Food and alcohol liability
Describe food service, alcohol sales, hours and entertainment so the liability review reflects the operation.
Restaurants
Restaurant Insurance.
Restaurant insurance needs to reflect what you serve, how you deliver it and the income at risk if your kitchen closes.
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What we look at.
Spoilage and interruption
Compare refrigeration breakdown, utility interruption, spoiled stock and the income lost while service is suspended.
Delivery vehicles
Distinguish business-owned vehicles, employee cars and delivery platforms when reviewing auto liability.
General Liability
Review bodily injury, property damage, products or completed operations, and required additional insured endorsements.
Property
Building, improvements, equipment and stock. Compare valuation, covered causes, deductibles and relevant sublimits.
Liquor Liability
Review alcohol-service liability, assault and battery restrictions, defense treatment and required limits.
Workers Comp
Review payroll, classifications, work locations and employer's liability. Statutory requirements vary by state and circumstances.
Business Interruption
Income loss and qualifying continuing expenses after a covered interruption. Review the trigger, restoration period and extended income provisions.
Spoilage
Perishable stock following covered events. Equipment breakdown and off-premises utility interruption require careful attention.
Hired and Non-Owned Auto
Business liability arising from rented or employee-owned vehicles, subject to the insured use and policy terms.
Employment Practices Liability
Employment-related claims such as discrimination or wrongful termination. Review defense, retention and wage-and-hour restrictions.
Questions & answers
Good questions to ask.
Does general liability cover alcohol service?
Do not assume it does. A restaurant that sells or serves alcohol should review liquor liability terms separately, including limits, exclusions and any conditions related to the operation.
Is food spoilage covered after a refrigerator fails?
It depends on the coverage and cause. Review spoilage and equipment breakdown provisions together, including temperature change, power failure, covered stock, deductibles and limits.
What if employees deliver food in their own cars?
That creates a business auto liability exposure. Review hired and non-owned auto coverage and confirm delivery use; damage to the employee's own vehicle is a separate question.
Will business income insurance pay whenever we close?
No. Payment depends on a covered cause and the policy's interruption terms. Review waiting periods, continuing expenses, the restoration period and any coverage for utility failures or food contamination.
From our journal
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