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Understanding Restaurant Insurance in New York
As a restaurant owner in New York, you know the key ingredients for success – incredible food, outstanding service, and an ambiance that keeps ’em coming back for more.
But have you considered one crucial ingredient that can make or break your business? Insurance.
Without the right restaurant insurance in New York, one unexpected incident could leave a sour taste that spoils everything you’ve worked for.
At The Allen Thomas Group, we are a top-rated insurance agency that understands the unique risks restaurants face every day, from hungry customers to wet floors to spoiled ingredients.
That’s why we’ve cooked up comprehensive commercial insurance solutions that cover your business insurance needs to protect your business and keep it running smoothly.
So what are you waiting for?
Get a quote for your small business!
Table of Contents
How much does restaurant insurance in New York cost?
There’s no one-size-fits-all answer to how much restaurant insurance costs in New York. The price can vary significantly depending on several factors:
- Location: Restaurants in high-traffic areas or with higher crime rates may pay more for insurance.
- Type of Cuisine: Fine dining establishments typically have higher insurance costs compared to casual cafes due to the value of equipment and potential for foodborne illness claims.
- Alcohol Service: Restaurants serving alcohol require liquor liability insurance, which adds to the overall cost.
- Delivery Services: Delivery operations require commercial auto insurance, impacting the premium.
- Size and Revenue: Larger restaurants with higher revenue tend to have higher insurance costs.
- Claims History: Restaurants with a history of claims will likely pay more for insurance.
Business insurance for restaurants in New York can range from $1,750 to $5,000 per year, with an average around $3,000.
Why Restaurant Insurance in New York is Crucial?
Protect against costly lawsuits
According to the National Restaurant Association, the average cost of a slip-and-fall claim for a restaurant is around $20,000. With general liability insurance, restaurants can protect themselves against such costly lawsuits arising from customer injuries or accidents on their premises.
Comply with state regulations
In New York, workers’ compensation insurance and liquor liability insurance (if serving alcohol) are mandatory. Failure to carry these coverages can result in hefty fines and penalties. For instance, the maximum fine for not having workers’ compensation insurance in New York is $2,000 for every 10-day period of non-compliance.
Safeguard against foodborne illnesses
The Centers for Disease Control and Prevention (CDC) estimates that foodborne illnesses cost the United States over $55 billion annually. With general liability and product liability insurance, restaurants can protect themselves from lawsuits and expenses resulting from foodborne illness outbreaks.
Recover from disasters and business interruptions
According to the National Restaurant Association, 40% of restaurants fail to reopen after a disaster. Business interruption insurance can help restaurants recover financially and continue operations after events like fires, natural disasters, or forced closures by health departments.
Protect against alcohol-related incidents
In New York, the Dram Shop Law holds establishments liable for serving alcohol to visibly intoxicated patrons. Liquor liability insurance can cover legal fees, settlements, and judgments arising from such incidents, which can be costly for restaurants without proper insurance protection.
By having the right restaurant business insurance options, business owners in New York can mitigate the financial risks associated with lawsuits, comply with state regulations, and better protect your business and income from various perils, ensuring long-term sustainability.
Types of New York Business Insurance Coverage
General liability insurance covers your restaurant from third-party claims of bodily injury, property damage, or advertising injuries that occur on your premises or as a result of your operations.
A crucial part of the best restaurant insurance package, this insurance provides coverage for your business in case a customer slips and falls, suffers from food poisoning, or if your advertising inadvertently causes harm to someone else’s reputation or intellectual property.
This insurance helps pay for damages.
General Liability Insurance: $500 – $2,500 annually
This insurance offers financial protection in the case of lost wages. Insurance pays for medical expenses for workers who sustain job-related injuries or illnesses.
It also protects your restaurant from lawsuits filed by injured employees, ensuring compliance with state laws and regulations.
$600 – $10,000 annually (highly dependent on payroll size and job risk)
You need business property insurance to protect your business and its physical assets, including the building, furniture, equipment, and signage.
It covers damage caused by various perils, such as:
- Fire
- Theft
- Vandalism
- Weather events (depending on policy)
If a fire breaks out in your kitchen and damages ovens, refrigerators, and countertops, your business may benefit from commercial property insurance.
Many restaurants have benefited from this policy that can pay for repairs or replacements and protect your small business.
This coverage protects your vehicles in the event of accidents, theft, and vandalism, as well as provides liability coverage for bodily injury or property damage caused by your drivers while operating the vehicles for business purposes.
If your restaurant or bar serves alcoholic beverages, liquor liability insurance is crucial.
This insurance for restaurants protects you from claims arising from incidents involving intoxicated patrons, such as fights, property damage, or accidents caused by overserved customers.
Liquor liability insurance is often required by state and local authorities as a condition for obtaining a liquor license.
Liquor Liability Insurance: $300 – $3,000 annually (can vary significantly depending on liquor sales volume)
This is not a standalone policy but often an add-on coverage to your commercial property insurance or BOP specifically for perishable inventory. It covers:
- Spoilage of food due to power outages or equipment breakdown
- Costs associated with a foodborne illness outbreak, including:
- Medical expenses for sick customers
- Product recall
- Lost business income due to closure
Also known as errors and omissions insurance, business liability insurance offers protection for your restaurant from lawsuits alleging negligence that leads to customer injuries or illnesses.
Business owners must take liability coverage, including professional liability insurance, to secure their restaurant from claims of negligence.
For example, a customer gets sick from undercooked food at your restaurant and sues you for negligence.
Liability insurance can help cover your legal defense costs.
In today’s digital age, restaurants are increasingly reliant on technology for operations, such as point-of-sale systems, online ordering, and customer data management.
Cyber insurance helps protect your business from the financial and legal consequences of data breaches, cyber-attacks, and other cyber-related incidents, which can be costly and damaging to your reputation.
A BOP is a bundled policy combining essential coverages for businesses like restaurants, including:
- General Liability Insurance
- Commercial Property Insurance
- Business Interruption Insurance
BOP policies are often more affordable than purchasing each coverage separately.
Umbrella insurance is an extra layer of protection in the event a lawsuit exceeds the limits of your New York restaurant insurance policy.
Is a certificate of insurance necessary for restaurant business in New York
In New York, a certificate of insurance is necessary to prove that your comprehensive restaurant insurance needs are fulfilled. Here’s a breakdown:
Liquor Liability: If your restaurant serves alcohol, you will need liquor liability insurance as part of your restaurant insurance program. As part of obtaining a liquor license, the state will likely require you to provide a certificate of insurance showing you have the required amount of liquor liability coverage.
Landlord Requirements: Some landlords may require tenants, including restaurants, to carry certain types of insurance, such as general liability insurance. They might ask you to provide a certificate of insurance as proof of coverage.
Other Situations: While not universally required, a certificate of insurance might be requested in other situations. For example, if you participate in a special event or use a shared kitchen space, they might require proof of insurance.
Insurance Solutions Customized For You
We know how frustrating and complex the process of finding the right restaurant insurance can be and how it affects your peace of mind when you don’t have the right coverage. Let us help craft a policy that works for you.
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
Our Carrier Partners
That allows us to find the best rates for your restaurant
Get A Business Insurance Quote Online for New York based Restaurant Today
Running a restaurant in New York isn’t just about creating incredible dishes – it’s about following a recipe book of rules and regulations to keep your customers and employees safe.
With a tailored insurance program from The Allen Thomas Group, you can focus on running your business with the peace of mind that comes from being protected and compliant.
At The Allen Thomas Group, we’ve spent over 20 years tailoring the right insurance solutions for food and beverage businesses across New York.
We know how insurance helps minimize the threat posed to your business. We can customize policies to help you understand how insurance can help protect and run a small business, according to the New York law.
Because at The Allen Thomas Group, we believe every restaurant deserves to serve its customers security and success, right alongside its signature dishes. Our affordable policies ensure you don’t have to spend too much insurance dollars.
Every business deserves the security of the best insurance coverage. The Allen Thomas Group understands your business needs and can help you understand insurance information and get the best options from top insurance carriers.
Start a quote now. It’s easy to get a free quote at The Allen Thomas Group.
Call us today at 440-826-3676, and one of our insurance agents will get started on whipping up a specific insurance program to protect your entrepreneurial vision. It’s the perfect pairing for your culinary ambitions.
Frequently Asked Questions
Get More Insights On Making The Right Insurance Decision For Your Restaurant
Does your restaurant need employment practices liability insurance?
EPL insurance protects your restaurant from claims made by employees alleging wrongful employment practices, such as discrimination, harassment, wrongful termination, or retaliation.
This type of business coverage can help cover legal fees, settlements, and judgments related to these claims, which can be costly and time-consuming to defend against.
Do you need business income insurance for your restaurant in New York?
For New York restaurants, business interruption insurance acts like a financial safety net if your business is forced to close due to an eventuality.
This type of insurance covers lost income from dine-in, takeout, catering, and events during closure due to fire, theft, health scares, or other insured situations.
Such business insurance in New York reimburses you for the lost revenue you would have made during that time.
What are some of the most famous restaurants in New York?
Eleven Madison Park: One of the most acclaimed fine dining establishments, offering a seasonal tasting menu.
Le Bernardin: Michelin-starred French seafood cuisine with seasonal ingredients.
Per Se: Michelin-starred restaurant by Chef Thomas Keller, featuring a luxurious tasting menu of modern American cuisine.
Katz’s Delicatessen: Iconic New York institution famous for its massive pastrami sandwiches and Jewish deli fare.
Peter Luger Steak House: New York steakhouse staple known for dry-aged cuts of beef and an old-school atmosphere.
The Modern: Michelin-starred restaurant offering stunning views of the Museum of Modern Art, alongside innovative American cuisine.
Jean-Georges: Restaurant by celebrity chef Jean-Georges Vongerichten serving French cuisine with Asian accents.
Rao’s: Tiny Harlem restaurant famous for its celebrity clientele and traditional Italian cuisine.
Balthazar: New York institution, a French bistro with a lively atmosphere and a menu of classic dishes.
Pastis: Popular bistro in the Meatpacking District offering French comfort food and a lively atmosphere.
Nobu: World-renowned chain known for Japanese cuisine with a Peruvian influence (sushi, sashimi, etc.).
Eataly: Giant Italian marketplace housing numerous restaurants serving pizza, pasta, seafood, meats, and more.
Shake Shack: Popular burger chain originated in New York City, known for juicy burgers, crinkle-cut fries, and frozen custard.
Dominique Ansel Bakery: Bakery famous for its Cronut, a croissant-doughnut hybrid.
Halal Guys: Popular street food vendor known for its chicken and rice platters with yellow rice, white sauce, and hot sauce.
Additional Insurance Information About Restaurants in New York
New York State Department of Financial Services (DFS): https://www.dfs.ny.gov/
Small Business Administration (SBA): https://www.sba.gov/
New York State Workers’ Compensation Board (WCB): https://www.wcb.ny.gov/
National Restaurant Association ServSafe Manager Certification: https://restaurant.org/
Occupational Safety and Health Administration (OSHA) https://www.osha.gov/
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