How Much Does Restaurant Insurance Cost?

The average restaurant insurance cost for a Business Owner’s Policy (including general liability and commercial property coverage), Worker’s Comp, and Liquor Liability Insurance is approximately $4300 annually. This figure varies widely, depending on the package policies and coverage choices available from your insurer; as well as the nature, location, and size of your business.

Comprehensive coverage is essential to restaurant owners and other hospitality or food service providers. Diners, caterers, taverns, and food trucks all experience events that can put their business at risk without a solid safety net in place.

Some of the situations restaurant insurance covers include:

  • Injuries like falls, burns, and cuts that can happen to customers or employees
  • Liability for food-borne illnesses due to improper handling or contaminated ingredients
  • Damage to or loss of property and inventory
  • Business interruptions from a variety of causes


How Much Does a Restaurant Business Owner’s Policy Cost?

A BOP bundles the most common policies together for significant cost savings. This type of insurance coverage may include general liability, business interruption, and commercial property insurance. Pricing is based on location, the value of covered property and equipment, and other factors.

Typical restaurant insurance costs for a business owner’s policy are:

  • Average: $180 per month, or $2,160 annually.
  • Range: Most policies are between $1100 and $10,500 each year.


How Much Does General Liability Insurance Cost for Restaurants?

A general liability insurance policy covers customer slip and fall injuries, property damage caused by your employees or equipment, copyright or advertising liability, and more. Costs are based on the size of your business.

  • Average: $80 per month, $950 each year.
  • Range: Most restaurants pay between $500 and $6000 annually.


How Much Does Commercial Property Insurance Cost for Restaurants?

Commercial property insurance may be required to obtain a commercial lease, and it covers your business against property damage or loss from natural disasters, theft, or vandalism. The value of the property to be covered will largely determine the price.

  • Average: $62 per month, or $742 per year.
  • Range: Typical annual premiums fall between $500 and $2,500.


How Much Does Workers’ Compensation Insurance Cost for Restaurants?

caution wet floor signThis policy is legally required in most states, and it should be included in estimating your restaurant insurance cost. Worker’s comp provides essential coverage for employees who are injured at work. Pricing varies, depending on your location, number of employees, and type of operation.

  • Average: Cost per year of $1,500, or $125 per month.
  • Range: Usually between $600 and $10,000 in annual premiums.


How Much Does Liquor Liability Insurance Cost for Restaurants?

If you serve alcohol as part of your business, liquor liability insurance is usually required. This restaurant insurance must-have protects you from liability for serving alcohol to intoxicated customers who go on to cause property or personal damages.

  • Average: About $50 per month, or $620 each year.
  • Range: Most policies range from $350 to $3000 annually.


The Most Affordable Insurance Is Cooked Up Fresh for Your Business

While these average restaurant insurance costs offer a general idea of how much you may need to invest in protecting your small business, there is no one-size-fits-all restaurant insurance. A customized restaurant insurance quote from Tabak Insurance Agency will provide the best coverage options at a price that protects your bottom line.

To find out exactly how much to budget for restaurant insurance next year, give our expert agents a call or get an online quote today. With 20+ years of experience providing insurance to restaurant and bar owners nationwide, we can cook up a generous portion of coverage to satisfy your appetite for protection.