Top Restaurant Insurance Endorsements You Need Now

by | Nov 8, 2023 | Blog, Commercial Insurance, Commercial Package, Insurance Endorsements, Liquor Liability, Restaurants | 0 comments

Restaurant insurance endorsements for business protection

Top Restaurant Insurance Endorsements You Need ️

Running a restaurant comes with unique risks — and a basic policy might not cover everything. Understanding key restaurant insurance endorsements can help you avoid costly surprises. This guide breaks down the most important coverage options to consider for your commercial policy.

Why Restaurant Insurance Endorsements Matter

Owning a restaurant can be incredibly rewarding, but it’s not without risk. From kitchen accidents to customer injuries, numerous liabilities can threaten your business. While a standard commercial insurance policy covers some common risks, adding endorsements provides extra protection for your unique needs.

Here are the top restaurant insurance endorsements you should consider:

1️⃣ Liquor Liability Insurance

If your restaurant serves alcohol, liquor liability insurance is crucial. Standard general liability policies often exclude alcohol-related incidents. Liquor liability covers:

  • Injuries caused by intoxicated patrons

  • Fights or altercations

  • Property damage from alcohol-related accidents

Without this endorsement, your business may face serious financial exposure.

2️⃣ Spoilage Coverage

Restaurants hold large amounts of perishable inventory. Spoilage coverage reimburses you for the cost of food that spoils due to:

  • Power outages

  • Equipment failure

  • Natural disasters

This coverage helps you avoid significant financial losses from ruined inventory.

3️⃣ Food Contamination & Foodborne Illness Coverage ️

If a foodborne illness outbreak occurs, your restaurant may face lawsuits and damage to its reputation. This endorsement covers:

  • Legal defense costs

  • Food recalls and replacement

  • Business income losses related to contamination

It helps protect both your finances and your brand reputation.

4️⃣ Employment Practices Liability Insurance (EPLI) ‍

Managing employees creates potential HR risks. EPLI covers legal expenses related to:

  • Wrongful termination claims

  • Discrimination lawsuits

  • Harassment allegations

This endorsement helps shield your restaurant from costly employment-related lawsuits.

5️⃣ Cyber Liability Insurance

Restaurants rely heavily on technology for:

  • Online reservations

  • Payment processing

  • Customer data storage

Cyber liability insurance covers data breaches, ransomware attacks, and the costs of notifying customers, legal defense, and credit monitoring.

6️⃣ Hired & Non-Owned Auto Insurance

If your staff uses personal vehicles for deliveries or catering, hired and non-owned auto insurance provides protection for:

  • Accidents involving employee-owned vehicles

  • Liability lawsuits from delivery accidents

This endorsement protects your business even when you don’t own the vehicle involved.

7️⃣ Equipment Breakdown Coverage

Restaurant operations depend on functioning equipment like:

  • Stoves and ovens

  • Refrigeration units

  • HVAC systems

This coverage pays for repairs or replacements when critical equipment unexpectedly fails, minimizing downtime and financial losses.

8️⃣ Business Interruption Insurance

If a disaster temporarily closes your restaurant, business interruption insurance helps cover:

  • Lost revenue

  • Ongoing expenses (rent, payroll, utilities)

  • Recovery costs during downtime

This coverage keeps your business financially stable while you rebuild.

9️⃣ Outdoor Property Coverage ️

If you have outdoor seating or patios, outdoor property coverage protects against:

  • Weather damage

  • Theft

  • Vandalism

Don’t overlook your valuable exterior property when building your policy.

Employee Dishonesty Coverage

Unfortunately, internal theft or fraud can happen. Employee dishonesty coverage helps recover financial losses caused by:

  • Employee theft

  • Forgery

  • Fraudulent transactions

Build the Right Policy to Protect Your Restaurant ✅

The right endorsements can mean the difference between a minor setback and a major financial loss. Work with an experienced insurance agent who understands the restaurant industry to create a policy tailored to your business.

If you would like a comprehensive review of your current policies — or if you’re a new restaurant owner needing guidance — we would be happy to visit your place of business.

Contact us today:

Michael Vereecke
Agent/President, Customers First Insurance Group
586-221-6870