Food service and hospitality business owners know that when it comes to protecting their businesses, every little bit counts. This industry can be highly rewarding and highly profitable to be in, but it is also an industry that is particularly vulnerable to liability claims. That is why a lot of these establishments will improve their underlying policies with umbrella liability insurance. Talk to our expert agents and make sure you are properly covered to avoid costly situations, like disgruntled ex-employee lawsuits, drunk patrons misbehaving, and ill-stricken customers from food poisoning.
Umbrella insurance provides liability protection that “sits” over the other liability policies. It adds more liability insurance, in increments of $1 million, on top of the coverage limits of policies you currently have. If your policy isn’t enough to pay for the damages, lost wages, or medical expenses of an accident or a lawsuit, then an umbrella insurance policy will be able to cover you.
This policy kicks in where your underlying policy’s coverage left off and up to the limit purchased. Restaurant umbrella policies are available to all classifications of restaurants from quick serve to fine dining and can range from $5 million—$250 million limit options to satisfy any restaurant.
Choose umbrella coverage to strengthen any of these policies to protect your business against catastrophes:
This provides coverage for slip and falls that extend to the parking lot, function rooms, and off-site events. Illness or injury that arise from a result of contaminated food is covered as well. Owners of restaurants are exposed to claims related to food contamination or allergies daily. Umbrella insurance will boost your general liability coverage and further safeguard your business.
If your establishment serves alcohol, you must have this. If bodily injury or property damage from a patron can be linked back to your establishment serving them alcohol, this will save you from costly fees. Depending on the claim and damage caused by the intoxicated patron, it could exceed your current policy if you do not have umbrella insurance.
If your general liability policy excludes liquor liability coverage, if you are a BYOB restaurant, you may want to purchase an umbrella policy that includes it. That way, when you are liable for mayhem caused by an intoxicated patron, the umbrella coverage will cover your legal fees. Make sure to read our other article, Liquor Liability for BYOB Restaurants: What You Need to Know and see if you need to add additional coverage to your existing policy.
This provides coverage for claims brought about by allegations of wrongful termination, sexual harassment, discrimination charges, and more. These types of claims are excluded in the general liability policy. When disgruntled ex-employees come back to you with a serious and expensive claim, umbrella insurance will be able to cover the costs that exceed what you currently have.
If you own or lease vehicles, say for your catering business, you already have coverage in force known as employers non-owned and hire auto (NOHA). Auto accidents are the leading cause of liability exposure for many small businesses. If you are involved in a car accident in any way, your business may become an easy target for bodily injury claims that could exceed a million dollars.
Ready to strengthen your business insurance plan with umbrella liability insurance? Contact our experts at H&K today. We can help you decide which business insurance policies will help to further protect your establishment.