Frequently Asked Questions (FAQs)
Running a restaurant is exciting but it also comes with risks. From kitchen fires to customer slip-and-falls, one unexpected event can put your business at risk. The right insurance protects your investment, your employees, and your peace of mind. This FAQ answers the most common questions restaurant owners ask when exploring coverage for the first time.
What types of insurance coverage do restaurants need?
Most restaurants carry a combination of:
General Liability – Covers customer injuries, property damage, and legal costs.
Commercial Property – Protects your building, equipment, and inventory.
Workers’ Compensation – Required if you have employees; covers medical costs and lost wages.
Liquor Liability – Essential if you serve alcohol.
Business Interruption – Helps replace lost income if you must close due to a covered event.
What is a Business Owner’s Policy (BOP) and why is it recommended for restaurants?
A Business Owner’s Policy bundles general liability and commercial property insurance with business interruption coverage into a single package. For restaurants, this simple structure provides broad protection in one contract while often costing less than buying separate policies. NY Restaurant Insurance explains that many restaurant insurers base liability charges on total sales or square footage, which means you pay more as you grow. By contrast, a BOP uses a flat liability charge added to the value of your equipment and inventory. That makes pricing predictable and is why most of their restaurant clients are rated on a BOP. In short, a BOP simplifies coverage, often reduces premiums and satisfies most landlords’ insurance requirements.
Can I add coverage for delivery drivers?
Yes. If your staff makes deliveries, you’ll likely need Hired & Non-Owned Auto insurance, which protects your business when employees use their own vehicles for work.
Do landlords require proof of insurance?
Most landlords will require a certificate of insurance before you open your doors. This shows you have active coverage and the landlord is listed as an additional insured.
How are restaurant insurance premiums calculated?
Premiums are based on several factors, including:
Type of restaurant (fine dining vs. fast food vs. coffee house)
Location and building details
Annual revenue and payroll
Number of employees
Claims history
Coverage limits you choose
What documents do I need to start a quote?
Typically, you’ll need:
Basic business details (name, address, ownership)
Estimated annual sales and payroll
Employee headcount
Lease or property information
Any current insurance policies (if applicable)
Ready to get started? Request a free quote
What’s different about insuring a food truck vs. a full-service restaurant?
Food trucks need all the basics plus:
Commercial Auto coverage for the vehicle
Protection for mobile cooking equipment
Coverage that follows you to multiple locations
How can I save money on restaurant insurance?
Start by working with an independent agent who understands the restaurant industry and can compare options from multiple insurers. Consider a BOP to bundle property, liability and business interruption coverages at a discount. Review your policy to see if your liability charge is based on sales or square footage, switching to a flat‑rate BOP could lower your premium. Implement safety programs and maintain a drug‑free workplace to qualify for premium credits. Offer modified‑duty roles to help injured employees return to work and reduce workers’ compensation costs. Finally, keep your claims history clean by promptly fixing hazards, training staff and storing food safely.
How fast can I get coverage in place?
Many restaurant policies can be bound within 24–48 hours once we have your information. In urgent cases, same-day coverage may be possible.
Are there discounts for safety programs or bundled policies?
We offer savings when bundling general liability, property, and workers’ comp with the same insurer.
How do insurance claims work, and how long do they take?
If something happens, you file a claim with your insurer. An adjuster investigates, and approved claims are paid based on your policy terms. Straightforward claims may resolve in a few weeks, while more complex cases can take longer.
Do I need liquor liability insurance if I only serve beer and wine?
Yes. Liquor liability applies to any alcohol service, including beer and wine. Without it, you may be responsible for costly lawsuits related to over-service or accidents involving customers.
What makes NY Restaurant Insurance different?
NY Restaurant Insurance is a division of Larsen Insurance Agency in Williamsville, NY. They specialise in insuring restaurants across New York and surrounding states. The agency emphasises saving clients money by rating liability on a flat basis through a Business Owner’s Policy rather than on sales or square footage.As a local independent agency, they offer personalised service and access to multiple carriers. If you’re a restaurant owner in Buffalo, Rochester or anywhere in Western New York, call (716) 684‑3203 or visit their website to request a free, no‑obligation quote. Their team will review your operation, recommend appropriate coverages and help you start saving today.