Restaurant Insurance

Why do restaurants need insurance?

Whether your focus is fast food or fine dining, no restaurant business is immune from risk. Policies designed for restaurant owners provide financial protection from food spoilage, kitchen fires, and other common issues.

An equipment breakdown, a claim of foodborne illness, or a chef's injury can happen at any restaurant. The resulting loss of income or cost of a lawsuit can hurt your bottom line – or in some cases, even force you to close.

Restaurant insurance can't prevent these incidents, but it will reduce your risk of the fallout.

What types of insurance coverage do restaurants need?

These insurance policies cover the most common risks faced by businesses in the restaurant industry.

Business owner’s policy

A BOP bundles commercial property insurance and general liability insurance under one plan. It’s one of the most popular and cost-effective options for a restaurant.

Workers’ compensation insurance

Most states require workers' comp for restaurants that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.

General liability insurance

This insurance policy provides liability coverage and financial protection from common business risks, such as a customer injury at your restaurant.

Commercial auto insurance

This policy covers the cost of accidents involving any delivery trucks or other vehicles owned by your restaurant, from damage caused to another person's car to medical bills.

Liquor liability insurance

This policy covers legal fees, property damage, and medical costs if alcohol is served or sold at your restaurant to a visibly intoxicated person who then proceeds to harm others.

Cyber insurance

This policy helps restaurants recover from cyberattacks and data breaches. It's recommended for any business that stores customer information.

How much does restaurant insurance cost?

A restaurant that focuses on takeout will pay less for insurance than a large bar and grill. Factors that affect restaurant insurance costs include:

How do I get insurance for my restaurant?

It’s easy to get insurance coverage for your restaurant if you have your business information on hand. Our insurance application will ask for basic facts about your small business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:

Insureon's licensed agents work with top-rated U.S. insurers to find coverage that fits your restaurant, whether you work independently or hire employees.