Why Restaurants Need Premises Liability Insurance

Restaurant owners have a lot of responsibilities. Preparing quality food, staffing appropriately and maintaining a clean dining room are often top of the list. There is one aspect of restaurant ownership that may be overlooked: having the right premises liability insurance.

What Is It?

It’s important for any business owner to carry premises liability insurance. This type of insurance will kick in when a patron has an accident (most commonly a slip, trip or fall). Coverage may also be used in the case of a fire, crime or other accident, such as a falling ceiling tile or broken chair.

What Is Duty of Care?

As a business owner, you’re responsible for providing a safe environment for your patrons. This concept is known as duty of care. Under this concept, you must maintain the property or notify guests when a situation could be dangerous. If a claim is made against your business that finds you negligent in your duty of care, you could be liable for the injury.

How Can I Avoid an Insurance Claim?

Regular maintenance is critical. This often includes salting the sidewalks in icy weather, fixing loose railings, replacing broken furniture and filling parking lot holes. If a dangerous situation does arise, you need to clearly disclose the issue to your customers.

Despite your best efforts, accidents can happen. Having the right liability insurance is essential for keeping your business safe from claims and adverse financial events that may follow.