One of the most common claims restaurant owners file on their restaurant insurance is for theft. In fact, theft accounts for 20% of all claims with an average payout of $8,000.*

What's more alarming, it's not unknown thieves or customers who commit theft—it's usually the employees. The National Restaurant Association reports that 75% of restaurant losses are due to employee theft. These losses add up to 4% or $36 billion of annual sales for quick service restaurants.

That's a lot of dough, and restaurant owners need to make sure they have the right restaurant insurance to protect themselves from these potential losses. To cover employee-related theft, restaurant owners need to purchase employee dishonesty coverage.

For the other 25% of theft-related claims, restaurant owners need a Business Owner's Policy (BOP), or a Commercial Package Policy (CPP) that includes property insurance with an option to add inland marine coverage.

What Does A Business Owner's Policy Or Commercial Package Policy Cover?

Business owner's insurance, or BOP policies, can bundle commercial property insurance, general liability insurance, and business income insurance.

  • Commercial Property Insurance—Protects the property your business owns, leases, or rents—including inventory, equipment, furniture, and fixtures. Additional options can include coverage for accounts receivables, valuable papers and records, and fire extinguisher recharge expense.
  • Business Income Insurance—If your business operations were suspended because of a covered loss, such as theft, your insurance may help replace your loss of income to help you meet continuing financial obligations such as rent or payroll. Business income insurance will also anticipate profits and or losses of the business.
  • General Liability Insurance—Protects your business from third-party liability claims such as property damage, bodily injury, or personal injury. For example, if someone were to slip and fall in your restaurant.

What Is Employee Dishonesty Coverage?

Employee dishonesty coverage protects you in the event that an employee's dishonest acts causes damage to you or a third party. Your employees can be your greatest asset but also a major liability.

For example, one common way that restaurant employees commit theft is through credit card skimming when they take a customer's card to process payment. If your employee skims a customer's card, both your employee and you could be sued by the customer for damages.

An employee may also embezzle money from you causing financial harm and damage your business. On average, the typical restaurant loses up to 5% of their revenue each year due to embezzlement.

What Does Inland Marine Cover?

You may have wondered how "inland marine" coverage protects you as a restaurant owner. Inland marine coverage protects your movable business property.

This type of coverage protects:

  • Equipment that you transport from location to location. An example might be catering equipment that you take to various venues.
  • Property in your temporary care. This could be an item you are renting or using as part of your business operations.
  • Equipment that is part of a fixed, but movable location. If you have a food truck or trailer, inland marine would protect the equipment inside the truck or trailer, but would not cover the food truck or trailer itself. If your equipment is part of the truck or trailer and is included in the value of the vehicle, you need commercial auto coverage.

Be aware that there is usually a mysterious disappearance exclusion for inland marine coverage. To file a theft claim on your inland marine coverage, you must know that the cause of the loss was indeed theft and is not simply a misplaced item.

How to Purchase Restaurant Insurance from Insurance Canopy

Protect yourself from one of the most common losses that restaurants experience with restaurant insurance from Insurance Canopy. Our agents are well-versed in the unique risks that restaurant businesses face and can help you develop a plan to cover your bases.

To purchase restaurant insurance, fill out this form and a licensed agent will contact you.



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