NYC Restaurant Insurance Requirements: What You Need to Open

The short answer

New York law requires a restaurant with employees to carry workers compensation and disability benefits coverage, which includes paid family leave. Almost everything else is required by someone you sign with: your landlord, your lender, a delivery or catering client. Most leases ask for general liability, property coverage on your improvements and equipment, and often an umbrella and liquor liability.

Required by New York law

Workers compensation. For employees, including part-time and family members on payroll in most cases.
Disability benefits and paid family leave. A separate New York requirement for employers.
Commercial auto. If the business owns vehicles, New York auto insurance requirements apply.

Usually required by your lease

General liability at limits set in the lease, with the landlord as additional insured
Property coverage for your improvements, equipment and stock
Umbrella or excess liability
Liquor liability if you serve alcohol
Plate glass, waiver of subrogation, and notice of cancellation terms

Send the insurance section of the lease with your quote request. The certificate has to match the lease language, and landlords often reject a certificate that does not.

If you serve alcohol

New York's dram shop law can hold a business that sells alcohol responsible in some cases for harm caused by an intoxicated customer. General liability forms often limit or exclude this. Liquor liability covers it. Landlords commonly require it. Ask your attorney or the State Liquor Authority about any license conditions.

Before opening day

Line up coverage before you take possession or start build-out, not on opening day. Many leases require proof of insurance before you get the keys, and your contractor should name you and the landlord as additional insured during construction.

Common questions

What insurance is legally required for a restaurant in New York?

If you have employees, workers compensation and disability benefits coverage, including paid family leave. If the business owns vehicles, auto insurance. Most other coverage is required by your lease or contracts.

Is liquor liability required in New York?

There is no general statute requiring every licensee to buy it, but landlords commonly require it and dram shop claims can be serious. If you serve alcohol, ask about it.

What will my landlord ask for?

Usually general liability with the landlord as additional insured, property coverage on your improvements, often an umbrella and liquor liability, and a waiver of subrogation. The exact terms are in the lease.

When should I buy insurance for a new restaurant?

Before you take possession or start build-out. Many leases require a certificate before you get the keys.

Do family members working in my restaurant need workers comp?

Often, yes, if they are on payroll. New York has narrow exceptions. Ask before you assume one applies.

Can you check my current policy against my lease?

Yes. Send the insurance section of the lease and your declarations pages. A licensed broker will compare them at no cost.

Talk to a broker

Get a quote Send the policy you have

Or call (516) 226-7969, Mon to Fri, 9 to 6 ET. SimpleINSURE Brokerage LLC, 900 Stewart Ave Ste 210, Garden City, NY 11530. NY DFS License BR-1984615.

Coverage descriptions are general summaries. The issued policy governs. Coverage is subject to the insurer's underwriting and the terms of the policy.

Restaurant insurance requirements in New York