Assault and battery incidents at restaurants - whether involving customers, employees, or third parties - create serious liability exposure. What many restaurant owners don't realize is that standard general liability policies often exclude assault and battery claims. Understanding this gap and how to fill it is critical, especially for bars, nightclubs, and restaurants with significant alcohol service.
The Assault and Battery Exclusion
Most standard general liability policies contain an assault and battery exclusion. This means claims arising from:
- Physical altercations between customers
- Assaults by employees against customers
- Injuries during ejections or crowd control
- Criminal assaults on premises
...are specifically excluded from coverage. You could face a lawsuit with no insurance to defend you or pay damages.
Why the Exclusion Exists
Insurance carriers exclude assault and battery for several reasons:
- Predictable losses: Certain venues have high assault frequencies, making losses predictable rather than fortuitous
- Moral hazard: Coverage could reduce incentive to prevent violence
- Large claims: Assault claims often involve serious injuries with high damages
- Criminal conduct: Insurance typically doesn't cover intentional criminal acts
Who Needs Assault and Battery Coverage?
Any restaurant with these characteristics should strongly consider assault and battery coverage:
- Alcohol service: Especially bars, nightclubs, and restaurants with significant bar revenue
- Late-night operations: Hours past midnight correlate with higher incident rates
- Entertainment: Live music, DJs, dancing increase crowd energy and risk
- Security presence: If you employ bouncers, you need coverage for their actions
- Urban location: Higher foot traffic and crime rates increase exposure
- History of incidents: Prior altercations indicate ongoing risk
Getting Assault and Battery Coverage
There are several ways to obtain assault and battery coverage:
1. Assault and Battery Endorsement
Some carriers offer an endorsement that adds assault and battery coverage to your general liability policy. This is often the simplest and most cost-effective option.
- Advantages: Simple to add, coordinates with your GL policy
- Disadvantages: Not all carriers offer it, may have sublimits
2. Liquor Liability with A&B
Some liquor liability policies include assault and battery coverage, recognizing that alcohol and violence often go together.
- Advantages: Addresses related exposures together
- Disadvantages: Only covers alcohol-related incidents
3. Standalone Assault and Battery Policy
For high-risk venues (nightclubs, late-night bars), standalone assault and battery policies may be necessary.
- Advantages: Higher limits, broader coverage
- Disadvantages: Higher cost, separate policy to manage
What A&B Coverage Typically Covers
- Bodily injury claims from physical altercations
- Medical expenses for injured parties
- Legal defense costs
- Settlements and judgments
- Injuries during reasonable ejection of patrons
- Claims against security personnel
What A&B Coverage Typically Excludes
- Intentional acts by owners: If you personally assault someone, no coverage
- Criminal prosecution: Coverage is for civil liability, not criminal defense
- Property damage: Usually limited to bodily injury claims
- Excessive force: Security using unreasonable force may not be covered
Risk Management for Assault Prevention
- 1.Security staffing: Trained security personnel during high-risk hours
- 2.ID verification: Prevent underage patrons who may be more volatile
- 3.Alcohol management: Train staff to recognize intoxication and cut off service
- 4.Crowd control: Manage capacity, sightlines, and choke points
- 5.Incident documentation: Keep detailed logs of all incidents
- 6.Camera systems: Video documentation helps defend claims and deter behavior
- 7.Ejection protocols: Written procedures for safely removing patrons
Frequently Asked Questions
What if a customer assaults another customer?
You could face a 'negligent security' claim if the victim argues you failed to provide adequate security, prevent known dangers, or intervene appropriately. This is where assault and battery coverage is critical.
What if my bouncer injures someone during an ejection?
This is exactly what A&B coverage addresses. Your security personnel acting in their scope of employment creates vicarious liability for you. Coverage extends to reasonable force used in ejections, but excessive force may be excluded.
How much does assault and battery coverage cost?
Costs vary widely based on your venue type, hours, location, and claims history. For a restaurant with moderate bar business, an A&B endorsement might add $1,000-$3,000 annually. Nightclubs can pay $10,000-$50,000+ for standalone coverage.