7 dead. 27 sick.
Those were the headlines after a recalled pasta meal caused a major health crisis at several grocery chains.
As tragic as that story is, it sparked an important question for me as an insurance agent—and more importantly, for the restaurant owners we insure right here in Greece and the greater Rochester, NY area:
What if this happened at your restaurant? Would your insurance policy protect your business?
Spoiler: A Standard Business Policy Probably Won’t Cut It.
Most restaurants carry a Business Owner’s Policy (BOP), which includes some general liability and property protection. But when it comes to something as specific—and devastating—as food contamination, you’ll need more targeted coverage.
Let’s break down what’s actually covered under the Food Contamination – Business Income and Expense Endorsement we recommend for many of our restaurant clients.
🦠 What Triggers Coverage?
This endorsement kicks in when a Board of Health or government authority shuts down your operations due to:
- Discovery or suspicion of contaminated food
- Tainted ingredients you purchased
- Improper food handling or storage
- A communicable disease transmitted by an employee
Even if no one gets sick, the suspicion alone can lead to closure—and significant financial loss.
🛡️ What’s Covered?
Here’s what the endorsement includes:
✅ 1. Income Protection
Covers the actual loss of income during the time your restaurant is shut down by health authorities. This can be a lifeline if you rely on daily cash flow to survive.
✅ 2. Extra Expense
Pays for the cost to clean and sanitize your equipment as required by health officials.
✅ 3. Restoration Expenses
Covers the replacement cost of contaminated food and goods, so you’re not restocking your kitchen out of pocket.
✅ 4. Additional Advertising
Helps restore your reputation by covering up to $5,000 in advertising expenses—TV, radio, newspaper, social media, and more—to let customers know it’s safe to come back.
✅ 5. Inoculation Expenses
Reimburses for medical costs related to testing, vaccines, or treatment for employees and patrons potentially exposed.
🚫 What’s Not Covered?
The endorsement excludes fines or penalties—so if the health department issues monetary penalties, that comes out of pocket. But it does override certain other exclusions in a standard policy to provide more comprehensive protection related to contamination.
💡 Why This Matters Now
As a local agent—and a guy who eats at many of our clients’ restaurants with my wife and kids—I know how fast a business can be blindsided by something like this.
Most restaurant owners assume their BOP has them covered. But the truth is, if you don’t have this specific endorsement, you’re exposed.
The good news? It’s affordable and easy to add. And it can mean the difference between bouncing back or shutting down for good.
Vanscoter Insurance Agency
Local. Trusted. Family-Owned. Serving Greece, NY and the greater Rochester area.
