Restaurant Insurance Review Checklist

Industry baseline for a full-service restaurant is $1M per-occurrence / $2M aggregate. If you operate multiple units or host private events, push to $2M / $4M and layer with an umbrella. Confirm the aggregate applies per-location, not shared across the entire policy.

Replacement cost (RCV) rebuilds at today's prices; actual cash value (ACV) depreciates the loss. Restaurants with kitchen equipment older than 10 years often discover too late that their policy is written ACV. Confirm both building and contents valuation read RCV on the declarations page.

Walk-ins, hood and Ansul system, six-burners, plancha, fryers, and POS hardware should be scheduled or fall comfortably within the contents limit. Built-in fixtures like banquettes, bar millwork, and tile work usually need a separate improvements-and-betterments line if you're a tenant rather than the building owner.

Workers' comp is state-mandated for nearly all restaurant employers (Texas is the major exception). Confirm the policy is written by a carrier admitted in your state and meets statutory minimums. NCCI class code 9082 is the standard restaurant classification; 9083 applies for fast-food.

Tipped servers, bussers, hosts, dishwashers, and seasonal hires all require coverage. Confirm 1099 contractors — DJs, delivery drivers using their own vehicles, occasional caterers — are either excluded by endorsement or specifically scheduled. Misclassification is the most common audit finding and triggers retroactive premium.

Pull the current liquor license and confirm it is active and unexpired. If the restaurant does not serve alcohol, the next two steps will not appear. If the license has lapsed or is in renewal, flag for the GM before continuing.

Dram-shop statutes hold the seller liable for damages caused by an over-served patron. Carry at least $1M per-occurrence; states with strict dram-shop laws (TX, NJ, CA, IL) often warrant $2M or higher. Confirm the policy is on a stand-alone liquor liability form, not just a GL endorsement — the endorsement route typically excludes assault and battery.

Confirm the policy responds to health-department-traced outbreaks of norovirus, salmonella, E. coli, listeria, or Hep A. Some forms require state lab confirmation before triggering; others trigger on suspected contamination. Review the trigger language and the look-back window for prior product served.

After a confirmed contamination, full kitchen deep-clean and surface decontamination by a licensed remediation vendor runs $20K–$50K. Verify cleanup expense is a named coverage and check whether its sublimit is shared with business interruption or separate.

Restaurant POS systems (Toast, Square for Restaurants, Aloha, Clover) hold guest card data and PCI-relevant records. Confirm the cyber policy covers card-brand assessments, forensic IT investigation, and PCI fines. The 2014 P.F. Chang's breach is the standard case study — that incident's costs ran past $1.7M before insurance.

First-party covers your forensic, notification, and ransom expenses. Third-party covers liability to guests whose data was exposed. A policy with only first-party coverage leaves you exposed to class-action settlements — confirm both sides are included and check the sublimits on each.

Aggregate findings from each line of coverage into a one-page memo for the owner. Flag any limits below industry baseline, missing endorsements (assault and battery, liquor on GL form, employment practices), and carrier-specific exclusions surfaced during review.

Walk through each flagged gap with the broker. Get written quotes for any coverage increases or new lines being added. Confirm any rate impact against the renewal proposal before binding — last-minute add-ons after the renewal effective date typically incur short-rate premium.