Yes, for the most part. Restaurant property insurance on a special form typically covers vandalism damage and property stolen in a break-in, such as a smashed door, damaged equipment or stolen liquor. The key conditions: cash and securities need separate crime coverage, theft by your own employees is excluded, and coverage for vandalism can be lost if the building has been vacant beyond the policy’s vacancy period.
Break-ins tend to happen after close, and the damage is often worse than what is taken: pried doors, shattered storefront glass, a broken safe, graffiti on the walls. This page covers which policy responds, where claims get reduced, and what to verify in your BOP or package policy.
Where vandalism and burglary losses land in your policy
Under standard ISO commercial property forms, vandalism is a named cause of loss on the basic, broad and special forms, meaning willful and malicious damage to property. Theft is covered only on the special form, so a restaurant on a basic or broad form may have coverage for the broken door but not for the stolen equipment. In practice:
- Building damage – covered under building coverage if you own the building, or under tenant improvements and betterments if the damaged items are your build-out.
- Doors and glass as a tenant – many leases make tenants responsible for storefront glass and doors; some BOP forms extend business personal property to exterior glass a tenant is responsible for, while other forms need it scheduled.
- Stolen and damaged contents – POS terminals, tablets, liquor, small equipment and furniture fall under business personal property.
- Money and securities – excluded from property forms and covered only through crime coverage or a money and securities endorsement.
- Business income – if the break-in forces a closure, business income may pay lost income after the waiting period.
- Extra expense – boarding up, temporary security and expedited repairs can fall here or under the policy’s preservation of property provisions.
Exclusions and limits that reduce break-in claims
- Employee dishonesty – the special form excludes dishonest or criminal acts by you, your partners, managers and employees; inside jobs need employee theft coverage under a crime policy.
- Vacancy – under the standard ISO condition, if a building has been vacant for more than 60 consecutive days, vandalism, glass breakage and theft are not covered and other losses are reduced.
- Theft limitations – some categories of property have special theft limits, and property left outside a building may not be covered.
- Unexplained disappearance and inventory shortage – missing stock discovered only by a count is excluded.
- Protective safeguards – if your policy requires a working burglar alarm or other safeguards and you let them lapse, coverage can be suspended.
- Deductible – smaller break-ins may fall below your property deductible.
Two break-in and vandalism scenarios
A sports bar’s storefront and liquor cage
Thieves shatter the front window of a sports bar at three in the morning, pry open the liquor cage and take cases of top-shelf spirits and two tablets. The cash drawer, left in the register overnight, is emptied too. The special form typically pays for the glass (depending on who is responsible under the lease), the cage repair and the stolen liquor and tablets. The cash is a crime coverage question, and the claim for it may be denied if no money and securities coverage was purchased.
Graffiti and slashed booths at a closed-for-renovation diner
A diner closes for a long kitchen remodel. Weeks later, vandals get in through a back door, spray-paint the dining room and slash the booth upholstery. Whether the claim is paid may turn on the vacancy condition: a building under construction or renovation is generally not considered vacant under the standard form, but a closed building with little business property and no operations may be. Tell your agent before any extended closure.
What to check on your own policy
- Causes of loss form – special form, since basic and broad forms do not cover theft.
- Crime coverage – money and securities inside and outside the premises, plus employee theft.
- Exterior glass – who is responsible under the lease and whether your policy covers it.
- Tenant improvements limit – enough to repair doors, fixtures and finishes you own.
- Protective safeguards endorsement – what it requires and whether your alarm and monitoring meet it.
- Vacancy provisions – how long you can close before coverage is reduced, and whether a vacancy permit is available.
- Business income and extra expense – to cover a closure while repairs are made.
- Property deductible – realistic for frequent small losses.
Employee theft is its own topic; see employee theft and crime insurance for restaurants.
Comparing property and crime coverage with one application
Through Provident Financial Group, US Restaurant Insure quotes restaurant property and crime coverage from multiple carriers side by side and flags alarm, glass and vacancy terms before you bind. Certificates for landlords are issued quickly once coverage is in place. Call (866) 964-6660.
Frequently asked questions
Does restaurant insurance cover stolen cash from a break-in?
Not under standard property coverage, which excludes money and securities. You need crime coverage or a money and securities endorsement, often with a separate limit for cash on premises.
Is graffiti covered as vandalism?
Generally yes. Graffiti is willful and malicious damage, so removal and repainting are typically covered, subject to your deductible and any vacancy condition.
Will a burglar alarm lower my premium?
Often it can. A central station alarm, cameras and a drop safe are commonly considered by underwriters, but if your policy requires them as protective safeguards, you must keep them working.
What about an armed robbery during business hours?
Robbery of money is a crime coverage issue, and injuries to staff are workers comp claims. See does restaurant insurance cover robbery and holdups.
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