hit by a business vehicle. These incidents can lead to significant medical expenses, loss of income, and even legal action if the injured party decides to sue your business for damages.
Commercial general liability insurance can cover the immediate medical expenses associated with the injury. This can include costs such as ambulance fees, emergency room visits, surgery, medication, and any necessary follow-up treatment. The legal defense costs can quickly escalate if the injured party decides to sue your restaurant. Your CGL policy can help cover these costs, including attorney’s fees, court costs, and any settlements or judgments. If the injured party has to miss work due to their injury and loses income, they may seek compensation. Your CGL coverage can help cover these costs, protecting your business from a potentially significant financial burden.
Covers Property Damage Claims
Property damage claims arise when your restaurant operations cause damage to someone else’s property. A fire in your restaurant could spread to neighboring properties, or an employee driving a company vehicle could accidentally hit and damage another car. If your restaurant is liable for causing damage to another person’s property, your commercial general liability policy can cover the costs to repair or replace the damaged property. In severe cases, this could be anything from fixing a broken window to replacing an entire building.
If the owner of the damaged property decides to sue your restaurant, you may need to defend your business in court. Legal defense costs, including attorney fees, court costs, and any settlements or judgments, can quickly add up. Your restaurant insurance policy can help cover these expenses. In some cases, there may be costs associated with cleaning up or removing debris caused by the damage. After a fire, there could be significant cleanup required. CGL insurance can cover these costs as well.
Shields Against Advertising Injury
Advertising injury refers to damage caused by your restaurant’s promotional activities. This could include false statements made in writing or verbally that harm the reputation of another business. It may also include unauthorized use of someone else’s copyrighted material, such as music, images, or text. There is also unlawful use of someone’s image or other personal information without their consent.
You may be required to correct the offending advertisement or issue a public retraction. Depending on your policy, your CGL insurance may cover the costs associated with these actions. If the claim results in your restaurant temporarily halting its operations, your CGL policy may cover the loss of business income during this period.
Covers Claims Against Your Products
Claims against products may involve allegations that something you sold or served caused harm. If a customer alleges they got food poisoning from a meal at your restaurant, this would be a product liability claim. Your commercial general liability policy can cover the associated medical costs. This could include hospital bills, medication costs, and related healthcare expenses. In some cases, if a product you’ve served is found to be harmful, you may need to issue a recall. Depending on your policy, your general liability insurance may cover costs associated with a product recall.
Find a Reputable Restaurant Insurance Company
An experienced insurer will understand your business’s unique risks and offer tailored policies to meet your needs. They can provide comprehensive coverage options. They can guide you through the process, confirming you understand your coverage limits. Start your search for a reliable insurance company today to protect your restaurant with the right general liability coverage.