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How to Get 4 Common Restaurant Risks Covered

The success of your restaurant depends on hard work and ingenuity. Restaurant insurance helps protect the effort and money you’ve invested in your business if there ever were a disaster. But because restaurants are so diverse, you should consider a variety of optional coverages too. These extras are purchased and added to your business insurance policy as endorsements. Here’s how to cover four common restaurant risks with endorsements:

  1. Liquor liability coverage
    Let’s say a customer leaves your restaurant and is involved in an accident. In some instances, alcohol served at your restaurant may be considered a contributing factor to the accident. When you purchase liquor liability coverage, you’re provided with liability protection for legal costs and potential liability payments related to lawsuits (up to the policy limits).

  2. Power or mechanical failure
    An incident that causes major food spoilage can be devastating to your business. Get coverage for your food inventory in the event that it is ruined as a result of either a power or a mechanical failure to refrigeration equipment. 

  3. Employment practices liability 
    These days, hiring, firing and day-to-day employee management can be risky business. You’d like to think that your employees would never dream of filing a claim or suit against you or your business for discrimination, wrongful termination, harassment or sexual harassment. Unfortunately, it does happen. Responding to claims or suits like these will require time and money.

    With Employment Practices Liability Coverage, you will not have to face an employment claim on your own. It can help protect you against liability damages and cover defense costs. 

  4. Data breach
    Your customers’ credit card information is stolen while in your care, which legally requires you to take action. Most states have breach notification laws that not only require a business owner to inform any affected individuals (customers) of a data breach but also specify the manner and period in which the business owner must inform customers. (With Erie Insurance, business data breach coverage is available for purchase on select policies. Ask an agent for more details.)

    Here are coverages you may want to consider:
  • Data Breach Response Expenses: It could cover the expenses you incur when notifying affected individuals of a breach per state laws.
  • Data Breach Liability Coverage: It could cover damages that you are legally obligated to pay when your customers’ nonpublic personal information that is lost, stolen or accidentally released is used fraudulently. It also covers the cost to defend lawsuits seeking damages.

Your restaurant needs protection provided by a company and insurance advisor that you can trust. You can count on Erie Insurance and our agents to help protect the business that means so much to you. As an ERIE customer, you also have access to risk control tools and services to help you identify and reduce common business risks. Talk to an ERIE agent to learn more.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.