By Steven Conway
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November 7, 2025
I spend my time in Oklahoma restaurants, not just on the phone. I talk with owners, managers, chefs, and bar leads. I’ve seen the back office, the dish pit, the walk-in, the patio heaters, and the POS that freezes at 6 pm. I know what really derails a week. My job is to match insurance to the way you run service, so one bad hour does not wreck your month. Here’s what matters and how it fits together. The Core Coverage You Cannot Skip General Liability Start here. A guest slips on rainwater near the host stand in Midtown. A kid bumps a space heater on the patio in Norman. A to-go order triggers a peanut allergy. General liability covers bodily injury and property damage you are legally responsible for. Most policies also include personal and advertising injury (things like defamation, slander, or copyright). Some carriers exclude or limit this—so confirm it’s included and not excluded on your policy. Important note: When you sell or serve alcohol as a business , standard CGL typically excludes liquor liability. That exposure is handled by a separate Liquor Liability policy . (More on this in Part 2.) Commercial Property Think building (if you own it) and everything inside that makes you money: hood systems, fryers, ovens, walk-ins, lowboys, POS, tables, chairs, bar stock, dish machine, signage, heaters, even that neon sign your photographer loves. This is Oklahoma—hail, wind, freezes, and long hot spells hit equipment hard. Property coverage is your repair/replace budget for major damage when a covered cause of loss strikes. Two details make or break your claim: Replacement Cost vs. Actual Cash Value (ACV): Replacement cost pays what it takes to buy new equipment today. ACV deducts depreciation, leaving you short. Confirm which your policy uses. Coinsurance: Many policies include a coinsurance clause. If you insure below true replacement value, claim payments may be reduced proportionally. Confirm your requirement. Don’t forget exterior signs . Freestanding or roof-mounted signs take wind hard in Oklahoma and often need to be scheduled with a real dollar amount. Business Income and Extra Expense Power goes out in Edmond on a Friday. You lose the prime rib for Saturday plus the sales you needed to cover payroll. Business income replaces lost net income and pays unavoidable expenses like rent, payroll, loan payments, and utilities. Extra expense covers costs to reopen faster—temporary refrigeration, a generator, rush parts. Ask for: Utility Service Interruption (off-premises power outage) Civil Authority (your street is blocked after a nearby fire/tornado) Equipment Breakdown Property insurance loves fire/wind/water—but not internal failure. Equipment breakdown covers sudden, accidental mechanical or electrical breakdowns: HVAC boards, compressors, dish machine controls, POS systems. It’s inexpensive and saves more claims than owners expect. Food Spoilage and Contamination Two related but different protections: Spoilage: Pays when food is lost due to outage or equipment failure. Contamination: Pays when health authorities require you to discard product or sanitize. Some carriers add PR/crisis response. Don’t guess your spoilage limit. Walk the cooler, total meats/seafood/dairy/produce/sauces/prep—and add a cushion for holidays or event weekends. Workers’ Compensation If you have employees, Oklahoma law generally requires workers’ comp. It covers medical costs and a portion of lost wages (cuts, burns, slips, strains) and protects you from most employee injury lawsuits. Owners/LLC members/family can often be included or excluded by election—check your filing. Lowering cost long-term: track hood cleanings/grease trap service and slip incidents; enforce non-slip shoes; train new hires on lifting. Carriers reward documentation. Common Mistakes to Avoid Low spoilage limits (don’t insure $2,000 if your walk-in can hold $8,000) No utility service coverage (outages are more common than fires) ACV instead of replacement cost Coinsurance penalties from underinsuring Assuming liquor liability is included (it usually isn’t for alcohol businesses) “Set and forget” workers’ comp payroll estimates (audit pain later) Ready for Part Two This post covers the backbone. In the next post, we’ll dig into liquor liability, hired/non-owned auto, cyber, EPLI, leases, and Oklahoma “gotchas.” Coverage needs and limits vary by operations and contracts. This article is educational only and does not guarantee coverage. Review your policy with a licensed independent agent. For a no-pressure review, call 405.733.2886 , email steven@conwayinsuranceok.com , or visit ConwayInsuranceOK.com .
