Utah restaurant insurance

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Understanding the requirements of Utah restaurant insurance

Utah doesn’t require you to carry general liability insurance. However, it’s something you shouldn’t overlook. This coverage protects you from claims related to third-party bodily injuries, property damage, and advertising injuries. For example, let’s say a patron slips on a wet floor in your restaurant. In that case, general liability insurance can cover medical expenses and legal fees. Industry standards often recommend coverage of $1 million per occurrence and $2 million aggregate.

General liability protects you against:

Bodily injury claims

Property damage claims

Product liability claims

Advertising injury

In Utah, all businesses with employees are required to carry workers’ compensation insurance. This coverage ensures that if an employee is injured on the job, their medical expenses and lost wages are covered. For example, if a kitchen worker is burned while cooking, workers’ compensation will handle their treatment costs and compensate for any lost income during recovery.

General liability protects you against:

The costs of treatment

Lost wages

Rehabilitation costs

Legal fees related to lawsuits

Utah has a pretty diverse climate. Hot summers, cold winters, and serious storms all mean your restaurant could be damaged, flooded, or even catch on fire. Commercial property insurance protects your building, equipment, and inventory from those threats so that your investment is safe against unforeseen events.

Commercial property insurance will cover things like:

Building and contents

Exterior fixtures

Your restaurant’s inventory

Important business documents damaged in a covered peril

Interruptions to business

If your restaurant serves alcohol, liquor liability insurance is mandatory in Utah. It covers claims related to alcohol-induced incidents, like a patron being overserved and then doing damage or harm afterward. Note that Utah has some specific requirements you’ll need to follow in addition to buying liquor liability insurance. For example, all of your management staff will need to complete an alcohol training and education seminar.

Liquor liability insurance covers things like:

Property damage caused by an intoxicated customer

Bodily damage caused by an intoxicated customer

Legal costs related to lawsuits from alcohol-related incidents

Finally, you’ll want to consider commercial auto insurance. But wait, you say. I don’t own a business vehicle, and I don’t use my car for catering. That might be the case, but if you use your vehicle for anything related to your business, like going to the bank to make a deposit or getting supplies from the store downtown, and are involved in an accident, your personal policy probably won’t cover it. Commercial auto insurance protects you (or your employee), your vehicle, other vehicles involved in the accident, and public and private property that might be damaged.

Here’s why you need commercial auto insurance coverage as a Utah restaurant owner:

Protects you and/or your employees in at-fault accidents

Kicks in if the at-fault driver has too little coverage or no insurance at all

Covers damage to property beyond vehicles (buildings, streetlights, power poles, etc.)

Why choose farmerbrown.com?

At FarmerBrown.com, we understand the unique needs of Utah restaurateurs. Our tailored insurance solutions make sure you have the right coverage to protect your business. We understand that each restaurant is unique, and we’ll work with you to find the right combination of policies and protection.

Our goal is simple: to help you get the peace of mind that only comes from knowing that you, your employees, your restaurant, and your customers are in good hands.

With competitive rates and a deep understanding of local regulations, we’re here to support you every step of the way.

Ready to take the next step? Get in touch for your free quote.

FAQs

Is general liability insurance mandatory for Utah restaurants?

No, it’s not legally required. That said, we highly recommend it. It’s an additional layer of protection against threats that aren’t usually covered by other types of Utah restaurant insurance. Most experts recommend that you carry $1 million in coverage per occurrence and $2 million aggregate.

Do I need workers’ compensation insurance if I have only a few employees?

Yes, in Utah, all businesses with employees must carry workers’ compensation insurance, regardless of the number of employees. There are a handful of exceptions, but they’re for sole proprietorships, certain partnerships, and other businesses that don’t have employees.

Does liquor liability insurance cover incidents off-premises?

Liquor liability insurance typically only covers incidents that occur on your premises. However, some policies may offer endorsements for off-site events. It’s often worth the coverage, particularly if a patron is overserved, leaves your restaurant’s property and causes damage elsewhere (or is involved in an auto accident due to DUI).

Is there insurance to cover delivery drivers?

If your restaurant employs delivery drivers, you’ll need commercial auto insurance or hired and non-owned auto insurance to cover liabilities while they’re on the road. Don’t rely on personal auto insurance, because it likely won’t cover your drivers. Note that there are exceptions to this, but it’s always better to be safe (and legal).