Restaurant Insurance

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To say restaurant owners have enough on their plate without worrying about unexpected disasters is an understatement. Thankfully, a good restaurant insurance policy can help give you peace of mind.

Restaurant insurance protects your business from the unexpected. Whether that’s slips and falls on your property, damage to your venue, or lawsuits, our customized restaurant insurance policies ensure you’re covered.

Who Needs Restaurant Insurance?

 Every restaurant should have a business insurance policy. This includes, but isn’t limited to:

Most states mandate registered restaurants to hold insurance policies. However, even if this weren’t the case, you would be doing your business a disservice by forgoing restaurant insurance. This insurance protects you from legal, financial, and reputational risks.

Our client, Lillian, told one of our agents that she would have had to permanently close down if it weren’t for her restaurant insurance.

“I don’t know what I would have done without JW Surety! When my kitchen caught fire due to a deep fryer issue, I lost everything, from my appliances to my food storage. And don’t get me started on the smoke damage! Thankfully, my insurance policy covered the damage and income losses from closing down temporarily. I am thrilled to announce that as of last month, we are finally up and running again.” – Lillian P.

Having restaurant insurance won’t prevent accidents and unfortunate events from taking place. However, it will protect you and your business from any financial liabilities that may arise as a result.

The Importance of Restaurant Insurance

Restaurant insurance allows your business to continue to thrive when disaster strikes.  

Benefits of restaurant insurance include:

  • Appliance Breakdown Coverage – Refrigerators or other expensive equipment are prone to breaking down, especially in extreme temperatures (like hot kitchens). Insurance can help you cover replacement or repair costs.
  • Employee Protection – From hot pots to slippery floors, restaurants can be hazardous environments to work in. According to the National Safety Council, a worker is injured on the job every 7 seconds. Workers insurance ensures if an employee is injured, they will be compensated.
  • Property Damage Protection – From kitchen fires to vandalism, insurance helps get your restaurant back into tip-top shape when disaster strikes. Note that basic coverage at many companies does not include floods, natural disasters, or other major weather events.
  • Lawsuit Assistance – If a customer tries to sue you for food poisoning, slipping on your property, or other bodily injury, professional liability insurance can help cover legal expenses.
  • Supplementing Lost Income – If an event requires your restaurant to close, this results in lost revenue. There are restaurant insurance policies that will help cover those losses.
  • Covering Large Expenses – Unexpected events can be expensive. So much so that without insurance coverage, they can bankrupt a business. Insurance allows you to pay for these costs while minimally dipping into your own funds or assets (if at all).

Types of Restaurant Insurance Coverage

There are many types of restaurant insurance. What you need will depend on how your business operates and the state you reside.

General Liability Insurance 

A blanket policy that covers property damage, bodily injury, theft, and in some cases, lawsuits. This is one of the most popular small business insurances.

Business Interruption Insurance

Reimburses losses in the event of business closure due to theft, fire, or acts of nature (wind, hail, lightning). You may also hear this type of insurance referred to as business income insurance. This coverage may be included in a commercial property or business owners policy.

Commercial Auto Insurance 

Covers bodily harm and vehicle damage in the event of a car accident or other motor vehicle event. This type of policy isn’t needed for all restaurant businesses. It is mainly for caterers, those with company vehicles, or those that offer delivery services.

Commercial Property Insurance 

Covers your business property and its contents (equipment, inventory, furniture) in the event of theft, vandalism, fire, or weather-related damage.

Employment Practices Liability Insurance

Protects you against costs arising from employee misconduct. Example: one of your chefs is consistently harassing a server, resulting in a lawsuit landing on your desk.

Liquor Liability Insurance

Protects your business from accidents arising from intoxicated customers. In some states, this is a requirement for getting a liquor license.

Professional Liability Insurance 

Protects against losses that may not be covered by regular liability insurance. This covers if a customer sues you for alleged acts or omissions while serving them. Also referred to as Errors and Omissions Insurance (E&O insurance).

Workers’ Compensation Insurance 

Chefs, waiters, cleaning staff, and virtually anyone working at the restaurant are exposed to a certain level of risk. This policy covers medical care, medical bills, lost wages, and disability for employees injured on the job. In most states, this insurance policy is legally required for any restaurant with employees.

Business Owners Policy (BOP)

If you need a combo of general liability insurance, commercial property insurance, and business interruption insurance, inquire about a Business Owners Policy (BOP).

Getting a Restaurant Insurance Quote

Your restaurant business is unique, so why should your insurance policy be one size fits all? That’s why we offer custom restaurant insurance policies tailored toward your needs. Whether you just need one type of coverage or several, JW Surety offers policies that cover what you need at a great price!

1. Get a Restaurant Insurance Quote

Fill out our online insurance application. This form sends a free insurance quote directly to your inbox.

Information that you will need on hand includes:

  • Business Information: Name, start year, description of operations.
  • Federal EIN
  • Contact Information

2. Purchase Your Insurance

Your insurance quote will arrive in your inbox. From there, you can purchase it online. If you have any questions or want to further customize your insurance policy, please get in touch with one of our insurance agents at 888-592-6631.

How Much Does Restaurant Insurance Cost?

Restaurant insurance costs an average of $249 a month. However, keep in mind this number combines multiple policies. The coverage and policies that your restaurant business needs may differ depending on factors like business size, number of employees, business experience, revenue, and past insurance claims.

 

Cost of Most Popular Restaurant Insurance Policies

Type of Policy

Average Monthly Cost

Average Yearly Cost

Business Owners Policy (BOP)

$57

$684

Commercial Auto Insurance

$147

$1,742

Commercial Property Insurance

$67

$804

General Liability Insurance

$42

$504

Workers’ Compensation Insurance

$45

$542

 

How can I save money on restaurant insurance?

You can save money on your restaurant insurance by getting a policy with a higher deductible, bundling business policies, or paying your insurance premium annually.

Legal Requirements for Restaurant Insurance

The state that your restaurant operates in will dictate the type and amount of insurance coverage you need. Generally, this information is available through your state’s Department of Insurance or health regulatory agency.

Additionally, you will want to look at your contractual obligations, particularly if you have a lease agreement.

Frequently Asked Questions about Restaurant Insurance

How do I file an insurance claim?

 Submit your claim to your insurance company in a timely manner. Most accept claims over the phone but may also take them through their app, email, or online form.

Once an insurance adjuster is assigned to your case, you can send any evidence to them. This may include photos, videos, and/or witness statements. If there are witnesses to the incident you’re reporting, we highly suggest taking down their contact information at the time of the event.

Your adjuster will review everything to evaluate the damage and determine what is covered.

  • Most insurance claims that restaurant owners send us are related to bodily injuries, food poisoning, and property damage as a result of theft, vandalism, or poor weather conditions.

What are Certificates of Insurance?

A Certificate of Insurance (COI) is a document that proves you have an insurance policy. It summarizes your policy, as well as its conditions. In this document, you will find:

  • policyholder’s name
  • policy’s effective date
  • type of coverage
  • policy limits

Do I need insurance if I run a small restaurant?

Yes, you need insurance if you run a small restaurant. However, chances are you won’t need as much coverage as a large restaurant. Depending on your business model and operations, you may also not need certain coverages, like vehicle insurance. Remember that good restaurant insurance caters to your business’ needs.

No matter your restaurant size, insurance is imperative to help protect you and your business from the financial liabilities that arise from injuries, theft, property damages, and lawsuits. We handle the unexpected so you can handle your day-to-day operations to make your business thrive!

Get a free restaurant insurance quote today!

Sources

Commercial & Business Insurance Guide. (n.d.). In JW Surety Bonds. Retrieved January 29, 2025, from https://www.jwsuretybonds.com/business-insurance

McKinsey Global Insurance Report: Trends for 2025. (n.d.). In McKinsey. Retrieved January 29, 2025, from https://www.mckinsey.com/industries/financial-services/our-insights/global-insurance-report

Workplace Injuries by the Numbers - National Safety Council. (n.d.). In www.nsc.org. Retrieved January 29, 2025, from https://www.nsc.org/workplace/resources/infographics/workplace-injuries-by-the-numbers

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