Your NY Restaurant Insurance Quote Source
We believe that with our decades of experience in business insurance along with direct appointments to the best restaurant insurance companies serving New York State, we can help you by providing top pricing and protection options for your restaurant.
Cooking up low calorie premiums with full flavor policy endorsements is our specialty.
A NY Restaurant Business Owners Policy (BOP) protects your company from liability exposures, while also covering your business property from damage and loss. A third and very important protection included in most Business Owner Policies is called Business Interruption Coverage. Let’s take a closer look in to the ingredients of these three protections.
NY Restaurant Liability Insurance Coverage
We live in an extremely litigious society that business owners must be aware of. Liability lawsuits continue to rise in number while insurer settlement and court judgment amounts to claimants climb to lofty figures. As a society, we are continually pummeled with personal injury attorney TV commercials, billboards and radio ads that make people very aware that an injury can be worth a hefty sum of money.
It is just simply a necessity to protect yourself from customer or third-party injuries that may occur on your premises or even off-premises if you offer services such as catering.
General liability, also termed “GL” insurance provides a safeguard to your company from these unexpected and often costly expenses. So costly in fact, that it can and does put owners in to severe financial struggles if they are uncovered or carry inadequate limits.
General Liability (GL) Coverage Protects Your NY Restaurant In Two Important Ways
1. Claim Settlement or Judgment: Accidents do happen, even for restaurant owners that stress and practice safety standards for employees, customers, vendors, or anyone who may have interactions with that entity.
For example you operate a restaurant in a building that you own and take very good care of both the interior and exterior of the establishment. A server accidently drops a tray of food during the dinner rush which is quickly cleaned up and the floor is mopped. Soon thereafter, a customer slips and falls on the wet floor tile, and suffers a severe back and head injury.
You are served with a legitimate $1.5 million dollar lawsuit and you only have a $500,000 General Liability limit. What are you going to do?
2. Defense Against a Fraudulent Claim: Unfortunately, there are people that make a business out of suing with fraudulent lawsuits for fake injuries and busy eating establishments can be a prime target. A man walks into your restaurant and intentionally trips himself on a chair extended into an aisleway, falling to the floor and screaming in pain. The eatery’s manager offers a call for medical assistance which is refused. The man asks for help to his feet and slowly limps out of the store after getting contact details from a witness to his alleged injury.
A couple of months later, a claim is filed with the restaurant owner’s insurance company for $2 million dollars for alleged head and spine injuries suffered as a result of the fall. The owner only has $1 million in general liability coverage and now wonders if he’ll have to shut down.
Your insurer starts a defense on your behalf and proceeds with an investigation into the action, reviewing the claimant’s medical records which show no sign of injury. They also request the allegedly injured man to visit their doctors whose examinations, tests, scans, and reports reveal that no injury is present.
The investigation also uncovers the fact that the claimant has had many other personal injury lawsuits in many different states. To top things off, and unknown to the claimant and his lawyer, interior security cameras were present and showed that the man intentionally tripped himself.
The claimant’s attorney receives the evidence gathered from the insurer’s investigation and withdraws the lawsuit.
The restaurant owner feels like a thousand pound weight has been lifted form his shoulders and understands that without proper GL protection he would have had to pay up to tens of thousands of dollars in attorney fees to mount his own defense with no assurance he would even prevail.
Simply put, GL is a safeguard against potential costly lawsuits for bodily injury and/or property damage caused by the negligence of your restaurant.
It also provides an additional protection to the insured by mounting a defense, especially important in fraudulent or frivolous lawsuit actions.
NY Restaurant Business Property Coverage
In addition to liability protection, a restaurant business owner’s policy (BOP) also protects your company’s property against covered perils. Items such as structures or buildings, cooking equipment, refrigeration and freezer units, furniture, food, supplies and fixtures.
Common covered perils may include theft, fire, explosions, burst pipes, storms, vandalism, wind, falling objects and lightning. It’s important that you know which perils are included under your policy, particularly for things that can and do happen in your area and/or business type that cause property losses.
In addition to having the appropriate perils included on your policy, carrying proper protection limits is also very important to avoid gaps in coverage. Two common gaps that we encounter are buildings that are not insured to proper value and undervaluation of business personal property.
Insuring Your Building to Proper Replacement Cost Value
Business Owner Policies are normally written as Replacement Cost Policies typically requiring a building to be insured to at least 90% of the structure’s replacement cost, oftentimes at 100%. After a loss, if it’s not insured to the replacement cost value required, a co-insurance penalty is applied.
For instance, you own a $1.25 million building (replacement cost) with a 100% co-insurance clause and a $5,000 deductible and insure it for $900,000. A fire occurs that causes $600,000 in damage. A coinsurance penalty would apply because the building should have been insured to $1.25 million but was only at $900,000.
The penalty would be assessed by dividing the actual insured amount by the amount that was required ($900,000/$1,250,000) or .72.
The loss of $600,000 x .72 = $432,000 less $5,000 deductible = $427,000 paid by the insurer and $173,000 to be paid by the insured out of pocket to repair the building.
If the structure were insured at $1.25 million or higher, the only out of pocket expense for the owner would have been the $5,000 deductible.
Unfortunately in so many instances, owners are unaware that their buildings are underinsured. This can be due to a sudden and significant rise in the price of materials and labor, a miscalculated initial reconstruction cost estimate, subsequent improvements to the structure unaccounted for by the insurance company, among others. This is why it’s so important to connect with your agent annually to review your policy and re-run reconstruction cost valuations.
Insuring Your Business Personal Property (BPP) To Adequate Limits
We often find company owners who are underinsured for their business personal property, also known as BPP. Everything owned by a company that is not attached to the structure is typically termed as BPP, items such as inventory, equipment, tools, supplies, and fixtures.
For restaurant owners who lease their space in particular, any buildouts and permanently installed items/equipment and fixtures are also their BPP and should also be accounted for. This is termed as Tenants Betterments and Improvements.
It’s important to note that coinsurance penalties can apply with BPP too, and in the event of a total loss, can result in significant out of pocket costs to replace lost items.
Many factors can cause an undervaluation of BPP, usually occurring after the initial policy was issued. Items such as added inventory, permanent site improvements, company expansion, among others.
Make sure to check your limits, ensuring an accurate current replacement cost amount of protection for your assets. We can help you with this.
Business Interruption Coverage
Sometimes termed as Loss of Business Income insurance, helps recoup lost income when your company must shut down due to a covered peril such as fire, theft, wind, etc.
For example, say you own a pizzeria and experience a fire that causes you to shut down for six months until you are ready to open once again. This endorsement will provide the income that normally would have resulted from regular business activity during those six months.
If a total loss occurs and you have to relocate or rebuild your pizzeria building, lost income would be reimbursed up to the lesser of the number of months protection limit you carry on your policy or until you are relocated and open at your new spot or operational at your rebuilt location once again.
This protection is critical for most restaurants yet sometimes included at only a 3 to 6 month limit when 12 months is really what is needed. We make our clients aware of this vital safeguard and will extend to at least 12 months protection at the approval of our insured if 12 months is not already included in the base plan.
It can literally mean the difference between closing up shop for good or being able to reopen your doors.
Tenants Fire Legal Liability
There are far more restaurants that rent space, as opposed to owning the building in which their establishment resides. Just think of all the eateries in malls, strip malls and single to multi-unit investment properties out there.
If you rent a space for your restaurant, and that space or building burns down, you could be held liable to pay for the damages to your own space. This can occur if it’s deemed that the fire emanated from your space due to negligence.
The Tenants Fire Legal Liability endorsement protects against damage caused to your rented space and will provide reimbursement up to the limit you carry on your policy.
It is not uncommon for base policies to provide limits as low as $50,000. If you are only carrying a $50,000 limit on your policy and have a total loss fire in your space that would cost $500,000 to restore, what would you do if you were held liable?
In many instances, it costs in the $100’s of thousands to bring a space back to original condition as required.
Fires can and do happen and you don’t want to be on the wrong end of the tenant fire legal liability limit if it happens to you. We can help you to determine the adequate amount of protection limits to keep you financially safe.
Choosing The Best NY Restaurant Business Insurance Policy (BOP)
We understand that every business is unique and truly enjoy learning more about you and your restaurant. The more we understand, the better equipped we are to offer you the most appropriate options at the most competitive price. Whether it’s a $500 premium or a $100,000 premium, we are going to do our best for you.
We have Great BOP Options for the following restaurant types, with or without liquor sales, with or without seating:
- Casual Dining
- Doughnut Shops
- Family Style
- Fast Casual
- Fast Food
- Fine Dining
- Food Trucks
- Ice Cream Shops
- Sub Shops
- … And More
Other Essential NY Restaurant Insurance Policies For Business Owners
Workers Compensation Insurance : pays for medical expenses and lost wages for work-related injuries and illnesses. It’s Required in NYS as soon as you hire your first employee.
Commercial Auto Insurance : coverage for commercial vehicles. It’s required when your company owns the vehicle or you use it primarily for work.
Cyber Liability Insurance : Protect your business from liability risks resulting from a breach of your systems or loss of private and personal information.
Liquor Liability Insurance : If your restaurant sells or serves alcohol to a visibly intoxicated person who then causes injury or damages, liquor liability insurance can pay for legal fees, settlements, and medical costs. Many Restaurant BOPs include endorsement options to add Liquor Liability to your policy. For those who don’t, we can help you to get a standalone policy.
We service clients for Restaurant Policies in the Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo. Each one of our clients is given a dedicated expert to work together to proficiently address all your concerns.
Whether you are simply looking for the Best Restaurant Insurance quote in New York or want a thorough consultation for your commercial policy needs, we are here to help.
Call one of our professional agents at 518-783-0105 for more about restaurant insurance.
Frequently Asked Questions (FAQ)
Professional liability insurance is also called errors and omissions insurance or malpractice insurance, depending on the industry. Its coverage focuses specifically on lawsuits that stem from professional services. For instance for things such as providing negligent professional services, failing to uphold contractual promises, substandard work, or making mistakes or omissions in work for a client.
Some insurers do offer professional liability as an endorsement on a BOP, but its for a very small class of business types. Most companies that require professional liability insurance will need to obtain a separate policy for which we can help.
Unfortunately, data breaches and other cyber crimes are becoming way too common and can damage your company reputation and put your customers and/or employees at risk. We can help you with a separate cyber policy.
Basic: Includes common perils such as vandalism, fire, lightning, wind, explosions, vehicle collision, and even volcanic activity.
Broad: Includes additional protection for falling objects that damage the exterior of your property, frozen pipes, ice and snow damage, theft, and accidental water damage.
Special: Usually covers all perils except for specific perils that are excluded in the policy such as earthquakes, floods, neglect, war, nuclear hazard, and intentional acts.
Contact us today at 518-783-0105 to speak with one of our trusted agents about your New York Restaurant Insurance & answer any questions you may have and provide you with a quote.