Types of Insurance Your Business Needs

Types of Insurance Your Business Needs

Running a business is hard. Add in the potential for fires, slips and falls and cyberattacks, and it’s easy to see the need for the best possible insurance and people in your corner. Fortunately, there are many policy coverages available to protect your livelihood. Society Insurance has detailed four critical types of insurance protection that hospitality businesses need.

General Liability Insurance

A staggering 44% of Society Insurance’s claims are related to slips, trips and falls, and these accidents are a top source of loss for businesses. Business owners are required to take reasonable steps to protect customers from known hazards and to inspect their property regularly to find and remediate hazards that could cause injuries. General liability insurance provides coverage for general business claims involving injuries and property damage.

Society Insurance takes a proactive approach to reduce the number and severity of slip-and-fall accident claims. An example is a floor or walkway audit to evaluate risks and develop a plan to improve floor traction and help reduce injuries.

Liquor Liability Insurance

Alcohol service creates unique risks and exposures. Businesses that do not follow the appropriate laws and regulations run the risk of facing fines, jail, license revocation and/or bad publicity. The DRAM Shop Act allows third parties or others to recover damages caused by alleged over-service of alcohol. Even if your bar is not liable in these complicated situations, legal defense costs can add up quickly. Liquor liability insurance is critical for costly claims and litigation that arise because of alcohol service and damage or injury caused by an intoxicated person.

Fire Insurance

Each year between 2012-2016, fire departments responded to an average of 8,240 structure fires at eating and drinking establishments. These fires resulted in an average of two civilian deaths each year, along with 115 injuries and $246 million in property damage. From major kitchen fires to electrical fires, having the right fire coverage will help ensure that your business can recover.

Fire coverage is included in most business owners’ policies, but for leased properties, there may be coverage gaps that are often overlooked. As an example, a tenant who does a build-out may be required to insure those improvements even if they will become the property of the landlord upon lease termination. Also, landlords often require tenants to insure HVAC units and repair or replace them in the event of damage even if not originally purchased by the tenant. The details of a landlord/tenant lease regarding who is responsible for what are important  considerations before a fire happens.

Cyber Liability Insurance

The risks associated with data security (both malicious and accidental) continue to grow in number and sophistication. Cybercriminals look for the quickest way to get in, get information and get out without being detected, and they have increasingly targeted small businesses that are perceived as easier targets with less risk of being caught. Cyber liability insurance provides data security and privacy coverage that addresses direct losses for your business and third-party liability claims. Businesses should look for a comprehensive plan with breach response solutions from the moment a breach is suspected through restoration of business operations backed by an expert team of claims, legal, forensic and crisis management personnel.

Restaurant and bar owners might also consider these other types of insurance:

• Employment Practices Liability protects from employee-related claims and allegations, such as sexual harassment, discrimination, abuse or wrongful termination. In today’s litigious business climate, these damaging claims can destroy a business.
• Commercial Auto Insurance protects vehicles used for business purposes, like running errands, making deliveries, carrying supplies and more.
• An Umbrella Policy provides additional coverage and can protect a business against expensive, catastrophic losses.

With proper planning and by selecting an insurance company that customizes coverage options based on the unique needs of bar and restaurant owners, these businesses can prepare for the worst and avoid major financial loss and costly litigation.

This information is provided as a convenience, and it must not be assumed that it has detected all unsafe acts or conditions. This information is not professional advice; it is designed to assist you in recognizing potential safe work problems and not to establish compliance with any law, rule or regulation. This information contains only a general description of coverages and is not a statement of contract. All coverages and limits are subject to the terms, definitions, exclusions and conditions in the policy. This information does not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding available coverages.

Society Insurance is recognized throughout the industry as a leader in providing superior restaurant and bar insurance coverage custom-tailored to fit the unique needs of each operation. To learn more, visit societyinsurance.com.