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Can Insurance Protect a Restaurant from a Lawsuit, Fire and More?

We’ve recently heard about restaurants that have been in the media’s spotlight for asking certain patrons to leave based on political leanings and for taking other actions that may be the basis for a lawsuit. Restaurant insurance can protect an eatery in the event of occurrences such as the above, as well as for fire damage, theft and further scenarios where losses result.

Let’s take a brief look at what insurance coverage for the restaurant entails.

Many insurance providers rate the restaurant industry in the same class as those in the business of accommodations. Because restaurants have a high record of fires caused by grease on cooking utensils as well as in oven hoods and ducts, the insurers are experienced with very many associated claims. Similarly recurrent losses are incurred from poor electrical wiring, defective electrical appliances and lack of proper cleaning maintenance.

When restaurants install auto fire extinguishing systems there is a mitigated risk of loss from cooking grease fires.

Restaurants that do not serve alcoholic beverages experience less significant liability exposures than those related to property. The risks are generally written subject to strict inspections and assessments, as well as the restaurant owners’ active involvement in eradicating the involved perils.

Basic Coverage Points:

  • Business Property Insurance can cover fire, vandalism and other perils that may cause losses to your premises, furnishings and equipment.

  • Business Liability Insurance can cover the legal costs of a lawsuit against you.

Other Types of Insurance a Restaurant should Consider:

  • Business Income for Off-Premise Utility Services

  • Business Income from Dependent Properties

  • Computer and Media

  • Data Breach

  • Food Contamination

  • Non-Owned Auto or Hired Car

  • Liquor Liability (when alcoholic beverages are part of the menu)

  • Tenant’s Legal Liability

Every restaurant is unique. Talk to an experienced insurance agent to understand the risks you have and the related protective insurance coverage you need.

PRIME Insurance is a three-generation family-run independent agency. We’re proud partners with many of the leading companies in the industry – big names such as ACE, AmTrust, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!


Summary: The restaurant business involves a lot of exposure to risks. Related insurance coverage can protect your establishment from the associated losses and damages.



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