Restaurant Insurance Information
Providing Insurance for Restaurants in Manhattan, Brooklyn, Queens, and Long Island in New York.
As a New York restaurant insurance specialist, KJE knows owners' unique challenges. Hot surfaces, kitchen knives, alcohol for purchase, and food safety — are just some of the risks a restaurant faces every day. Restaurant insurance helps minimize your financial risk from lawsuits, failed equipment, and property losses.
What Insurance Coverage Do New York Restaurants Need?
The restaurant business has unique risks that differ from other businesses. Whether you need insurance to protect your pub, smokehouse, diner or steakhouse, we provide coverage to protect your unique operation.
Here is an overview of restaurant business insurance options to help minimize your financial risk from lawsuits, failed equipment, property losses, and more.
- Property insurance offers financial protection if the restaurant’s property (either its building structure or contents) is ruined or damaged in an insurable event such as a fire or theft. Whether you have leaky pipes, a fire, stolen property, or vandals damaging your restaurant, you need to protect your investment. If you are a restaurant owner or renter, you need to insure your property, including your building, signage, equipment, furniture, fixtures, decorative artwork, and inventory.
- Spoilage coverage provides payment if you have an accidental power outage or an equipment malfunction that spoils perishable food.
- Employment practices liability protects against lawsuits for various employee complaints, including discrimination, provided the treatment was not willful.
- Equipment breakdown covers the cost of repair for equipment that has broken down, including cookers, refrigerators, and air conditioning units. It's worth noting that the claim may not be covered if the breakdown occurs due to lack of proper maintenance.
- Workers compensation insurance pays for medical expenses and some lost wages should an employee be injured on the job.
- Business continuation insurance provides ongoing income if your business is forced to shut down. Alternatively, it could pay for some of the temporary relocation expenses for your restaurant.
- If your restaurant has a kitchen fire, your property insurance covers you. With business continuation insurance, you are also insured for lost revenue as your restaurant is restored, allowing you to cover your expenses and pay employees.
- Liquor legal liability insurance helps pay legal expenses and claims brought on by customers who may be injured by an individual who was drinking in your establishment.
- Assault and battery covers the risk of fights or any form of assault by an employee or customer, whether drunk or sober.
- Auto/valet liability covers customers' vehicles while temporarily in valet possession.
- Hired/non-owned vehicle liability covers employee-owned vehicles used for business purposes, like catering or making deliveries.
Restaurants may also be able to secure all-in-one coverage. It is a comprehensive policy tailored to the many risks that restaurant owners face - including reducing restaurant insurance costs.
Liability Issues to Consider When Purchasing Restaurant Insurance in New York
All insurance has liability limits. Your premium is based on the extent of your coverage and the limits of your policy. We work with restaurant owners to explain your coverage – and recommend where you may need coverage beyond the limits of your general liability policy.
For example, your restaurant may cater off-premises. Or, you may have your own delivery staff instead of using a service like Grubhub or Uber Eats. Some policies only cover your restaurant, not claims that occur during an off-site event or delivery. If your equipment starts a fire at a catering hall, or your delivery person causes an accident, you need coverage.
It is also important to consider how much liability coverage you need. Lawsuits and settlements can shut your business down. While you may think you are saving money with a lower coverage limit, paying more for a higher limit to better protect your business may be less expensive in the long run if you have an out-of-pocket claim you must pay.
As a restaurant owner, you work hard to provide the best dining experience for your customers. Comprehensive restaurant insurance coverage is also a key to your success, as these policies can protect you in a variety of situations. Our Restaurant Resource Guide will make it easier to find the information you need to succeed from government and hospitality industry sources.
4 Reasons Why You Need Restaurant Insurance
As an independent agency, we work for you, not the insurance company. We use our relationship with multiple carriers to not only get you the best policy, and make sure your restaurant insurance cost is affordable. Our agents know the restaurant insurance carriers in the New York marketplace. We'll learn about you and your operation, and guide you through the insurance process. Contact KJE Insurance to get right restaurant insurance coverage for your operation at the right price. Or, let's schedule a conversation via Calendly.
- According to the New York City Restaurant Fire Safety Guide: “Fires and hazards in restaurants are common. According to National Fire Protection Association research, an estimated average of around 7,500 structural fires in restaurants with a loss of $165 million are reported each year throughout the US.” During 2017-2021, there were about 200 fires in restaurants in NYC each year.
- According to the Federal Emergency Management Agency (FEMA), the majority of fires happened on Saturday and Sunday. The majority also occurred in the morning. Nearly 60% of the fires were caused by cooking equipment, but failure to clean was a factor in nearly a quarter of these fires.
According to the US Bureau of Labor Statistics, there were 93,800 non-fatal injuries and illnesses in full-service restaurants in 2019. Injuries included burns, cuts, sprains and strains. There were 8,110 cases of cuts and lacerations in full-service restaurants that resulted in days away from work. They occurred at a rate of 23.6 cases per 10,000 full-time workers. The rate for all private industry workers was 7.1.
With rising operating costs for restaurant and consumer lawsuits increasing, it is more important than ever to make the right insurance decisions to reduce premiums while still protecting your business.