Restaurant General Liability: Premise vs Off Premise

Restaurant General Liability Premise vs Off PremiseRunning a restaurant is challenging enough without having to worry about things like lawsuits, loss of income or property damage. Adequate restaurant insurance will help reduce such worries and help you to concentrate on your food and customers. General liability insurance is coverage that can protect you from a variety of claims on premise or off-premise of your businesses location. Business owners need some form of general liability protection to safeguard their livelihood – contact our experts to ensure that your policy is tailored for the unique demands of your business.

Premise Liability

So many people come and go from your restaurant daily, that general liability insurance is a must. General liability insurance protects you against types of bodily injury claims, such as:

  1. Slip and Falls
  2. Allergic reactions and food poisoning
  3. Accidents and negligence
  4. Scalding
  5. Choking
  6. Puncture wounds

General liability policies are designed to cover your legal fees, bond premiums, court-ordered, and settlements.

Liability and Property Insurance

Many food service businesses purchase a package policy, known as a business owner’s policy, or a BOP. This policy combines both general liability with property insurance for a single rate. To cover physical damage to your own property, you will need a property insurance policy. There are optional coverage endorsements based on your specific risks. Some policies can cover:

  1. The building
  2. Computer systems including point of sale
  3. Signage
  4. Equipment
  5. Furnishings
  6. Others’ property in your care

Common property claims in the restaurant business include fire, weather-related disasters, and theft. It typically covers the physical loss of your business space, its contents, business interruption, and expenses with re-opening your business in a new or temporary location.

Off-Premise Liability

Any owner of a food delivery or catering business knows that mobility brings additional risks to your business assets. Luckily, off-premise coverage can help keep your property and products covered while at other locations. This kind of coverage is a form of property insurance that safeguards food delivery and catering businesses that use their equipment and products outside their main premises. It can also cover other people’s property while it is in your care.

Off-Premise Property Coverage

This part of Off Premise Coverage protects others’ property in your control, say if you were operating at a venue. Property damages can easily exceed tens of thousands of dollars; this policy can save your business from paying out of pocket for the accompanying expenses.

Off-Premises Equipment Breakdown Coverage

Your culinary equipment is essential to your daily business operations. This part of Off-Premise Coverage protects your equipment, supplies, and food inventory while operating at another location. Depending on the specifications of your policy, some of the equipment can include stoves, ovens, computer systems, culinary supplies, etc. If your equipment or inventory becomes damaged from a fire or other catastrophe somewhere other than your main location, it can be replaced.

If someone should sue your business because of a real or perceived loss, the cost of a legal defense and settlement could be enough to potentially put you out of business. Still unsure of what type of insurance you need to protect your establishment and you? Our agents at H&K are happy to assist you in selecting the right coverage for your business.