What Types of Insurance Do Restaurant & Bar Owners Need in Texas?

Aug 15, 2022

Business Insurance

What Types of Insurance Do Restaurant & Bar Owners Need in Texas?

Opening a business that serves food and drinks to the public is a big challenge but can pay off if it becomes a community hotspot. When an establishment is an attractive social center, it can thrive from word-of-mouth advertising. In order to shield your assets from potential lawsuits, you'll need the proper restaurant & bar insurance.

Common Lawsuits in Bars and Restaurants

If you plan on opening a restaurant or bar, be aware of the various legal challenges that may arise. Food contamination can lead to multiple lawsuits if patrons get ill from the food they consume at your establishment. Carrying food contamination insurance will pay for such lawsuits. It's also wise to carry liquor liability insurance if your business serves alcohol to the public. This coverage pays for damage or injuries caused by drunk patrons.

Some of the most serious lawsuits against bars involve assault and battery committed by a patron or an employee such as a bouncer. If you want your club to have a vibrant atmosphere, it creates the risk of people pushing and shoving, which can lead to violence. Assault and battery coverage is an add-on type of restaurant & bar insurance that pays for injuries resulting from how your employees deal with brawls.

Also Read: 5 Critical Liabilities Faced by Your Bar or Restaurant Business

Insurance options to protect your restaurants & bars

There are multiple ways to insure your establishment, as every restaurant or bar has specific risks based on location and the crowd it attracts. Here are the most important types of business insurance to consider first:

  • General Liability - Most businesses that frequently interact with the public need general liability coverage to pay for various types of accidents that might occur. This coverage pays for the hospital bills of patrons who slip and fall or get injured in other ways on your property.
  • Commercial Property - If you own the property where your business operates, you'll need a commercial property insurance plan that protects your assets. This policy protects the value of your property from natural disasters, theft, and vandalism.
  • Workers' Compensation - Your business will be required to carry this coverage if it hires employees. This coverage pays for hospital bills and time away from work for employees who are injured or become ill on the job.
  • Commercial Auto Insurance - All states require businesses that own vehicles to insure each vehicle with liability coverage.
  • Commercial Umbrella Insurance - Getting umbrella coverage allows you to extend the coverage limits of your policy in an affordable and convenient way. So if your standard business policy has coverage limits below $1 million, an umbrella plan can get you coverage into the millions.

Common Exclusions to Restaurant Coverage

Exclusions are incidents that are not covered by an insurance policy. If your standard business insurance policy has exclusions, you can often still get coverage through purchasing extensions. Here are typical exclusions found in standard policies:

  • Equipment wears and tears - the restaurant or bar has the responsibility of replacing old equipment.
  • Property maintenance - owners, not insurers, are responsible for routine maintenance of their commercial properties.
  • Public policy - insurance policies usually don't pay for legal costs that pertain to crimes and intentional accidents.

Cover Your Restaurant and Bar with GrayStone Insurance Group

You need an experienced insurance team to help you customize restaurant & bar insurance for your venue. Contact us today at GrayStone Insurance Group, and our expert agents will help you cover your commercial and personal assets with the right insurance policy.


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