Why Do Restaurants Need To Consider Public Liability and Product Liability Insurance*?
Public Liability insurance* is designed to protect your restaurant business from the financial impacts if you face allegations of negligence for injuring a third party or damaging their property. Legal costs in defending a covered claim will also be included. It is a wise type of insurance for any restaurant to consider.
Product Liability insurance * usually forms part of a Public Liability policy and is important for restaurant businesses to also think about including in their insurance plan.
Product liability cover provides protection in relation to claims by third parties due to personal injury or property damage caused by products sold or supplied by your business. Reasonable costs incurred in defending a covered claim will also be met. For example, if your customers were to experience food poisoning from the food you provided, not only could you be faced with one claim for damages, but multiple claims from impacted customers.
The associated legal costs of defending a claim, even if you are not liable of negligence, could put both your business and personal finances at risk, potentially causing your business to close and hang up the knives for good.
Public Liability insurance provides peace of mind and financial protection, because it can cover your legal and defence costs, court attendance costs and compensation awarded to the claimant.