NYC Restaurant Insurance
Why Restaurant Insurance in NYC Is Different
Opening a restaurant in Queens, Brooklyn, or Manhattan comes with unique risks and regulations. From NYC Health Department inspections to liquor license requirements and dense foot traffic, your insurance needs are anything but generic.
At Refine Risk, we work with food business owners across the five boroughs to secure clear, fast, no-surprise coverage that meets your lease, licensing, and financial protection needs.
What Insurance Do I Need to Open a Restaurant in NYC?
Businessowners Policy (BOP)
This foundational policy combines:
- Property insurance for your kitchen, furnishings, and inventory
- General liability for slip-and-fall, foodborne illness, or third-party injury
- Business interruption for lost income after a covered event like fire or water damage
Why it matters in NYC:
Most commercial landlords require $1M/$2M liability limits, additional insured status, and certificate turnaround. A properly structured BOP handles all three.
Workers Compensation
Worker’s Comp is Required in New York even if you have one employee. Your worker’s comp insurance covers:
- Medical treatment for injured employees
- Lost wages during recovery
- Employer liability protection for job-related injuries
NYC tip: Workers comp audits are common. We help keep payroll classifications clean and compliant.
Commercial Auto (if you deliver or cater)
If your staff delivers food or your business owns any vehicle, you’ll need:
- Hired and non-owned auto liability
- Commercial auto insurance for vehicles titled to the business
Delivery exposure is a major loss driver in NYC. Even using personal cars for catering can void claims under personal auto policies.
Employment Practices Liability Insurance (EPLI)
EPLI protects your restaurant from employment-related claims like:
- Harassment
- Discrimination
- Wage/hour violations
Why NYC owners need this:
Employment claims in New York City are frequent, high-stakes, and aggressively pursued by local attorneys. EPLI offsets legal costs.
Liquor Liability
Whether you:
- Sell beer, wine, or spirits
- Allow BYOB
- Serve special events with temporary permits
You could be liable for alcohol-related incidents.
NYC landlords and license boards often require proof of liquor liability before final lease signing or permit approval.
Equipment Breakdown
Covers mechanical and electrical failure of your:
- Refrigeration units
- Ovens and fryers
- POS systems and kitchen technology
Spoilage
Pays for inventory losses due to power outages, frequent during summer peaks or ConEd grid issues.
Cyber Liability
Protects customer data and your POS system from hacking, ransomware, or payment breaches.
Umbrella Liability
Adds extra protection above your standard limits. This coverage is key for sidewalk cafes, delivery-heavy businesses, or event spaces.
What Does Restaurant Insurance Cost in NYC?
Here’s a typical range for small, clean-loss restaurants:
| Coverage Type | Estimated Annual Cost |
| BOP | $1,500 – $3,000 |
| Workers Comp | $1800 – $5,000+ |
| Liquor Liability | $700 – $1,500 |
| Commercial Auto | $1,000 – $2,000 |
| EPLI | $500 – $1,200 |
What affects restaurant insurance costs?
- Location (borough, neighborhood risk, fire code)
- Cooking method (open flame, fryer use)
- Claims history
- Size and occupancy
Common NYC Lease & Permit Requirements
Before your doors open, your landlord or the city will likely require:
- $1M/$2M liability limits
- Workers comp proof
- Waiver of subrogation
- Additional insured language
- Certificate of insurance with endorsements
We review leases before quoting. That avoids delays, rejections, and costly midterm policy rewrites.
FAQs from NYC Restaurant Owners
“Can I wait to get insurance until I pass inspection?”
No. The NYC Department of Health and your landlord will require proof before inspection and occupancy.
“Do I need liquor liability if I’m BYOB?”
Often yes, especially if your lease or local board sees it as an exposure. We help clarify this with underwriters.
“Can I use my personal car for catering?”
Only if you have non-owned auto liability. Otherwise, a single accident could result in a denied claim.
“What if I don’t have employees yet?”
You might not need workers comp insurance if you don’t have employees but the second you hire someone, even part-time, it becomes mandatory.
Why Refine Risk for NYC Restaurants?
- Based in Westchester, with offices in Midtown and Stamford, we serve business owners across NYC: from Queens to Brooklyn to the Upper West Side
- We work with carriers like Utica First and AmTrust that specialize in restaurants
- We handle your certificates, landlord forms, and local license language upfront
Ready to Protect Your NYC Restaurant?
Our local agents at Refine Risk will guide to what policies you need, when to get them, and what each protects.
- Avoid overpaying for coverage you don’t need
- Spot hidden gaps in your lease or permits
- Use it to compare quotes side by side
Reach out to our team to start today.