Insurance for Restaurant

Coverages Available For Restaurant

• Property values up to $3,000,000 in protection classes 1–8
  • $250,000 in protection classes 9–10
  • $1,000,000 in coastal zones (excluding wind and hail coverage)
  • Property deductible starts at $1,000
  • Value Enhancement endorsement available
• General liability available up to $1,000,000/$2,000,000
  • Restaurant risks with revenues up to $5,000,000
• General liability deductible is $0
• Liquor liability available up to $1,000,000/$2,000,000
• No cap on annual sales
• Liquor liability deductible is $0

Optional Coverage for Restaurant

• Expense outside the limit
• Coverage available for bodily injury and property damage
• Assault or battery coverage for most restaurants
• Excess general liability or umbrella up to $5,000,000
• Hired and non-owned auto liability up to $1,000,000 (equal to the general liability occurrence limit; not available in MS or VT)
• Equipment breakdown coverage (automatically includes a $250,000 food spoilage sublimit)
• Crime coverage is available

Claim Example for Restaurants

Fire: A local bar was operating out of the insured’s one story frame building. The bar rented two outdoor heating units for their outdoor beer garden. A fight broke out between three patrons and one of the heating units was knocked over. The heating unit fell onto some flammable party decorations and started a small fire. The fire spread to the ceiling of the open- air beer garden and caused extensive damage. The beer garden was closed for the remainder of the season and the roof was repaired at a cost of $15,000.

Wind: A bar owner was running his business out of a newly renovated building, which he owned. A severe windstorm went through the area and tore part of the roof off of the building. The ensuing rain from the storm caused water damage to the flooring of the first story of the building. The insured had to purchase plastic tarps for the roof to prevent further damage from the elements. It took two weeks before a roofing contractor could start repairing the roof. Damages as a result of the storm were $18,000 to repair the roof and floor, $500 for the tarps and $16,000 in business interruption for the month when the bar had to close while repairs were being completed.

Vandalism: A bar owner ran her business out of a building she owned. One weekend night, vandals climbed onto the roof of the building and used a sledgehammer to damage the heating and air-conditioning unit. Damage was also done to the roof of the building where the heating and air conditioning units were located. Later that week the local police apprehended a patron of the bar who was responsible for the vandalism.

Lightning: The insured owns a newly completed bar that had been open for two weeks. One night, severe thunderstorms came through the area. During the storm, lightning hit the building and traveled through the electrical system. A large portion of the electrical system had to be replaced along with some phone equipment and three cash registers. The incident caused over $16,000 in property damage.

Water: The insured ran a small bar/restaurant in a building he had purchased a few years ago. A heavy rainstorm with strong winds passed through the area. During the storm, a large tree branch with leaves fell onto the roof of the building.The leaves and branches clogged the gutter and drain on the roof causing water to enter the insured’s bar/ restaurant. The water damaged all the ceiling tiles inside the building. The damaged tiles cost $4,500 to replace.