Published On: September 21, 2022

Insurance can be a great benefit to many different types of businesses. Restaurant insurance is no different. There are several liabilities that need to be covered when you are in the restaurant business. Here are some of those liabilities and the insurance we recommend for covering them:

What Is Covered With Restaurant Insurance?

Restaurant insurance covers several different areas. When you own a business, you need to understand what liabilities you have and do not have. At Tabak Insurance, we are experts in the hospitality industry’s liabilities and the insurance that covers them. There are two main types of insurance—liability, and property.

The difference between the two is as follows:


  • Workers’ Compensation
  • Employers’ Liability
  • Excess Liability
  • Liquor Liability
  • Employee Benefit Liability
  • Auto Liability
  • Assault and Battery


  • Windstorm
  • Food Contamination or Food Spoilage
  • Flood
  • Equipment Breakdown
  • Crime or Employee Dishonesty
  • Business Income

Here are the policy items that may or may not be covered under general liability insurance.

General Liability Insurance for Restaurants

This insurance is also called commercial general liability. The coverage guards business against third-party claims. These can be claims that are brought up by clients, vendors, customers, contractors, and other third parties. When these claims are made, general liability provides coverage. The protection it provides includes libel claims, bodily injury, property damage, and negligence. 

Who Is Covered? 

If a suit is brought against them, owners of the business, employees, and their spouses are protected by general liability. This coverage will also pay for the cost of defending or investigating claims, legal expenses, fees, court costs, and other related expenses. 

General liability does not cover all costs. It does not cover liquor-related incidents or on-the-job employee injuries. You will need more specific insurance to cover those situations.

Other Types of Insurance

There is no one-size-fits-all policy when it comes to insurance. That is why we offer several different varieties. Here are the types of restaurant insurance you are able to pick and choose from: 

Business Owner Insurance Policies: This type of insurance merges property and general liability so that it can be found on one plan. It protects against injuries and business interruption, as well as property damage at one price.

Commercial Property Insurance: This protects your property as well as the property of those in your care. It protects against damage or loss caused by several things including, theft, vandalism, natural disasters, kitchen fires, and equipment breakdowns.

Officers and Directors Insurance: This protects those who are on the corporate side of businesses such as officers and directors, as well as their spouses. The claims that are made against these people are general liability claims made by competitors, investors, customers, vendors, or employees.

Omissions and Errors Insurance: If there is inadequate work while preparing food, and drinks or going about general business operations, this insurance covers that. 

Liquor Liability Insurance: If you or an employee serve liquor to a person who is already intoxicated and they cause themselves personal injury or damage to your property; liquor liability protects you from medical costs, legal fees, and settlements.

Workers’ Compensation Insurance: Workers’ comp is required for operable businesses in most states. It covers the cost of lost wages, legal costs, and medical expenses if your employee has been injured at work. 

More About Property

A huge aspect of owning a business, like a restaurant, is the property location. What does property insurance cover? What is not covered? Here are some losses that Tabak Insurance covers under property insurance: 

Spoilage: In the event that a refrigerator breaks down due to a power outage, a property policy may cover the perishable products. There are a few types of policies that also cover perishable items kept on the property of the business.

Natural Disasters: Natural disasters can devastate a business by destroying the property and causing it to temporarily halt operations. Property insurance may cover damages or losses caused by a natural disaster. 

Equipment Breakdown: Equipment such as refrigerators, freezers, ovens, and dishwashers can often stop working or malfunction. You may be covered if the breakdown of the equipment causes other issues like flooding. 

Criminal Activity: If a vandal breaks your windows or doors, or a thief steals your computer, property liability may cover you from criminal activity. 

Accident: Accidents happen often. If there is proof that an accident has occurred at no fault of your employee, the insurance may help with the costs. 

Tabak for Your Restaurant Insurance 

Restaurant insurance, liabilities, and coverage can seem overwhelming from the outside. At Tabak Insurance Agency, we take the more complicated terms and make them accessible to you. We’re here to connect you to the best fitting policies for your business. Every restaurant has its own liabilities they need to make sure are covered. We help make sure that you are getting all the coverage you need without paying more than you should. 

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