New York is known as a city of innovation across every type of industry. This is partly due to the fact that Manhattan is an expansive cultural hub where nearly every nationality is well-represented. Another reason is that competition, while stressful, also spurs greater achievement. Around the world, New York City is known as a dining destination, with global cuisine options available on nearly every street. In an environment where only the strongest survive, having quality insurance coverage is an imperative. When researching considerations when buying restaurant insurance in New York, Grillo & Associates, a leading regional insurance firm, offers these recommendations:

Liability Limits

First and foremost, this is essential coverage. Also known as General Liability, it protects your establishment from expensive claims made by patrons and even staff. These can include personal injury, bodily damage, and personal and advertising injury (such as libel, slander, defamation, a violation of privacy rights and infringement of another’s advertising design, trademark, or slogan). Two common examples are when a patron claims your food made them sick, or someone slips and falls in your premises. Most restaurateurs believe that carrying $1 million in liability coverage is sufficient. Grillo & Associates advises that you consider liability coverage that pays up to $2 million per occurrence with a $4 million aggregate limit, and current lawsuits and settlements can run this high. And for additional protection against libel claims, consider adding an umbrella policy.

Business Income Coverage

This coverage provides for your overhead, including rent and staff salaries, if your premises are shuttered for a period of time – such as if a grease fire destroys your kitchen. Your property policy will cover repairs and replacement, but business income coverage enables your business to meet operating expenses during the recognized restoration period, until you are back up and fully operational again.

Perishables Coverage

It happens, a hurricane knocks out power to your block and your refrigerated items spend too long a time at room temperature. Or your walk-in gives up the ghost overnight, leaving you with spoiled food that cannot be served. Without perishables coverage, this would be a total loss, as it covers the entire cost to replace the ruined food. This coverage also protects restaurant business owners against contaminated food. If a foodborne illness shutters your premises, or you receive a notification from the Board of Health demanding that you close down, this coverage will protect against loss of income due to a shutdown, medical treatment for employees, food replacement costs, and even advertising to restore your brand’s reputation. It is an essential policy to have when you are considering restaurant insurance in New York.

Building and Contents Coverage

Also known as Commercial Property Insurance, it is essential for every restaurant in the 5 boroughs to obtain. While a grease fire is the leading cause of damage and destruction to a restaurant’s premises, there other possibilities include storm damage, theft, and vandalism. The high cost to replace the contents of your establishment can be fully offset with this coverage, which generally includes:

  • The structure
  • Signage
  • Restaurant equipment
  • HVAC, and venting systems
  • Furnishings including tables, chairs, banquettes, lighting, flooring, light figures, artwork, and decor
  • Inventory – food and wine
  • Landscaping, pathways, patios, and outside fixtures

Liquor Liability

For every dining establishment considering restaurant insurance in New York, that holds a liquor license, manufactures alcoholic beverages, or allows alcohol to be consumed on its premises, or with takeout orders, this coverage is a must. The coverage includes the sale, manufacture, and distribution of alcoholic beverages. Scenarios include the actions of an intoxicated customer after leaving your premises, such as being responsible for a car accident. This coverage protects your business in case of a lawsuit.

The insurance professionals at Grillo & Associates are ready to assist you with all your insurance coverage requirements. The New York food scene is unrivaled anywhere, but to stay in business takes more than a popular menu. Speak with our team to learn more about the coverages that will protect your establishment and allow you to stay in business. Call today!