South Dakota Restaurant Insurance

While there’s no legal requirement for South Dakota restaurants to carry general liability insurance, it’s a safeguard you shouldn’t overlook. This coverage protects you from claims related to third-party bodily injuries, property damage, and advertising injuries.

For instance, if a restaurant-goer slips on a wet floor in your dining room or bathroom, general liability insurance can cover medical expenses and legal fees. Industry standards often recommend coverage of $1 million per occurrence and $2 million aggregate.

Unlike most states, South Dakota doesn’t require employers to carry workers’ compensation insurance. However, it’s highly recommended. Without this coverage, if an employee is injured on the job, you could be sued in civil court.

If you lose, you’re on the hook not just for damages, but also legal fees. Plus, it’s important to look at workers’ comp as an investment in your employees. It covers medical bills and lost wages for work-related injuries and illnesses, providing peace of mind for both you and your staff.

South Dakota’s weather can be unpredictable, with risks ranging from severe storms to flooding. Commercial property insurance protects your building, kitchen equipment, and inventory from damage caused by such events. This helps your restaurant recover without devastating financial losses if you experience damage from unpredictable weather.

• Building coverage protects your restaurant’s physical structure (owned or leased).

If your establishment serves alcohol, liquor liability insurance is essential. It covers claims related to alcohol-induced incidents, like a patron causing harm after being overserved. South Dakota requires that all businesses that “sell, serve, or provide alcohol to customers” carry liquor liability insurance.

Note that general liability insurance and other types of business insurance don’t usually cover these types of risks. However, because South Dakota is one of eight states without dram shop liability laws, your policy will be less expensive than if you were located in one of the 42 states with strict requirements for businesses that sell and serve alcohol.

Natural disasters or other unforeseen events can temporarily halt your operations. Business interruption insurance compensates for lost income during such periods, helping you cover ongoing expenses like rent and payroll until you’re back on your feet.

Many restaurants have at least one vehicle tied to the business. It might be a catering van. It could be a vehicle that’s used periodically to run to the bank or the local restaurant supply store. Personal auto insurance won’t cover you if you’re involved in an at-fault accident during business-related use, so if you don’t have a commercial auto insurance policy, you could be hit with some pretty significant financial obligations.