Restaurant Insurance

Owning a restaurant means managing more than great food and exceptional customer service. From customer injuries and food safety concerns to property damage, equipment failures, and employee accidents, restaurants face a wide range of operational risks. Restaurant insurance is the set of policies that pays for customer injuries, kitchen fires, employee injuries and alcohol claims, so one bad night does not close your doors. Most owners start with general liability, commercial property and workers’ compensation, then add liquor liability if they serve beer, wine or cocktails.

Tabak Insurance works only with hospitality businesses. We specialize in providing insurance for restaurants, cafés, food trucks, fine dining establishments, quick-service restaurants, and other food service businesses. Whether you’re opening a new location or reviewing your current policy, contact us to build a customized restaurant insurance package that fits your business and budget.

Many smaller restaurants bundle general liability, property and business income into a business owner’s policy, which often costs less than buying each one separately. Ask about food spoilage and equipment breakdown coverage too. A failed walk-in cooler can wipe out a week of inventory.

If your staff delivers orders in their own cars, ask about hired and non-owned auto coverage. A personal auto policy may not respond to an accident that happens on a delivery run, which can leave your restaurant named in the lawsuit.

General Liability

General liability insurance is an essential piece of restaurant business insurance that protects restaurant owners in the event that a third party (e.g., a customer or vendor) brings a claim against them for things like property damage, injury, negligence, and libel. This insurance type can also provide coverage for legal fees or medical expenses should the need arise. Many commercial food establishments are required to have this type of restaurant insurance policy.

Liquor Liability

Liquor liability insurance protects your restaurant from being liable for certain actions of individuals who become intoxicated by drinking alcohol served or sold in their establishment (e.g., drunk driving). Serving alcohol carries a risk for restaurant owners, and liquor liability insurance is often required to obtain a liquor license. Actual coverage may vary by state and policy.

Property Coverage

Commercial property insurance covers restaurant losses related to income, crime, equipment damage, certain weather, and other kinds of damage to business property. This coverage is customizable — you can choose a named perils or open perils package. Named perils will only cover specific events that are listed in the policy, while open perils will cover anything that is not specifically excluded. This can make the open perils policy more comprehensive and a beneficial choice for restaurants.

Workers’ Compensation

Workers’ compensation insurance for restaurants provides financial compensation to employees who have been injured or made ill at work. This insurance type is often a requirement for businesses that retain employees. Workers’ compensation covers lost wages and medical costs, protecting the employer from negligence lawsuits.

Business Owners Policy Insurance (BOP)

BOP insurance is an overarching policy that contains all necessary coverage types and which can be customized to suit the needs of your business. This package includes general liability, commercial property, and business interruption insurance.

Directors and Officers (D&O)

D&O insurance protects businesses if an executive is sued individually for wrongdoing at work. They may be sued for neglect, misleading information, wrongful trading, and more. If a joint owner of a bar is sued for something he did as a bartender, D&O insurance will protect the other owner and the business itself.

Errors and Omissions (E&O)

The errors and omissions insurance protects businesses against losses due to professional errors. Examples of professional errors may include inaccurate expert advice, inadequate results, or negligence. A claim that a catering company failed to perform as promised would fall under E&O coverage.

What Are the Benefits of Restaurant Insurance?

Obtaining proper coverage for your restaurant comes with various benefits. If your restaurant has to halt operations due to damaged equipment or building infrastructure, this can lead to substantial financial losses. Restaurant insurance that covers property damage will allow you to obtain compensation for building repairs and lost income. The right coverage will make sure you are protected from unforeseen events and do not have to suffer financial setbacks.

Other accidents that are out of your control may happen at your restaurant — an employee may slip and fall, your property may be robbed, or a patron may start a fight. All of these issues can be addressed with the help of liquor liability insurance, property insurance, and workers’ compensation insurance, among other policies. Contact our team for more information about the benefits of full-coverage restaurant insurance.

What Affects the Cost of Commercial Restaurant Insurance

Carriers price each restaurant on its own risk. The biggest factors are annual sales, payroll and staff count, the share of sales from alcohol, your building and location, cooking methods such as open flame or deep fryers, hours, and claims history. Our guide to how much restaurant insurance costs breaks these down further.

Who Needs Restaurant Insurance?

Any business that prepares or serves food to the public needs restaurant insurance. The right mix of policies depends on how you operate:

• Restaurants: Full-service and fast casual restaurants need general liability, commercial property and workers’ compensation, plus liquor liability if they serve alcohol.
• Diners: Long hours and busy grills raise the risk of kitchen fires and burn injuries, so property and workers’ compensation coverage carry extra weight.
• Taverns: A tavern that serves food and alcohol needs liquor liability and assault and battery coverage on top of a standard restaurant package.
• Cafes: Cafes with patio seating, catering orders or delivery should confirm their general liability covers each one.
• Coffee shops: Hot drinks and steady foot traffic make burns and slip-and-fall injuries a common source of coffee shop claims.
• Food trucks: Food trucks need commercial auto coverage on top of general liability, and many events require a certificate of insurance before you can park and serve.

Restaurants We Insure

We write insurance for restaurants of every format, including full-service and fast casual restaurants, diners, cafes and coffee shops, food trucks and taverns that serve food. If you also run a bar, nightclub, or catering operation, we can cover it under one program.

Insurance requirements for restaurants vary by state, including liquor liability rules and workers’ compensation laws. Tabak Insurance writes restaurant insurance in more than 20 states and Washington, D.C. Find your state on our Areas We Serve page.

Get a Restaurant Insurance Quote

Don’t leave anything to chance. Protect your business and employees with comprehensive restaurant insurance coverage. Our entire book of business is hospitality, so we know how carriers rate a kitchen and what details support a better premium. To find the right restaurant insurance coverage for your business needs, contact a member of our team or get a fast online quote today.

Restaurant Insurance FAQs

What insurance does a restaurant need?

Most restaurants need general liability, commercial property and workers’ compensation. Restaurants that serve alcohol also need liquor liability. Many owners bundle general liability and property into a business owner’s policy, and landlords often set minimum liability limits in the lease.

How much is restaurant insurance per month?

It depends on your sales, payroll, alcohol sales, location and claims history. Larger or higher-risk restaurants pay more. Request a quote for pricing on your restaurant.

Can one policy cover a bar and restaurant?

Yes. Many restaurants with a full bar are insured under one commercial package that includes general liability, property, liquor liability and workers’ compensation. Tabak Insurance writes restaurant and bar operations together.

Is restaurant insurance required by law?

Workers’ compensation is required in most states once you have employees, and some states require liquor liability to hold a liquor license. Landlords and lenders usually require general liability and property coverage as well.

What Our Restaurant Insurance Clients Are Saying