Should Restaurants in South Carolina Carry Crime Insurance? | Davis Insurance Associates

Why Restaurants in South Carolina Should Carry Crime Insurance

By Brad Davis, CIC (October 28,2025) 
Davis Insurance Associates, Myrtle Beach, South Carolina

Running a restaurant in South Carolina takes hard work, long hours, and a lot of trust in your employees and vendors. Between cash transactions, tip handling, inventory management, and deliveries, restaurants are especially vulnerable to one often-overlooked risk: crime-related losses.

That’s where Crime Insurance comes in.

At Davis Insurance Associates, we help restaurant owners across Myrtle Beach, Conway, and all of South Carolina protect their businesses from more than just fire or storm damage. Crime insurance fills a critical gap that most standard property and liability policies don’t cover — and it can make the difference between a costly loss and business as usual.

What Is Crime Insurance?

Crime insurance (sometimes called “commercial crime coverage”) protects your business from financial losses caused by theft, fraud, or dishonest acts — whether by outsiders or even trusted employees.

While property insurance covers physical losses like fire, wind, or vandalism, and general liability covers injuries or lawsuits, crime insurance focuses on financial theft and deception.

Common coverages include:

• Employee Dishonesty (Fidelity Coverage): Protects against theft of money, securities, or property by employees.

• Forgery or Alteration: Covers losses from forged checks, money orders, or other financial instruments.

• Computer Fraud and Funds Transfer Fraud: Protects against electronic theft, such as hackers diverting payments or transferring funds illegally.

• Inside/Outside the Premises Coverage: Covers theft or robbery of cash and property either inside the restaurant or while it’s being transported to the bank.

Why Restaurants Are Especially at Risk

Restaurants are high-traffic, fast-paced environments with a lot of cash flow and frequent staff changes — all of which can create opportunities for theft or fraud. Some common crime-related exposures include:

• Cash handling and tip theft: Daily cash transactions and gratuities make restaurants prime targets for internal and external theft.

• Inventory shrinkage: Missing food, alcohol, or supplies can add up quickly if not tracked carefully.

• Refund and gift card fraud: Employees or customers manipulating point-of-sale systems.

• Vendor and delivery scams: Fake invoices or overbilling schemes that slip past busy owners or managers.

Even small thefts over time can turn into large cumulative losses — and unfortunately, many restaurant owners only discover the problem after thousands of dollars have disappeared.

According to breakdown by Loomis, restaurants face theft risks ranging from food/inventory losses and POS abuse, to accounting fraud and even time-theft. Loomis U.S.

Doesn’t My Other Insurance Cover That?

Probably not.

Most commercial property policies exclude theft by employees or fraud-related losses. Similarly, general liability insurance covers lawsuits but not theft of your business funds or goods.

Without crime insurance, your business may have no coverage at all if:

• An employee skims cash or manipulates sales records

• Someone forges a company check

• Fraudulent Money Orders or Counterfeit Money

• Night deposit money is stolen during transport

Crime coverage is designed specifically for these situations. It bridges the gap between property, liability, and cyber insurance.

How Crime Insurance Works for SC Restaurants

In South Carolina, restaurant crime insurance can be written as a stand-alone policy or added as an endorsement to your Business Owners Policy (BOP) or Commercial Package Policy.

Coverage limits typically start at $10,000–$25,000 and can be customized based on your restaurant’s size, number of employees, and cash flow. Premiums are generally affordable — often just a few hundred dollars per year for small to midsize restaurants.

At Davis Insurance Associates, we can help you identify some exposures, compare coverage options, tailor your policy, and keep your coverage updated as your restaurant grows.

Real-World Example

A Myrtle Beach restaurant recently discovered that a trusted manager had been diverting cash deposits for months. By the time it was uncovered, the total loss exceeded $15,000. The owner’s property and liability policies offered no help — but a properly written crime insurance policy could have reimbursed most, if not all, of that amount.

Unfortunately, many small business owners only learn about this coverage after a loss.

Protecting Your Restaurant’s Bottom Line

Running a restaurant means trusting people — and that trust is important. But smart business owners also prepare for the unexpected. Crime insurance is one of those safety nets that you hope to never use, but can be invaluable when you need it.

At Davis Insurance Associates, we work with restaurant owners throughout South Carolina to build complete coverage programs — from workers’ compensation and property insurance to crime and cyber liability.

If you’re not sure whether your restaurant’s insurance program includes crime coverage, we’d be happy to review it with you and explain your options.

👉 Give Davis Insurance Associates a call today for a no-obligation review of your restaurant’s policy – (843) 213-0000.

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Disclaimer: This article is intended for general informational purposes only and does not replace the terms, conditions, or coverages outlined in your insurance policy. Always read your full policy carefully to understand your specific coverages and exclusions.