Why a Valet Contract Alone Won’t Protect Your Restaurant From Liability

Many restaurant owners believe that a valet contract is a safety net. If something goes wrong, they assume the contract will push all responsibility onto the valet company.

Unfortunately, that belief is often wrong.

While a valet agreement is important, a contract alone does not eliminate restaurant liability—especially when the valet operator is underinsured, non-compliant, or operating at unrealistic rates. Courts and insurance carriers routinely look beyond the contract to determine who is actually responsible.

This article explains why valet contracts are not bulletproof, where restaurants get exposed, and how to properly protect your business.

The False Sense of Security Contracts Create

Valet contracts typically include language that says:

  • The valet company is an independent contractor

  • The valet company assumes responsibility for damages

  • The restaurant is indemnified

On paper, that sounds reassuring. In practice, contracts are only as strong as the company standing behind them.

If the valet operator lacks proper insurance, staffing, or compliance, that contract may offer little real protection.

Why Courts Look Beyond the Contract

When a valet-related incident occurs, courts and insurers often ask broader questions, such as:

  • Who hired the valet company?

  • Who benefited from the service?

  • Did the restaurant exercise reasonable judgment?

  • Was the valet operation legally and financially viable?

If the valet company cannot cover the damages—or disappears entirely—the injured party will look for another responsible party. That often means the restaurant.

A contract does not override negligence or poor vendor selection.

Indemnification Clauses Have Limits

Indemnification clauses are commonly misunderstood.

They do not:

  • Prevent lawsuits from being filed

  • Stop the restaurant from being named in a claim

  • Replace missing insurance coverage

  • Protect against the valet company’s insolvency

If a valet company has no meaningful assets or insurance, an indemnification clause is effectively worthless. You can’t collect from a company that can’t pay.

The “Should Have Known” Problem

One of the most dangerous situations for restaurants is hiring a valet company at a rate that is clearly unsustainable.

If the pricing is so low that it could not reasonably cover:

  • Payroll and payroll taxes

  • Workers’ compensation

  • Garage keepers insurance

  • Supervision and risk controls

Then a restaurant may be found to have constructive knowledge—meaning it should have known the operation was non-compliant.

In these cases, contracts do little to shield the restaurant from liability.

How Insurance Gaps Override Contract Language

Insurance is what actually pays claims—not contracts.

If a valet company’s insurance:

  • Is expired

  • Has exclusions for valet operations

  • Has limits too low to cover damages

  • Does not name the restaurant appropriately

Then the restaurant’s own insurance may be forced to respond, regardless of what the contract says.

This is why insurance verification matters more than contract language alone.

Common Contract Mistakes Restaurants Make

Restaurants frequently expose themselves by:

  • Signing generic or one-page valet agreements

  • Failing to review insurance requirements in the contract

  • Accepting “certificate holder only” status

  • Not updating contracts annually

  • Assuming price equals protection

These mistakes often surface only after an incident—when options are limited.

What a Valet Contract Should Do

A properly structured valet agreement should:

  • Require specific insurance coverages and limits

  • Mandate proof of active coverage

  • Define clear operational responsibilities

  • Outline incident reporting procedures

  • Align pricing with compliance expectations

Even then, the contract must be supported by a legitimate, insured operator.

How MB&L Parking Approaches Contracts the Right Way

At MB&L Parking, we believe contracts should reflect reality—not wishful thinking.

Our agreements are supported by:

  • Fully insured operations

  • Properly classified and trained staff

  • Clear incident procedures

  • Pricing that supports compliance

  • Long-term accountability

For restaurant partners, that means fewer surprises, fewer disputes, and reduced risk exposure.

The Real Protection Strategy for Restaurants

True protection comes from a combination of:

  • A professional, insured valet operator

  • Transparent pricing that supports compliance

  • Verified insurance coverage

  • Clear operational standards

  • A well-structured agreement

No single document can replace responsible vendor selection.

Final Thought: Contracts Don’t Replace Due Diligence

A valet contract is a tool—not a shield.

Restaurants that rely solely on paperwork while ignoring pricing, insurance, and operational realities may still face serious liability when something goes wrong.

Choosing the right valet partner is ultimately the most important decision you can make.

Call to Action

If you currently use valet parking—or are reviewing a valet contract—MB&L Parking can help you reduce risk.

Work with a valet provider whose contracts are backed by real insurance, compliance, and professional operations.

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

Logan Moskovitz