Five Claims That Can Shut Down Your Westchester Restaurant
Running a restaurant in Westchester is hard work even on a good day. You manage staff, vendors, compliance, and customers while keeping an eye on costs and reviews. What many owners overlook are the silent exposures that can stop operations with little warning.
These are the issues that rarely appear in headlines but cause the most long-term financial damage. Here are five of the most common threats facing restaurants across Westchester County and how to protect your business before they become problems.
1. Power Failure or Equipment Breakdown
A restaurant kitchen depends on uninterrupted power and working equipment. A single outage can spoil thousands of dollars in food and halt service for days. Standard property policies do not always cover food spoilage or income loss caused by a utility failure.
In Westchester, storms and older utility infrastructure make this risk especially relevant for restaurants in White Plains, Mamaroneck, and New Rochelle. Ask your advisor about equipment breakdown and spoilage coverage to recover the cost of food loss and downtime.
2. Employee Related Lawsuits and Allegations
Employee disputes are among the fastest-growing claims in the hospitality industry. Allegations of discrimination, wrongful termination, or harassment can lead to expensive settlements even when the claim lacks merit.
Employment Practices Liability Insurance (EPLI) provides legal defense and settlement protection in these situations. Many restaurants now add EPLI to their insurance programs because legal costs can escalate quickly, even for small teams.
3. Serving an Intoxicated Guest
Serving alcohol increases both revenue and responsibility. A single incident involving an intoxicated patron can expose the restaurant and owner to a lawsuit. Many restaurant owners assume their general liability policy covers these risks, but liquor-related incidents require a separate policy.
Liquor liability insurance is mandatory for restaurants in New York that sell or serve alcohol. It is also required by most landlords in areas such as Rye, White Plains, and Scarsdale. Confirm that your coverage limits match your establishment’s size and hours of operation.
4. Scams and Payment Data Theft
Restaurants rely on digital point-of-sale systems and online ordering platforms. A cyberattack or ransomware event can shut down your operations and expose customer data.
Cyber insurance helps pay for the cost of recovering systems, notifying customers, and covering lost income during the disruption. Restaurants in Mamaroneck and New Rochelle have increasingly added this protection after seeing cases of fraud from compromised vendor invoices and phishing attempts.
5. Shutdown Due to Claim or Natural Disaster
Many restaurant owners assume their business interruption coverage will replace lost income, but the limits are often too low. If a fire, flood, or other loss closes your restaurant for several months, you may not have enough protection to cover rent, wages, or taxes.
Your coverage should reflect the real cost of staying closed for three to six months. Reviewing this limit each year is one of the simplest ways to protect your long-term financial stability.
How Refine Risk is Building a Safer Future for Your Restaurant
Refine Risk, based in Tuckahoe, helps restaurant owners throughout Westchester County review their coverage, identify gaps, and coordinate policies that keep operations running smoothly. If it has been more than a year since your last review, now is the time to confirm that your program still matches your business.
Schedule your Restaurant Risk Review and take the uncertainty out of 2026.