Alabama Restaurant Insurance

Types of Restaurant Insurance Coverage

There are several types of insurance coverage that restaurant owners in Alabama should consider. Each type covers different risks associated with running a restaurant.

General Liability Insurance

General liability insurance is a must-have for any business, including restaurants. It covers legal costs and payouts if your restaurant is sued for things like customer injuries, property damage, or advertising injuries.

For example, if a customer slips and falls in your restaurant and decides to sue, general liability insurance would cover the legal fees and any settlement or court-ordered payout. Without this coverage, you would have to pay these costs out of pocket.

Property Insurance

Property insurance covers damage to your restaurant's physical structure and its contents due to events like fire, theft, or natural disasters. This coverage is essential whether you own or lease your restaurant space.

For instance, if a kitchen fire damages your restaurant, property insurance would cover the costs to repair the building and replace damaged equipment and furnishings. Without this coverage, you would have to bear these costs yourself.

Workers' Compensation Insurance

In Alabama, if you have five or more employees, you're required by law to carry workers' compensation insurance. This coverage pays for medical expenses and lost wages if an employee gets injured or sick because of their job.

For example, if a chef cuts their hand while preparing food and needs medical attention, workers' compensation insurance would cover the medical bills and any wages the chef loses while they're unable to work.