From slip-and-fall accidents to food contamination and foodborne illnesses, liquor-related incidents, and on-the-road liability, restaurants face a myriad of exposures in the course of performing their daily business activities. Underlying policies such as General Liability, Liquor Liability and Automobile Liability insurance provide the first layer of coverage restaurants require to protect their assets in the event of a loss. Too often this is not enough to respond to catastrophic losses. Umbrella protection should be an integral component in an insured’s insurance program in order to expand the amount of liability coverage the business carries after its primary limits are exhausted, particularly prudent for losses that result in a multi-million-dollar settlement or judgment. Even losses that don’t run in the mid to upper seven figures can wipe out the balance sheet of a restaurant without the proper commercial restaurant insurance limits.

High-limit Umbrella commercial restaurant insurance is designed to step in and provide the proper financial security and peace of mind establishments need in today’s litigious landscape. For example, one lawsuit against a Florida restaurant resulted in a $70 million settlement for a 20-year-old woman who suffered severe traumatic injuries in a car accident. The bartender at the restaurant illegally served her alcohol and the establishment was found to be negligent and in breach of its duty. In another case a restaurant patron, while walking to her table near the service area of the bar, slipped and fell on a liquid substance. She asserted the restaurant was negligent in allowing the bar area to contain a hazardous condition and in failing to post warning signs or to take reasonable steps to eliminate the hazard. She sought damages for her injuries and medical expenses, and was awarded a confidential seven-figure settlement that included her medical costs and past and future suffering as well as for loss of enjoyment of life up to the date of the verdict.

Of course, there are also the lawsuits against Chipotle in the wake of its high-profile food contamination outbreak that affected up to 700 people last summer. While any potential settlements are confidential, the reputational damage to Chipotle in the aftermath of its latest outbreak is of great concern to the Mexican eatery. In 2018, Chipotle’s shares dropped 6% with the chain once again having to confirm its commitment to food safety. Last year’s outbreak was the seventh time in two years the company has faced a food-contamination crisis. A strong Umbrella restaurant insurance policy provides the crisis response coverage required to help manage the PR involved in such an incident.

How much Restaurant Umbrella insurance an establishment should purchase will depend on the extent of its operation and exposures, assets at risk, and other factors. Umbrella amounts in a high-limit program are available up to $140 million and typically sold in multiples of million-dollar increments.