How Restaurant Insurance Coverage Might Change After COVID

Hoffman Hanono
December 20, 2022

Few industries were immune to the impact of the COVID-19 pandemic, but restaurant owners were amongst those hardest hit. Yet many restaurateurs found creative ways to survive and thrive by shifting their business models, introducing outdoor dining, consolidating menus, and expanding carryout and home-delivery services.

These creative modifications may have been instrumental in saving your business, but they could also impact your insurance coverage. How? We'll tell you everything you need to know here.

Moving the Dining Experience Outdoors

When the pandemic hit, many restaurant owners moved to outdoor dining and even constructed new patios to accommodate guests. If you fall into this category, review your commercial property insurance to ensure it covers outdoor dining.

New Equipment

Did your decision to experiment with new food items or expand your menu require you purchase new equipment during the pandemic? If so, consider expanding your property coverage.


Did you increase your advertising budget during the pandemic to promote your business? Now is an excellent time to review your general liability food and beverage insurance to ensure it covers any risk associated with advertising. 

More Deliveries

While many restaurants relied on third-party delivery platforms like GrubHub and UberEats for at-home delivery, others kept food delivery service in-house. Also, if you used a personal vehicle for commercial purposes, it is unlikely that your non-commercial insurance policy will protect you against business-related claims.

Unpredictable Closings

During the pandemic, local government regulations varied and, in many cases, seemed to change overnight. That unpredictability was (and remains) unnerving for restaurant owners. As a result, you may need to adjust your general liability, commercial property, and workers' compensation coverage to compensate for possible business interruptions.

Rising Prices

Insurance costs have been steadily climbing over the last two years. There are myriad reasons for it—widespread inflation, increased legal liability, a rise in weather-related claims, and depressed investment returns are all to blame. So why do we bring this up? Because insurance is a competitive industry, now may be a good time to shop around for better coverage at a more affordable price.

Protect Your Restaurant with the Right Insurance

Need help finding affordable, comprehensive insurance for your restaurant or business? Contact Hoffman Hanono. We're a leading provider of commercial insurance for operations in the restaurant industry, and we can help you select a suitable policy for your business. Contact us today to get started!