Restaurant Insurance in Westchester County NY
Opening a restaurant in Westchester County isn’t just a business decision, it’s a legal and logistical maze. Whether you’re signing a lease in Scarsdale, retrofitting a space in Bronxville, or starting a family-run eatery in Tuckahoe, insurance is not an afterthought. It’s a prerequisite for opening, a requirement for compliance, and a foundation for sustainable growth.
At Refine Risk, we work with restaurant owners across Westchester, from Pelham to New Rochelle, to help secure targeted coverage without overpaying or missing key protections. This guide outlines exactly what you need, what it costs, and how to move forward with confidence.
What Insurance Do You Need to Open or Run a Restaurant in Westchester?
Business Owners Policy (BOP)
A BOP is the core of most restaurant insurance strategies. It combines:
- Commercial property insurance – Covers your equipment, signage, buildouts, and inventory
- General liability – Covers customer injuries, food borne illness, and damage to others’ property
- Business interruption – Replaces income lost due to a covered shutdown (e.g., fire or electrical failure)
Local Tip: Leases in towns like Bronxville, Scarsdale, and White Plains often require $1M/$2M limits and specific wording on certificates of insurance (COIs). A BOP from the right carrier can meet these terms cleanly.
Workers Compensation
Under NY State law, if you employ anyone, even part-time or a family member, you’re required to carry workers comp insurance. Worker’s comp insurance covers:
- Medical care and wage replacement for injured employees
- Legal defense for employer liability claims
- Compliance with state insurance mandates
Mistake to avoid: Many restaurant owners delay quoting workers comp until opening day. This risks fines and lost permits. We offer zero-payroll WC setups to help you stay compliant from lease signing through opening.
Commercial Auto
You should get commercial auto insurance If your restaurant:
- Offers catering or delivery
- Uses a company-titled vehicle
- Sends employees off-site for errands
Insurance coverages to consider if your restaurant owns, borrows or leases vehicles.
- Non-owned auto liability (for employee-owned vehicles)
- Hired auto liability (for rented vehicles)
- Commercial auto (if titled in your business name)
Local risk: Personal policies won’t cover delivery accidents in New Rochelle or White Plains. Commercial auto ensures you’re protected from denied claims.
Liquor Liability & BYOB Exposure
Even if you don’t operate as a bar, you’re exposed to liquor liability if you:
- Serve wine, beer, or cocktails
- Allow BYOB service
- Host private events with alcohol
Most commercial landlords and municipalities require:
- Liquor liability for permitted sales
- Host liquor liability for BYOB
Important note: In Westchester, landlords often require proof of this coverage before approving renovations or occupancy.
Employment Practices Liability Insurance (EPLI)
Restaurants are high-turnover workplaces. EPLI protects against:
- Harassment or discrimination claims
- Wrongful termination lawsuits
- Wage and hour complaints
Why it matters: Even unfounded claims can cost thousands to defend. EPLI premiums are modest, but the risk is very real.
Restaurant Insurance Coverage You Should Strongly Consider
Equipment Breakdown Insurance
- Covers electrical or mechanical failure of kitchen equipment, walk-ins, HVAC, and POS systems
- Often excluded from basic property coverage
Food Spoilage Insurance
- Pays for lost food due to equipment failure or power outage
- Crucial for walk-in fridges and freezers
Cyber Liability Insurance
- Covers customer data breaches, ransomware, and POS hacks
- Often includes access to forensic and legal recovery teams
Umbrella Liability
- Adds $1M+ in extra protection above other liability policies
- Smart for restaurants near schools, transportation hubs, or heavy foot traffic zones
What Does Restaurant Insurance Cost in Westchester?
Typical annual premiums:
| Coverage | Cost Range |
|---|---|
| Businessowners Policy (BOP) | $1,200 – $2,500 |
| Workers Comp | $1,500 – $4,500 |
| Liquor Liability | $1,400 – $10,000 |
| Commercial Auto | $1,700 – $4,500 |
| EPLI | $300 – $1,000 |
| Umbrella Liability | $400 – $800 |
Things that affect Restaurant Insurance Costs
- Cooking method (fryer vs. steam)
- Age and type of building
- Fire suppression systems
- Claims history
- Lease insurance requirements
What Landlords Require in Your Lease
Before you can begin construction or open your doors, expect to show proof of:
- $1M/$2M liability limits
- Additional insured status for the landlord
- Waiver of subrogation
- Certificate of insurance showing workers comp, general liability or BOP, and umbrella
- Liquor liability (if applicable)
Refine Risk Tip: We review your lease in full to prevent issues and delays before quoting.
How to Get Restaurant Insurance?
- Gather basic info
- Lease agreement
- Square footage
- Staff headcount
- Kitchen equipment list
- Send us your lease
- We review and flag any unusual requirements
- Receive your quote
- We provide options with and without liquor, auto, EPLI, etc.
- Bind coverage and issue COIs
- We handle all documentation for your landlord, lender, and vendors
- Stay in compliance
- Adjust for new hires, expansion, or delivery vehicles over time
Real Questions from Westchester Restaurant Owners
Do I need insurance before I sign the lease?
Yes. Most commercial landlords in Westchester require a Certificate of Insurance (COI) before granting access to the space. This typically includes general liability and workers’ comp coverage.
Example: A new restaurant in Mamaroneck had to present a COI showing $1 million in liability coverage and name the landlord as an additional insured before renovations could begin.
What if I’m the only employee?
If you are the sole owner and have no W2 or 1099 staff, you may file for exemption from New York’s workers’ compensation requirement.
Example: A solo operator opening a takeout counter in White Plains was able to waive coverage but had to file official documentation with the state and show proof to the local municipality.
Can I add insurance coverage later?
Yes. Many Westchester restaurants start with a Business Owner’s Policy (BOP) and workers’ comp, then add more coverage over time.
Example: A Mount Kisco café began with basic coverage and later added EPLI and liquor liability after expanding to evening service and hosting events.
Do you insure ghost kitchens or delivery-only restaurants?
Yes. We insure shared kitchens, commissary setups, and virtual dining concepts as long as the lease, usage terms, and equipment ownership are clear.
Example: A delivery-only brand operating from a shared facility in New Rochelle secured proper general liability, non-owned auto, and cyber coverage through Refine Risk.
Why Choose Refine Risk for Restaurant Insurance in Westchester?
We’re based in Westchester. We work with restaurants like yours, across Scarsdale, Tuckahoe, Bronxville, White Plains, and Pelham, every week. We understand:
- What local landlords require
- What carriers actually want to see
- How to quote quickly without surprises
Ready to get started? Contact our team today for a consultation.