Restaurant Valet Liability FAQ

Restaurant owners frequently assume valet liability is simple: the valet company is responsible. In reality, valet-related claims are one of the most misunderstood risk areas in hospitality.

Below are clear answers to the most common questions restaurant owners, general managers, and operators ask about valet parking liability.

Are restaurants legally responsible for valet parking damage?

Yes—restaurants can be held partially or fully liable for valet-related damage, theft, or injury in certain situations.

Even if the valet company is an independent contractor, restaurants may share liability if they:

  • Benefited from offering valet service

  • Approved or controlled the valet operation

  • Failed to exercise reasonable judgment when selecting the valet provider

Liability often depends on the facts surrounding the relationship—not just the contract.

Isn’t the valet company always responsible for vehicle damage?

Not always.

While the valet company may be the primary party responsible, restaurants are often named in claims because:

  • The restaurant hired the valet company

  • The valet service was offered as part of the dining experience

  • The valet company lacked proper insurance or compliance

If the valet company cannot pay—or insurance coverage is denied—the restaurant may become the next target.

Can a restaurant be liable even if there’s a valet contract?

Yes.

A valet contract does not automatically protect the restaurant from lawsuits or insurance claims. Courts and insurers frequently look beyond the contract to determine:

  • Whether the valet operation was safe and compliant

  • Whether the restaurant “should have known” there were risks

  • Whether proper insurance coverage existed

Contracts do not override negligence or poor vendor selection.

What does “should have known” mean in valet liability cases?

“Should have known” refers to constructive knowledge.

If a restaurant pays a valet rate that is clearly too low to cover:

  • Payroll and payroll taxes

  • Workers’ compensation insurance

  • Garage keepers insurance

  • Supervision and risk management

A court may find that a reasonable business owner should have known the operation was unsafe or non-compliant—creating shared liability.

Does cheap valet pricing increase restaurant liability?

Yes—significantly.

Unrealistically low valet rates are one of the biggest red flags in liability cases. They often indicate:

  • Uninsured or misclassified workers

  • No workers’ compensation coverage

  • Inadequate or missing garage keepers insurance

  • Lack of supervision or training

When incidents occur, pricing is frequently examined as part of the restaurant’s due diligence.

What insurance should a valet company carry?

At a minimum, a professional valet company should carry:

  • Garage keepers liability insurance

  • Workers’ compensation insurance

  • General liability insurance

  • Commercial auto insurance (if company vehicles are used)

Restaurants should always request proof of coverage and review policy limits and exclusions.

Is being a “certificate holder” on insurance enough?

Not always.

Being listed as a certificate holder only confirms the policy exists. It does not guarantee protection.

Whenever possible, restaurants should request to be listed as an additional insured, which can provide stronger protection if a claim involves both parties.

What happens if the valet company has no insurance?

If insurance is missing, expired, or denied:

  • Guests may sue the restaurant directly

  • The restaurant’s insurance may be forced to respond

  • Legal defense costs can increase dramatically

  • Insurance premiums may rise or coverage may be dropped

In these cases, contracts and indemnification clauses offer little protection.

Can a restaurant’s own insurance deny a valet-related claim?

Yes.

Restaurant insurance policies may:

  • Exclude valet-related incidents

  • Limit coverage for third-party contractors

  • Require proof of vendor insurance

If proper due diligence was not performed, the restaurant may face uncovered losses.

How can restaurants reduce valet liability risk?

Restaurants can significantly reduce risk by:

  • Vetting valet companies carefully

  • Avoiding unrealistically low pricing

  • Verifying insurance coverage annually

  • Working with established, compliant operators

  • Documenting vendor selection decisions

Choosing the right valet partner is one of the most effective risk-management decisions a restaurant can make.

How does MB&L Parking help protect restaurants?

At MB&L Parking, valet operations are built around:

  • Fully insured services

  • Trained and supervised attendants

  • Transparent, defensible pricing

  • Clear incident reporting procedures

  • Long-term accountability to restaurant partners

Our goal is to enhance guest experience without exposing restaurants to unnecessary liability.

Call to Action

If your restaurant currently offers valet parking—or is considering it—MB&L Parking can help you reduce risk.

📞 201-414-1255
📧 info@mblparking.com
🌐 mblparking.com

Logan Moskovitz