Owning a restaurant could be the most rewarding thing you ever do. It can be fun, exciting, profitable, even thrilling. It can also be stressful, exhausting, and frustrating. But, good or bad, it will undoubtedly be fraught with potential liability claims.

It’s well known, across hospitality, that yours is one of the industries most susceptible to liability claims. There are customers who will claim they ate contaminated food in your restaurant; ex-employees who will claim unfair dismissal; underage drinkers who will claim your bar staff are responsible when they get into an accident while under the influence… The list is long and potentially expensive.

Of course, as a conscientious business owner you know that there are insurance policies that will offer you and your restaurant coverage for most eventualities.

If you serve alcohol, you need liquor liability insurance.

If you hire even one employee, you need employer’s liability coverage.

If you deliver food or own a vehicle for fetching food from the market, you will need commercial auto liability insurance.

But what if a claimant wins a suit against your restaurant and the settlement exceeds your specific liability coverage? In recent years restaurants and bars across the country have been faced with settlement costs that have run into the many millions of dollars.

Because of the high dollar value of settlements, today’s restaurant and bar owners are choosing to extend their insurance coverage by purchasing high-limit umbrella policies. An umbrella policy allows them to keep the costs of specific policies manageable while increasing their restaurant’s insurance coverage should it be needed.

There is no question that including an umbrella policy as part of your restaurant’s insurance package can be a smart way to increase your protection while still keeping costs down. But it’s worth discussing the pros and cons with your broker before you buy.

An umbrella policy may or may not be compatible with your other policies; it may not give coverage for everything you think it does; it may, in fact, exclude the one area—such as liquor liability—that you are most afraid you’ll encounter.

With guidance and informed research, you will find the right umbrella for your restaurant and, once you have it as part of your insurance portfolio, ride out the liability storm with confidence.

Find out more about an umbrella policy and contact Vozza Agency for restaurant insurance coverage in New Jersey.