Table of Contents
- Getting Started
- What is Restaurant Insurance?
- Types of Restaurant Insurance Coverage that Arizonian Restaurant Owners Need
- What Insurance Do You Need as an Operating Bar?
- Common Exclusions to Restaurant Coverage
- Wrap Up
- Why Work with Arizona Bar and Restaurant Insurance
What Kinds Of Insurance Do Restaurant Owners Need In Arizona?
Restaurant owners can choose to customize their coverage, however, here are a few of the necessary coverages restauranteurs should have: Commercial General Liability Insurance, Commercial Property Insurance, Workers’ Compensation Insurance, Commercial Auto Insurance, Commercial Umbrella Insurance.
Everybody wants to turn their dreams into reality. So if you’ve been planning to invest in a restaurant, it’s a good investment that can be very rewarding.
However, the business investment comes with its fair share of risks. Therefore, you need to look at the health and safety of both your business and your customers, making restaurant insurance an essential factor. Insurance is a necessary piece of starting a restaurant. This begs the question, “What kinds of insurance do restaurant Owners need in Arizona?”
Arizona has local requirements for restaurant insurance coverage that you need to meet before starting up.
This article will help you learn about the kinds of insurance you need as a restaurant owner in Arizona and the key aspects they cover. It will also help you answer the question, what business insurance do i need for a bar?
What is Restaurant Insurance?
It’s an insurance policy covering a restaurant with components ranging from the physical property to your staff and customers.
In addition to protecting the public’s health that you serve at your restaurant, the coverage should cover any other risk that comes with operating it.
Types of Restaurant Insurance Coverage that Arizonian Restaurant Owners Need
The following insurance types are must-haves for restaurant owners.
1. Commercial General Liability Insurance
Commercial general liability insurance covers you against any bodily injury or negligence-related complaints from third parties.
The restaurant business is susceptible to accidents. For example, your staff may hurt themselves while in the kitchen, or a customer may slip and fall.
If an accident occurs, victims may file a lawsuit against you that may end up hurting your finances.
The great news is general liability insurance will prevent such a scenario from happening, protecting your business from suffering substantial financial losses.
2. Commercial Property Insurance
Commercial property insurance protects your business from losses as a result of property damage.
When you own a restaurant, you cannot predict when a fire, water, break-in, or other potential hazards occur. That’s why you need this type of coverage. It ensures that when damages arise, you can get back to business as soon as possible.
You do not want to close your business for a significant amount of time because you will begin to lose revenue.
There are various property insurance coverages depending on the location and type of policy. A reputable insurance broker or agent will help you get the most suitable coverage for your restaurant.
3. Workers’ Compensation Insurance
It’s an insurance policy that covers both you and your employees in case of an accident. It’s important to note that workers’ compensation insurance is mandatory in Arizona.
No matter how safe your workers try to be, injuries are still likely to occur. With this coverage, the business is not responsible for the hospital bills. Instead, the insurance pays for these. In addition, it may cover a certain percentage of the wages, depending on the accident’s severity.
Remember, hiring new workers is expensive. Therefore, providing the best working conditions will go a long way in helping retain your employees. And with the coverage in place, things can only get better.
4. Commercial Auto Insurance
Commercial auto insurance protects your restaurant against lawsuits related to car accidents from your employees or third parties.
This coverage is crucial for restaurants offering delivery or catering services. Should an accident occur during delivery, it takes care of the damages.
If your employees are doing the delivery using their cars, the policy applies. Note that personal auto insurance is not enough
5. Commercial Umbrella Insurance
Commercial umbrella insurance policies provide additional coverage. That means that if you exhaust all other existing policies, you’ll have more alternatives.
Sometimes you may feel like the existing coverage has some loopholes. Luckily, instead of opening up multiple policies, you can combine them under a single umbrella coverage policy. As a result, it’s more affordable and convenient.
If your general liability, commercial property, workers’ compensation, or commercial auto insurance policy coverage gets to its limits, commercial umbrella insurance acts as a safety net to cover any other extra expenses.
What Insurance Do You Need as an Operating Bar?
Do you need insurance for a bar? Liquor liability insurance is not mandatory in Arizona. Nonetheless, having it may be advantageous because it can fill some gaps in other policies.
For example, this policy will protect you if your waiter or waitress serves a customer who files an alcohol-related charge.
Another reason liquor liability insurance is a good idea is because these policies tend to require stricter training policies and regulations to prevent any accidents.
Therefore, if you’re asking the question, ‘what kind of insurance do you need as an operating bar?’, liquor liability insurance is essential for a restaurant that serves liquor or is small-sized.
Common Exclusions to Restaurant Coverage
No matter how comprehensive the insurance package you get is, there are bound to be some exclusions. A restaurant insurance policy will have the following standard exclusions:
- Equipment wears and tears: When restaurant items eventually wear out from use, the restaurant is responsible for replacing them, not the insurance provider.
- Property maintenance: If the building or property needs some care, the owner caters for it. In addition, damage to property due to natural calamities does not apply in insurance coverages.
- Public policy: Most insurance policies don’t cover law violations, crimes, and intentional accidents or injuries. Covering such incidents goes against public policy. Such intentional, harmful acts that the insured may engage in that a policy will not cover are:
- Assault and battery
- Firing weapons such as guns.
- Sexual harassment
Other liabilities that standard insurance policies do not cover are:
Employment Practices Liability Insurance (EPLI)
A restaurant may purchase employment practices liability insurance (EPLI) to protect the business against claims by employees that the restaurant has violated their legal rights.
The policy will cover you against claims of wrongful termination, discrimination, breach of contract, sexual harassment, emotional distress, false imprisonment, and invasion of privacy.
To protect your restaurant from internet-based risks, you need to have cyber liability insurance.
Depending on the level of risk your business faces, the right insurance will cover costs when your restaurant is liable for data breaches and other cyber securities.
Granted, a restaurant business, like any other business, has its unique risks. In addition, the restaurant’s location, size, and other factors pose additional risks. That means the restaurant insurance coverage costs also vary from one restaurant in Arizona to another. Either way, working with a qualified and reputable insurance broker will help you get the right coverage for your restaurant business.
A restaurant business provides you with numerous opportunities, but you also need to implement a smart approach to managing risks.
Why Work with Arizona Bar and Restaurant Insurance
If you are asking the question, “What business insurance do I need for a bar in Arizona?” than Arizona Bar and Restaurant insurance is the right fit.
Our team will personally review your policies and look to protect your business, while also saving you money with the best A rated insurance carriers in the industry. Since David and his team specialize in the business, they have access to many carriers with whom your standard brokers do not have appointments.
The personal touch, David and his team have an outstanding reputation for being personable and easy to work with.
Contact us today and let us give you the personal touch you deserve and a free quote(s) with no obligation for your bar, pub, brewery, fast food restaurant, fine dining venue, coffeehouse or catering business.