We’ve put together a list of the different types of restaurant insurance coverage you should have that will actually make sense to you! As much as possible, we’ve removed the insurance lingo and just given you the bottom line. With this, at the very least, you’ll know what to ask for and make sure you’ve got it.

The Basics of Restaurant Insurance

(In terms that non-insurance geeks can understand.)


We’re starting with an easy one, this is basic and pretty self-explanatory. Property insurance coverage takes care of things when there is damage to your property – natural or man-made. So, if heavy winds knock stuff around and damage the outdoor dining space (natural), or if someone accidentally drives through that same outdoor dining space (man-made), property insurance makes sure you’re covered in either of those situations.

Business Income Loss

This is important, so pay attention here. Things can happen that are completely out of your control and as a result, your business (INCOME) is severely impacted. For example, let’s say there’s a bad storm, power lines are down over a mile away, but you’ve still got no power. Your business is shut down and losing income by the hour. This is the coverage that covers your loss of business income.

TIP: Most events like this get resolved within 72 hours – and insurance companies know this – so most policies only kick-in on hour 73. Make sure you ask for coverage from hour 1!


As the name implies, liability insurance covers those things that you are liable/responsible for if something happens at your place of business. Maybe someone slips on the floor or you got a case of beautiful but contaminated lettuce that makes a few people sick. That kind of ‘stuff’ happens, mostly through no fault of your own but you’re still responsible. Business owners are a courageous breed, liability insurance helps.

FYI: Many restaurant liability policies don’t cover food contamination!!! Check and make sure you’re covered.


Everyone knows what automobile coverage is. If your business owns a vehicle or if your employees are using their cars for work, you need auto insurance to cover both you and your employees. You may ask why do I need to cover vehicles that I don’t own? Because you may be liable for any damages incurred by your employees while they are driving their own car while performing their job. Their personal auto policy may not cover you or they may have limits that will not effectively protect your business. It’s a simple fix. Let’s just make sure it’s done right.

Worker’s Compensation

This is how you make sure your staff is taken care of if they get hurt on the job. You want to make sure you’ve got adequate coverage both for your employees and yourself.

Regulatory Protector

Starting in 2019, every restaurant in New York will need to provide everyone on staff sexual harassment training. It’s important and something you’ll make every attempt to comply with. But let’s say someone slips through the cracks, doesn’t get the training and that person happens to be a real jerk. His or her bad behavior could cause problems for you as a business owner. That’s why businesses, especially restaurants need a regulator protector policy.

Cyber Liability

This is our new reality; cyber liability protection is a must for restaurants today. In some form, almost every business will get hacked at some point. It’s a nasty thing when someone hacks you and steals customer credit card information. The law requires you to go through an extensive notification and compensation process. It’s not only expensive, but it’s also extremely time consuming. Cyber liability coverage takes care of everything, including notification and compensation.

Check What You’ve Got

If you’re getting restaurant insurance for the first time or renewing your policy, it’s important to understand what you need and your options. Talk to us if you have any questions or need your policy reviewed.