Restaurant Package Insurance

Distinguished restaurant & bar insurance features:

• Hospitality Plus Endorsement – specialized restaurant coverages included
• Coverage written on an admitted basis with an A+ XV rated carrier
• Employment Practices Liability and Cyber coverage available for most accounts
• Liquor Liability included in the package in most states
• New ventures eligible with prior experience
• 30 years of restaurant underwriting expertise

State Availability:

• Available in all states except for Alaska

Eligible Restaurants:

• Fine Dining
• Family/Casual with Full Table Service
• Fast Casual
• Wine Bars
• Off-premises Caterers
• Ghost Restaurants
• Frame restaurants without complete sprinkler systems are not eligible

We welcome the following:

• New Ventures Eligible with Prior Experience
• Sushi & Raw Bars
• Hibachi-style Cooking Exposure
• Incidental Bakery, Market, Retail, or Entertainment Exposure

Fine Dining Restaurant Insurance features:

• New ventures eligible with prior experience
• Unique coverage enhancements include Food Contamination, Food Spoilage, Equipment Breakdown, Backup of Sewer and Drain
• Business Interruption coverage provided for off-power failure including overhead transmission lines
• Excess coverage is available to accompany our package program
• Rush quotes will be provided as needed
• Minimum premium $5,000

Ineligible Risks

• Protection class 8-10 property
• Cocktail lounges
• Risks with more than incidental entertainment

Family Dining Restaurant Insurance Features:

• Eligibility: Family and casual restaurants with table service
• New ventures eligible with prior experience
• Excess coverage is available to accompany our package program
• Rush quotes will be provided as needed
• Minimum premium $5,000

Ineligible Risks

• Buffet-style restaurants
• 24-hour restaurants
• Sports bars/restaurants
• Protection class 8-10 property
• Coverage for delivery
• Risks with more than incidental entertainment

Fast Casual Dining Restaurant Insurance Features:

• Eligibility: Fills the space between fast food casual dining with full table service, promises a higher quality of food and atmosphere than a fast food restaurant; typical meal cost is in the $8-$15 range (including beverages); also referred to as “quick casual” or “limited service”
• New ventures eligible with prior experience
• Excess coverage is available to accompany our package program
• Rush quotes will be provided as needed
• Minimum premium $5,000

Ineligible Risks

• Traditional fast food restaurant chains

Features

• Eligibility: Off-premises caterers
• New ventures eligible with prior experience
• Accounts that are 100% off-premises catering or a combination of restaurant and catering will be considered
• Commercial Auto coverage considered in conjunction with package
• Minimum premium $5,000

Ineligible Risks

• Caterers that specialize in weddings
• Banquet Halls

Features

• Eligibility: Upscale atmosphere with focus on selling wine rather than liquor or beer and offer a robust food menu including small plates and/or entrées
• Excess coverage is available to accompany our package program
• Restaurant enhancement coverages included

Restaurant Liability Insurance:

Restaurants face a number of exposures that are common to all types and size operations – from family dining to fast casual. Here we take a look at some of the growing exposures that can impact a restaurant’s bottom line and, in some cases, damage its reputation.

Food contamination and food borne illness are a growing concern for restaurants. E-coli and norovirus breakouts at establishments across the country are increasingly making headline news. A food contamination incident could result in significant costs for a restaurant depending on the fines, lawsuits and legal fees generated from the loss, as well as the number of people affected by the incident, and the interruption of business should the restaurant have to close its doors for any period of time. According to a study by the Johns Hopkins Bloomberg School of Public Health, at fast casual establishments, restaurants where you order at the counter and seat yourself, the potential financial impact of a food contamination was $6,330 to $2.1 million. Casual dining operations had a cost range of $8,030 to $2.2 million and fine dining chains, upscale venues with full-service waiters, would see a cost between $8,273 and $2.6 million (CNBC News).

Food spoilage is another concern for restaurants. If the operation’s refrigeration system goes off line due to equipment breakdown or a power outage damaging supplies and ingredients, there is the cost of replacing the damaged goods. Food Spoilage coverage reimburses the restaurant for lost provisions.

Liquor liability is another exposure that could potentially upend a restaurant’s operations. Establishments that serve alcohol in at least 43 states under dram shop statutes can be held liable for injuries caused by an intoxicated customer. Generally speaking, dram shop is a term used to describe any establishment where alcohol is sold and consumed, including bars, nightclubs, and restaurants. A restaurant, for example, was ordered to pay nearly $25 million to a family of a woman who was killed in a car accident caused by an intoxicated individual who was drinking at their bar. In this case, without the proper underlying Liquor Liability coverage and a high-limit Umbrella policy, the restaurant would have been responsible for the amount not covered.

Cyber risks are pervasive today, including for restaurants, which handle a huge amount of credit card data. Cyber criminals are upping their game and targeting point-of sale vulnerabilities to access customer’s sensitive data. Cyber Liability insurance should be incorporated into a restaurant insurance program to address potential data breaches and other cyber attacks.

Employee disputes where workers allege discrimination and workplace harassment also impact a restaurant’s profitability if not properly covered. According to the EEOC, it fields 90,000 employment liability claims each year with the average loss pegged at $450,000. Most recently, the #MeToo movement highlighted the extent of sexual harassment throughout every industry, including at high-profile restaurants. As a result, the need for EPLI insurance has received greater attention.

Business interruption as a result of a property loss (a kitchen fire or burst pipe, for example), equipment breakdown, loss of power and utilities is a risk that restaurants cannot ignore. The appropriate restaurant insurance should include coverage for loss of income, payroll costs, fixed expenses, relocation costs, and other expenses if an establishment is forced to temporarily close while repairs take place.

In securing coverage for a restaurant, be sure your client’s restaurant insurance package includes comprehensive and broad protection to safeguard the establishment’s property, patrons, employees and assets.

Make sure you have the proper restaurant liability insurance for your establishment.