Serving Up Protection: Why Louisville Restaurants & Bars Need More Than a “Standard” Policy

Louisville is a foodie city. From the legendary steakhouses downtown to the hip taco spots in Nulu and the dive bars in Germantown, our hospitality industry is the heartbeat of the local economy.

But running a restaurant or bar is not for the faint of heart. You are dealing with open flames, sharp knives, slippery floors, and—perhaps the biggest risk of all—alcohol.

At Dick Watts Insurance, we have spent decades protecting the businesses that feed our community. We know that a “standard” business policy often leaves massive gaps that can destroy a restaurant. Here is what you need to know about protecting your establishment.

The 800-Pound Gorilla: Liquor Liability

If you serve alcohol, you are exposed to Liquor Liability. Many owners mistakenly believe their General Liability policy covers alcohol-related incidents. It almost never does.

Kentucky has specific laws (often called “Dram Shop” laws) regarding the service of alcohol. If a patron leaves your bar intoxicated and causes an accident, your business can be named in the lawsuit.

• The Risk: A $15 cocktail could turn into a $2 million lawsuit if a customer injures someone on the drive home.
• The Solution: We write specialized Liquor Liability policies that protect your assets from these specific claims. We can also help you with risk management training for your staff (like TIPS certification) which can sometimes lower your premiums.

The “Silent” Killer: Assault & Battery Exclusions

This is the most common “gotcha” in bar insurance policies. Imagine this scenario: A fight breaks out at your tavern on a Friday night. Your bouncer steps in to break it up and injures a patron in the process. The patron sues you for “Assault & Battery.”

The Trap: Many bargain-basement insurance policies have an Assault & Battery Exclusion. This means if a fight happens, you have zero coverage. You are paying legal fees out of pocket. The Dick Watts Fix: We work with carriers who specifically include Assault & Battery coverage. We know that in the nightlife industry, physical altercations are a real risk, and you deserve to be protected, not abandoned.

When the Freezer Dies: Spoilage & Equipment Breakdown

For a restaurant, your inventory is your cash. If a storm knocks out power to your walk-in freezer for three days, you could lose $10,000 worth of wagyu beef or seafood.

• Spoilage Coverage: Pays to replace the food that spoiled.
• Equipment Breakdown: Pays to repair the freezer motor itself (which standard property insurance often excludes as “wear and tear”).
• Business Income: Keeps the lights on and key staff paid while you are closed for repairs.

Why Independent Agents Eat “Direct Writers” for Lunch

When you buy insurance from a “1-800” number or a captive agent, you are often getting a policy designed for a retail store, shoe-horned to fit a restaurant. They might not understand the difference between a “fast casual” spot and a “late-night tavern.”

As a Local Independent Agent, we have access to niche markets that love restaurants.

• New Ventures: We have markets for brand new restaurants with no track record.
• Late Night: We can insure bars that stay open until 4 AM.
• Live Music Venues: We can cover the unique liability of hosting bands and crowds.

Don’t Let One Bad Night Close Your Kitchen

You’ve poured your heart (and savings) into your menu and your atmosphere. Don’t let a slip-and-fall or a liquor claim shut your doors.

Whether you run a high-end bistro or a neighborhood pub, you need an agent who understands the menu of risks you face. Call Dick Watts Insurance at (502) 245-3625. Let us handle the risks so you can focus on the food.

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