Third-party practices liability coverage is more important than you might think. At your dining establishment, you and your staff interact directly with customers each and every day. Unfortunately, we live in a litigious society, thus you and your restaurant are always at risk of some sort of lawsuit, regardless of who is at fault. Third-party practices liability coverage can help you better protect your restaurant from a costly lawsuit.
What is Third-Party Practices Liability?
Third-party practices liability covers your dining establishment or business in the event that a patron of your business decides to sue your establishment. If this happens, third-party practices liability coverage will kick in to ensure your business does not drown in legal fees and all the other associated costs of a lawsuit. When a company is sued, especially dining establishments, the costs are often too much for the business to prevail. Third-party practices liability may very well be the coverage that ensures your business thrives well into the future.
How is Third-Party Practices Liability Different From EPLI?
Employment practices liability insurance (EPLI) is similar to third-party practices liability, which is why many people question why they would need both coverages. EPLI covers the restaurant or dining establishment in the event that an employee decides to sue or bring legal action upon the business. This is an all-too-common occurrence and definitely needs to be a part of your overall coverage in any type of business. Third-party practices liability covers your business in the event that a patron of the restaurant decides to file a lawsuit. In short, the difference between these two coverages is dependent upon who is suing the dining establishment – an employee or a patron. In either situation, some sort of coverage is ideal to prevent having to close your doors for good.
Who Needs Third-Party Practices Liability?
Some businesses may not require this insurance if there isn’t much one-on-one interaction with patrons. In the food service industry, however, your employees are constantly in contact with patrons, making the likelihood that you will need this insurance much higher. Now, you may be thinking that you and everyone on your staff is always on their 100-percent best behavior and would never attract a lawsuit. Think again. Even in cases when no one on your staff is at fault, a lawsuit-happy customer can still press charges. Even if your establishment legally is found to have done nothing wrong, your business still could take on a tremendous amount of debt due to legal fees and other added costs. Third-party practices liability safeguards the business you have worked so hard to build.
How to Secure Third-Party Practices Liability Coverage
If you own a restaurant – whether it be fast food, a formal dining establishment or a catering service – your business is at risk without third-party practices liability coverage. If you would like to learn more about securing this coverage, contact the professionals at Restaurant Programs of America (RPA) today. At RPA, we have a sole focus on the food service industry, ensuring our clients have all of the necessary coverages to maintain longevity and profitability for a very long time. Unlike other insurance companies that span many industries, we understand the complexities of owning a dining establishment and determine the cost-effective coverages you need.