With the uncertainties of running a restaurant on a day-to-day basis, general liability insurance for New York businesses is something that no owner can do without. Accidents happen all the time, with both employees and customers, and despite attempts to run a safe establishment, injuries can lead to lawsuits, which in turn can lead to large financial awards.
Commercial general liability (CGL) insurance is designed to cover slips, trips and falls, or any incident resulting in bodily injury, as well as instances involving property damage to others under the care, custody or control of the business owner. Additionally, if someone gets sick and the fault lies in the food they were served this is also covered under this policy. The basic risks covered by the CGL policy include the liability exposures associated with the building and the surrounding premises.
The CGL policy can also protect a business owner from liability arising from injuries or property damage that happens at other locations, such as off-site events that their business may sponsor or cater. So, for example, if equipment used to keep food hot were to accidentally start a fire at a bat mitzvah, most resulting damages would be a covered loss.
Liability insurance can help cover medical expenses, attorney fees and damages that an owner can be found legally responsible for. It can also offer protection against situations that haven’t been considered. Frankly, any restaurant, nightclub or bar is at risk for a liability lawsuit, for any one of dozens of exposures, which could result in losses stemming from judgments, court costs and much more.
Be aware, however, that while a general liability policy offers broad coverage for a number of risks there are exclusions that need to be picked up by other policies or endorsements, such as employment practices liability, directors & officers liability, and cyber liability. An insurance agent can review these all-important coverages for restaurants.
A Business Owner’s Policy is ideal in many situations
Many food service businesses purchase a package policy called a Business Owner’s Policy, or BOP, which combines general liability insurance coverage with property insurance for a single affordable rate.
Every New York general liability insurance policy can be customized and tailored to meet the exact needs of any business through endorsements. Some endorsements will broaden coverage while others will delete or restrict the core insurance coverages.
Just as menus differs from one restaurant another, so does the equipment and operations. Because policies and coverage vary by carrier, it’s helpful to get expert advice on the best insurance options available.