The locals know your restaurant and bar as a place to have a great time. But, wouldn’t you know, there always has to be at least one person who ruins it for everyone else. From the customer who has a few too many and punches out another customer to the person who causes an accident on the way home from your bar, it seems there is no shortage of risk in this industry. You would be absolutely right to think that, and the truth is the risks of owning a bar and restaurant do not stop there.
The tips below represent our collective wisdom after several years of helping bar and restaurant owners protect their investment.
Enjoying a few alcoholic beverages with family or friends in moderation is a perfectly socially acceptable thing to do. The problem is that some people fail to understand what moderation means, and their lack of judgment could spell financial disaster for you. It only takes a single personal injury lawsuit that does not go your way to wipe out your business. Arnold Insurance Company (AIC) would hate to see that happen.
You still face plenty of risks even if you own a restaurant that does not serve alcohol. From an employee tripping while carrying a plate of hot food to a cook’s apron starting on fire, the restaurant industry can be a hazardous one.
As an executive with AIC in Alexandria, LA, Wade Dickson recommends that you take a regular risk assessment of your bar or restaurant. He can come to your place of business to review the risk assessment with you and recommend safety improvements. He will then work with you to lower your risks as much as possible and recommend a bar or restaurant insurance policy for financial protection and peace of mind.
While you save money on premiums by going with the least expensive plan available, it may not provide replacement value for everything you need. Some restaurant owners opt for the highest deductible plan to save money on premiums. This can be a good idea, but only if you are certain that paying the deductible would not have a negative impact on your business cash flow. You need to weigh all financial resources you have available against the risks you are willing to take should you need to file a bar or restaurant insurance claim.
We also cannot stress enough the importance of working with an experienced agent like Wade Dickson when choosing financial protection for your bar or restaurant. An agent who sells only general business insurance will not understand the unique needs and risks of the hospitality industry. This could result in recommendations that do not do nearly enough to reduce your risk and provide reimbursement at a time you are truly counting on it.
Be sure you know what you are signing when it comes time to purchase your bar or restaurant insurance policy. We get it, these documents can be long and uninteresting, to say the least. Unfortunately, taking the speed reading or skimming approach could backfire when you assume that you have a certain amount or type of coverage that you really do not have.
Insurance Executive, Wade Dickson at our Louisiana branch has several years of experience meeting the insurance needs of the hospitality industry. Please contact him here to request a consultation. For all other markets, click the button below!
Arnold Insurance knows that small business can be a risky endeavor. Learn more about what the right kinds of coverage are for a small business by downloading our free eBook: "Small Business Guide to Proper Insurance Coverage."