Find insurance for restaurants in New York
Learn about license requirements and the most common restaurant insurance policies in New York.
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What are the most common policies for restaurants in New York?
Restaurants may need different types of insurance coverage depending on the food and drinks they serve and their location. These are the most popular restaurant insurance policies for New York food establishments to protect against potential risks and financial losses.
Business owner's policy
A BOP bundles commercial property insurance and general liability insurance under one plan. It’s one of the most popular and cost-effective options for New York restaurants.
- Food contamination and spoilage
- Commercial property coverage
- Business interruption insurance
Workers’ compensation insurance
New York requires workers' comp for food service businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal costs from employee injuries
General liability insurance
This insurance policy provides liability coverage and financial protection from common third-party business risks, such as a customer slip-and-fall accident at your food service business.
- Customer bodily injuries
- Damaged customer property
- Personal and advertising injury lawsuits
Commercial auto insurance
This policy covers the cost of accidents involving any delivery vehicles owned by your restaurant, including damage caused to another person's car and medical bills.
- Medical bills from accidents
- Property damage from accidents
- Vehicle theft and vandalism
Liquor liability insurance
Sometimes called dram shop insurance, this policy covers legal fees, medical costs, and more if alcohol is served or sold to a visibly intoxicated person who then proceeds to harm others.
- Injuries caused by intoxicated patrons
- Property damage caused by intoxicated patrons
- Legal defense costs
Cyber insurance
Cyber liability insurance helps restaurants recover from cyberattacks and data breaches. It's recommended for any business that stores customer information.
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Which policies are required for restaurants in New York?
Whether you're in New York City (NYC), Buffalo, Rochester, or elsewhere in New York, you may need the following types of restaurant business insurance to comply with local laws:
Workers' compensation insurance
To meet state requirements and operate legally in New York, restaurant owners with employees must carry workers’ compensation insurance, which helps pay for medical expenses and disability benefits if a worker is injured or becomes ill on the job.
Additionally, most policies also include employer's liability insurance, which helps cover legal costs if an employee files a workplace injury lawsuit.
Independent contractors and sole proprietors without employees aren’t required to carry workers’ comp. However, many choose to purchase coverage for added protection, as personal health insurance is unlikely to cover work-related injury and illness claims.
Commercial auto insurance
Commercial auto insurance covers property damage and medical bills resulting from an accident involving your restaurant business's vehicle. Depending on the coverage options you choose, it can also pay for vehicle theft, weather damage, and vandalism.
Minimum auto liability requirements for New York businesses are:
- $10,000 for property damage liability for a single accident
- $25,000 for bodily injury and $50,000 for death for a person involved in an accident
- $50,000 for bodily injury and $100,000 for death for two or more people in an accident
In addition, personal injury protection (PIP) insurance is required in New York. This add-on coverage helps provide medical payments coverage after a car accident, regardless of who was at fault, and is mandated as part of the state's minimum vehicle insurance requirements.
For vehicles used by the business but are leased, rented, or otherwise not owned by the company, you'll need a separate policy called hired and non-owned auto insurance (HNOA). This policy provides liability insurance but it doesn't cover damage to the insured vehicle.
Personal auto insurance will typically not cover any driving for business purposes, which is why you may need supplemental coverage.
Do I need a license or permit for my restaurant in New York?
Yes. Restaurant owners in New York may need several licenses and permits before opening or operating their business. Specific requirements vary by state, county, and city, but most restaurants need the following:
- Business license: Required to legally operate your restaurant at the state and/or local level.
- Certificate of occupancy: Issued by your local building department to confirm the space is approved for restaurant use.
- Food service establishment permit (health permit): Required from your local health department to ensure compliance with food safety and sanitation regulations.
- Food protection certificate / food handler’s license: Required for managers and sometimes staff who prepare or serve food, verifying completion of food safety training.
- Seller’s permit / Sales tax certificate of authority: Issued by the New York State Department of Taxation and Finance if you sell food or beverages and collect sales tax.
- Liquor license: Issued by the New York State Liquor Authority (NYSLA) if your restaurant serves alcohol.
- Catering permit or additional food service authorization: Required if you plan to offer off-site catering or special event services.
- Employee health permit: Some jurisdictions require documentation for food workers’ health compliance.
Additional permits may be needed depending on your operations, such as mobile food permits for food trucks or zoning and building permits for brick-and-mortar locations.
To get your license, you'll likely need to take an exam, have a certain amount of experience, pass a background check, and pay a fee.
How much you'll pay for the fee depends on whether or not you are the sole owner of the business. Additionally, your restaurant insurance coverage premiums will vary depending on the type of work you do, whether you have employees, your risk management plan, and other factors.
License and permit requirements may vary by location
Depending on your location, your city may have requirements beyond what the state mandates. Restaurants in New York City often need extra approvals, such as:
- NYC Department of Health Food Service Establishment Permit
- NYC Food Protection Certificate (for supervisors/managers)
- Place of Assembly Permit (if you host large groups or events)
- Grease interceptor permit (for plumbing/food waste systems)
- Sidewalk café or outdoor dining permit (if applicable)
- Fire Department permits for certain cooking equipment or fuel sources
How much does restaurant insurance cost in New York?
Fast food restaurants or delis that focus on takeout will pay less for insurance than a large bar and grill or fine dining restaurant.
In New York, restaurant business owners who buy policies from Insureon pay an average of:
General liability: $42 per month
Workers' compensation: $38 per month
Business owner's policy: $75 per month
Factors that affect your restaurant insurance costs during underwriting include:
- Kitchen equipment and property
- Business income
- Types of business insurance purchased, such as equipment breakdown and umbrella insurance
- Coverage options, such as policy limits, exclusions, and endorsements
- Location, such as Syracuse or Albany
- Number of employees
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How do I get New York restaurant insurance?
Insureon helps you save time and money shopping for restaurant liability insurance by comparing quotes from top U.S. insurance companies.
Our insurance agents are licensed in New York and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number of employees and restaurant operations
- Current and projected revenue
- Business partnerships
- Desired coverage limits
- Claims history
- Commercial lease insurance requirements
Apply for free insurance quotes today to find cheap restaurant insurance that fits your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.