What Kind of Insurance Do I Need to Open a Restaurant In New York?

Restaurant ownership is a challenging undertaking that comes with its share of hardship; however, it is a highly rewarding endeavor. If you want to open a restaurant in the State of New York, you will need a rather substantial amount of financial backing.

To protect your investment, you will also need restaurant insurance. It does not matter if you serve a full menu with wait staff, serve alcoholic beverages with a few menu options, integrate live entertainment, or open just a small café.

In this guide, we will outline the basics behind the insurance that you will need to obtain. 

Liability Insurance 

Regardless of what type of restaurant that you open, there are risks involved. The following outlines the 3 most popular types of liability restaurant insurance. These aid in covering any type of legal fees that may arise if a litigation is placed against your establishment:

  1. General Liability – This covers the injury of an employee or a customer. It is designed to cover damages occurring from an injury and the medical bills of the party that sustained the injury. 
  2. Product Liability – Food-based illnesses are always a risk to restaurant owners. This protects your establishment from the expense associated with various claims and even lawsuits pertaining to the preparation and/or serving of the food in your establishment. 
  3. Liquor Liability – If you serve alcohol in your restaurant, this insurance protects you from suffering from damages if a patron under the influence of said alcohol causes any type of damage to your property and/or causes harm to another individual. 

General Coverage 

There are many restaurant insurance types that are considered to be standard among owners. These include the following: 

  1. General Restaurant Insurance – This covers damage in terms of property and liability on the potential perils associated with a restaurant. 
  2. Unemployment Insurance – This is a requirement in the State of New York. It is for employees of the establishment. 
  3. Worker’s Comp – This is another requirement in the State of New York. It is designed to protect employees should they experience an accident, injury, or even death while on the property. 
  4. Commercial Auto – If you deliver food in company-owned vehicles, this insurance protects your restaurant from liability and covers both the owned vehicles and the employees that drive them. 
  5. Life Insurance – This helps to protect large loans taken out on the restaurant in the event that you should pass away before the loan is paid off. 

Property Insurance 

In addition to the above-listed insurance types, the following types of insurances should be obtained if you plan on opening a restaurant in New York:

  • Building Insurance
  • Contents Insurance
  • Flood Insurance
  • Equipment Insurance
  • Loss of Income Insurance
  • Food Contamination Insurance

Contact Us Today 

If you are in need of restaurant insurance, we here at Modica Associates are capable of assisting you. We will discuss your business and your needs. We will then help you establish the type of policy that you need to provide the most comprehensive insurance for your needs.

To learn more, give us a call today and let us know that you have an interest in obtaining restaurant insurance at: 718-855-1836

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