Restaurant Insurance

A detailed menu of the coverages you need and why.

Restaurant owner reviewing insurance options. Find restaurant insurance.

Running your own restaurant can be a dream come true. But it's one that comes with its own, sometimes long list of risks. From potential lawsuits to fire damage, your business must be equipped with the proper coverage.

Fortunately, an independent insurance agent can help you get set up with the right restaurant insurance for you. They'll get you covered long before it's time to file a claim. But first, here's a behind-the-scenes look at restaurant insurance.

What Is Restaurant Insurance?

Restaurant insurance is a special type of business insurance that's designed to cover vulnerable aspects of your restaurant. Coverage is typically sold as a package of several protections together, including liability insurance, property insurance, workers' comp, etc. An independent insurance agent can help you find the right restaurant insurance policy for you. 

Why Do I Need Restaurant Insurance?

Restaurant insurance is necessary to protect your business from potentially costly disasters. Without coverage, after just one lawsuit or extreme property disaster like a destructive fire, you could end up going bankrupt and having to close your doors for good. Restaurant insurance protects business owners from having to pay out of their own pocket for certain repairs, etc. 

What Does Restaurant Insurance Cover?

Restaurant insurance comes with several important protections together in one convenient package. A few of the most common are:

  • Commercial property insurance: Covers your restaurant's physical building and inventory against certain disasters like fire, vandalism, etc. 
  • Commercial general liability insurance: Covers you against lawsuits filed against your business by customers or other third parties for claims of harm in the form of injury or property damage. 
  • Workers' comp: Covers your team from injury, illness, or death caused by job activities.
  • Spoilage: Covers lost inventory, etc. due to spoilage caused by a covered disaster like a power outage.
  • Equipment breakdown: Covers large appliances your restaurant uses, like boilers, against listed disasters.

An independent insurance agent can help you assemble the restaurant insurance package that best meets your unique business's needs.

Which Types of Coverage Are Necessary for My Restaurant?

When selecting restaurant insurance coverages, you'll want to consider all your bases. Your restaurant needs protection from a property damage standpoint, as well as a legal standpoint, and a staff safety standpoint. That means you'll at least need property coverage, liability coverage, and workers' comp coverage.

If you need help deciding which types of coverage are necessary for your restaurant, an independent insurance agent can be of great assistance. They'll help review your specific restaurant's operations and determine which coverages are best for the job. The two of you will create a package that makes you feel fully protected. 

Do I Need Restaurant Liability Insurance?

Your restaurant needs to at least be equipped with commercial general liability insurance to guard it against bodily injury and property damage-related lawsuits. But if your restaurant serves alcohol, you'll also need to get liquor liability insurance. This coverage protects your restaurant against lawsuits stemming from an intoxicated guest causing harm or property damage to others.

Your restaurant can even get sued if the intoxicated customer had left your premises before causing a problem. That's why liquor liability insurance is so critical for any restaurant that serves alcohol. An independent insurance agent can help your restaurant get equipped with this coverage.


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How Much Does Restaurant Insurance Cost?

The cost of your restaurant insurance varies based on several factors, including:

  • Your business's location
  • Your business's operations
  • How many employees you have
  • Your annual revenue
  • The coverages you select

However, restaurant insurance currently averages about $180 per month, or $2,160 per year. The cost of your policy could vary quite a bit. If you have a much larger restaurant or a chain, you could pay upwards of $10,000 annually or even more.

How Much Is Liability Insurance for a Restaurant?

Again, the cost of your restaurant's liability coverage will vary depending on how much coverage your restaurant needs, its specific liability risks, etc. But the current average cost of liability insurance for restaurants is about $80 monthly or $950 annually. An independent insurance agent can help set you up with exact quotes for restaurant insurance in your area. 

Best Insurance Companies for Restaurants

Finding restaurant insurance can be easy if you enlist the help of an independent insurance agent. They'll help shop and compare multiple carriers for you together in one place. But until then, here's a list of a few of our top picks for restaurant insurance companies. 

Best Restaurant Insurance Companies Star Rating
5 star rating
5 star rating
The Hartford
5 star rating
5 star rating
4.5/5 star rating

Restaurant Insurance Supplemental Application

When looking for your restaurant insurance application, you can easily find it online through a major carrier's website. However, an independent insurance agent can also help you apply for and purchase restaurant insurance. Better yet, they'll help you find and purchase the right type of restaurant insurance for your business at the cheapest rate possible. 

Why Choose an Independent Insurance Agent?

Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut through the jargon and clarify the fine print so you know exactly what you’re getting.

Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best restaurant insurance coverage, accessibility, and competitive pricing while working for you.

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