Liquor Liability
Coverage for claims arising from serving alcohol, such as harm caused by an intoxicated guest. Restaurant general liability generally limits or excludes alcohol claims, so this is a separate coverage. Rules vary by state.
Dram Shop Law
A state law that can hold a server or establishment responsible for harm caused by a patron who was served alcohol. Dram-shop rules vary widely by state and shape how much liquor liability coverage makes sense.
Business Income (Business Interruption)
Coverage that replaces lost revenue and pays continuing expenses when a covered loss forces the restaurant to close. The limit and the period of restoration determine whether it is adequate.
Extra Expense
Coverage for the added costs of reopening or staying open after a covered loss, such as temporary equipment or a temporary location. It usually pairs with business income.
Equipment Breakdown
Coverage for sudden mechanical or electrical failure of systems like refrigeration, ovens, HVAC, and POS, which standard property insurance generally excludes. Often extends to resulting spoilage and lost income.
Spoilage
Coverage for perishable food lost to a covered cause such as a refrigeration breakdown or power outage. It frequently pairs with equipment breakdown and fills a gap basic property may leave.
Food Contamination Coverage
Coverage addressing the losses and costs of a food contamination event, which can include destroying stock, cleaning, lost income, and sometimes reputation expenses, depending on the policy.
Tenant Improvements and Betterments
The buildout and improvements a tenant pays for in a leased space, such as the kitchen and finishes. These are often the tenant's responsibility to insure, not the landlord's.
Hired and Non-Owned Auto (HNOA)
Coverage for the restaurant's liability when employees drive their own or rented vehicles for the business, such as delivery. Personal auto policies generally exclude business use.
Inland Marine
Coverage for movable and off-premises property, such as food truck and catering equipment in transit or at events, where fixed-location property coverage may not reach.
Assault and Battery
A liability exposure, common to bars and late-night venues, that some policies limit or exclude. Worth checking on the policy for alcohol-focused or high-traffic operations.
Additional Insured
An endorsement that extends your liability coverage to another party, such as a landlord, venue, or franchisor, for claims arising from your operations. Leases and contracts commonly require it.
Certificate of Insurance (COI)
A document that summarizes your coverage as of its issue date. It proves a policy exists but does not by itself grant coverage; the endorsements behind it are what satisfy a requirement.
Employment Practices Liability (EPLI)
Coverage for employment-related claims such as harassment, discrimination, or wrongful termination, a real exposure in high-turnover restaurant staffing.
Products-Completed Operations
The liability exposure from the food you serve and work you complete, addressed within general liability. Relevant to foodborne-illness and product claims.
Ordinance or Law
Coverage that helps pay the added cost of rebuilding to current building codes after a loss, which matters for older restaurant buildouts that must be brought up to code.
