Owning and operating a NYC restaurant can be rewarding. But it’s not an easy task as it involves many intertwined factors in order to keep it running smoothly and safely, including complying with food safety requirements, adhering to employment laws, and obtaining the best NYC restaurant insurance. Nevertheless, the risks of operating a restaurant in NYC without complying with laws or with adequate insurance are huge no matter what size restaurant you have.
Overview of NYC Restaurant Insurance
New York’s restaurants are a thriving industry. And, it’s enough of a challenge to run a busy restaurant without having to be concerned about property damage, lawsuits, and loss of income. Having the right amount and type of insurance for a restaurant in NYC will help reduce these concerns and focus on important tasks — like preparing delicious food for your customers.
Although all restaurants need to have coverage, certain restaurants may be required to have specific types of insurance. It’s important that you familiarize yourself with New York’s rules and regulations regarding this.
Why NYC Restaurant Insurance is Needed
Whether you manage a huge chain of restaurants all over the state of New York or a small mom & pop coffee shop, a lawsuit can happen no matter how small the incident. Perhaps a customer gets sick after she ate something you sold to her or maybe slipped and fell on your wet floor and injured her back.
Regardless of what happened, it can turn into a lawsuit that could cost you a great deal of money and you could even lose your restaurant. Therefore, it’s essential that you cover yourself and your establishment with adequate insurance coverage.
Types of Insurance for a NYC Restaurant
From the safety and reliability of your staff to the safety and health of your customers, as a restaurant owner, you have a lot on your plate (no pun intended). The good news is, you can customize your NYC restaurant insurance to fit your specific needs. If you have a delivery service, bar, or a wine storage facility, you are going to need more than a basic liability policy.
Some types of insurance for a restaurant in NYC may include:
Commercial Property Insurance
This type insurance will protect the entire property of your establishment in unfortunate events like a fire or other mishap that causes damage to your property.
Each time you have a customer walk through the doors of your restaurant, you are at risk of a lawsuit for an accident. For instance, allergic reactions from food you serve, a slip and fall, or a patron that becomes too intoxicated are all lawsuits waiting to happen. With a general liability insurance policy, you are protected from these types of occurrences.
If you have a liquor license, you need liquor liability coverage in your insurance, in most cases. This insurance protects you if you have a customer who drank too much and drives, which results in them hurting themselves or another person.
This is mandated by New York State Liquor Authority. You need a valid liquor bond to even apply for your liquor license and keep it. Typically this bond is good for the same period of time your liquor license is and doesn’t require any credit checks or underwriting. Obtaining a NYC liquor bond is rather simple: you just fill a form out, make a payment, and the bond is sent to you.
Food Contamination Insurance
This insurance will protect you from the loss of having to replace food. For instance, you have a power outage due to power lines and the food in your freezer or cooler goes bad. Another related NYC restaurant insurance is spoilage insurance, which protects you financially from losing food inventory.
Products Liability Exposure
Allergic reactions and food poisoning are a big and quite possible risk. It’s important that you not only monitor your food quality, post ingredient lists and maintain proper temperature of storage, but you should also protect yourself financially for any loss from bad food.
Restaurant theft can happen, unfortunately. In fact, there are even statistics showing that 75 percent of employees end up stealing from their employers at one time or another. This can be through cash, supplies, food, or equipment. It can happen suddenly or gradually, but either way, it can be costly. Adding this type of insurance to your restaurant insurance will protect you from this type of loss.
Other important types of NYC restaurant insurance you should have include:
- Employment Practices Liability
- Commercial Crime Insurance
- Business Interruption or Loss of Business Insurance
- Business Owners Policy
- Auto Insurance (if you provide delivery)
- Workers Compensation
Remember, the risks of operating a restaurant in NYC are too big for you not to have insurance and the right amount. You need to protect yourself from lawsuits and damages that can happen and do. It’s definitely not something you want to skimp out on either as it can cost you significantly if you are found liable.