Does Food and Beverage insurance cover employee theft?

Learn if food and beverage insurance can provide protection if you experience employee theft.

David Granahan - Writer for NEXT Insurance
By David Granahan
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

Good news — yes, it can. Sadly, employee theft happens all too often. The California Restaurant Association reports that almost 95% of businesses experience it at some point. So, to avoid huge financial losses, food and beverage business owners can seek protection.

How Food and Beverage insurance can help

And that's where food and beverage insurance comes in. This coverage includes commercial property insurance, which can offer replacement cover for goods and inventory, also known as business personal property.

Stolen goods that can be covered

With so many items needed for smooth daily operations in your restaurant or catering business, let's dive into some examples of what can be covered for food and beverage businesses.

  • Equipment and supplies, like kitchen appliances or utensils
  • Inventory, such as food ingredients
  • Furniture, such as booths or bar stools
  • Upgrades, such as new light fixtures or bathroom hand-driers

» Not sure how to train? Here's how to build an effective restaurant training program

Other events that can be covered

Theft is one thing, but there are numerous other mishaps you may face. So, let's take a look at some liability examples and which policies food and beverage insurance can include to help protect you in each case.

  • Slander claims: If your business is accused of reputational harm to another business, general liability insurance can help with legal and defense fees.
  • Customer injuries: General liability insurance can help cover you if a customer is injured on your premises.
  • Employee injuries: Workers' compensation insurance can help cover medical bills and lost wages for employees injured while working.
  • Damage to equipment or property: Commercial property insurance can help financially with operating expenses and lost income caused by the damage.

» Learn more about how commercial property insurance protects your business

Protect your business from employee theft with NEXT

Employee theft can happen for a variety of reasons — some malicious and some not. No matter the reason, it can be financially damaging to small businesses, particularly. So, to avoid business interruption and high replacement costs, food and beverage insurance is worth considering.

And NEXT can have you covered. With affordable, tailored business insurance and an online instant quote, you can reduce stress knowing you're covered in case of employee theft. Once you purchase the coverage you need, you instantly get your certificate of insurance, and you can share it 24/7 with the NEXT app.

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