What is Restaurant Signage Coverage?
Restaurant Signage Coverage is property insurance that protects your exterior and interior signs including storefront signs, awnings with signage, monument signs, pole signs, window graphics, neon signs, LED displays, menu boards, and any other permanent or semi-permanent signage. This coverage typically protects against damage from fire, wind, vandalism, vehicle accidents, fallen trees, and other covered perils.
Coverage can be included in your commercial property policy as part of building coverage (for attached signs) or business personal property (for freestanding signs), or it may need to be specifically scheduled with stated values for expensive custom signs. Some policies have sublimits for signs (like $2,500 or $5,000) unless you purchase additional coverage. The coverage typically pays replacement cost to repair or replace damaged signs.
What You Need to Know
Common Coverage Limitations:
Many restaurant owners don’t realize that their commercial property policy may have inadequate coverage for signs—a standard policy might only provide $2,500 for sign damage, which won’t come close to replacing a high-quality custom sign.
Ensuring Adequate Coverage:
If you have expensive exterior signage, you should schedule it specifically on your policy with its actual replacement value to ensure adequate coverage.
Liability Considerations:
From a liability perspective, if your sign falls and injures someone or damages property (due to poor maintenance, wind damage, or structural failure), you could face premises liability claims covered under your general liability policy. Regular sign maintenance is essential both to prevent liability incidents and to preserve your property investment.
Why It Matters for Restaurant Owners
Your restaurant’s signage is a critical business asset that attracts customers, establishes your brand identity, and can represent a significant investment—custom-designed exterior signs can easily cost $10,000 to $50,000 or more, and illuminated or electronic signs can be even more expensive.
When Coverage Matters:
If your sign is damaged by a storm, destroyed by a vehicle accident, or vandalized, you need insurance coverage to replace it.
Review Your Policy:
Check your policy carefully to understand:
- What coverage you have for signs
- Where that coverage appears (building coverage, business personal property, or scheduled equipment)
- What the limits are
- Whether those limits are adequate to fully replace your signage if needed
For High-Value Signage:
For restaurants with multiple expensive signs or unique custom signage, purchasing additional scheduled coverage with agreed values ensures you can fully replace your signs after a covered loss without being underinsured.