Do I Need Employers Liability Insurance for My Restaurant Business?
Running a restaurant comes with numerous responsibilities—one of the most crucial being insurance for restaurants. While many owners focus on general liability and property coverage, employers liability insurance is equally important for protecting both staff and your business.
What Is Employers Liability Insurance?
Employers liability insurance (often part of a workers’ compensation policy) covers legal costs, settlements, or judgments when an employee alleges your negligence led to their injury or illness. Even if you already carry workers’ compensation, this additional layer of protection can be invaluable.
Why Restaurants Should Consider It
The restaurant environment is inherently risky—hot surfaces, wet floors, heavy lifting, sharp tools, and long hours. If an employee is injured and believes your business is at fault beyond what workers’ comp can cover, a lawsuit could arise. Employers liability insurance helps cover:
-
Legal defense fees and court costs
-
Settlements or jury awards
-
Employee claims not fully handled by workers’ comp
Is It Legally Required?
In many U.S. states, workers’ compensation insurance is mandatory for restaurant employers. Typically, this coverage includes an employers liability component. But requirements vary, so check your state regulations. Even if not required, it’s often included in bar and restaurant insurance packages to safeguard your business.
How It Fits with Other Coverages
A comprehensive insurance strategy for restaurants generally includes:
-
Restaurant general liability insurance – protects against customer injuries or property damage
-
Property insurance – covers damage to your building, equipment, stock, and inventory
-
Liquor liability – essential if you serve alcohol
-
Business interruption insurance – addresses lost revenue from covered events
-
Employment practices liability insurance (EPLI) – protects against claims like discrimination, harassment, or wrongful termination
Employers liability fits right in, covering employee injury claims not fully addressed by workers’ comp.
How Much Does It Cost?
You’re likely searching “restaurant insurance cost” or “restaurant insurance cost per month.” Here’s what you should know:
-
A small restaurant (under $1M annual revenue) might spend:
-
General liability: $800–$2,000/year
-
Workers’ comp with employers liability: $2,300–$3,500/year
-
-
Premiums depend on staff count, payroll size, location, number of employees, and risk profile
Use “restaurant insurance quote” tools from different providers to compare rates for your specific needs.
Benefits Beyond Compliance
-
Shields against costly restaurant liability insurance cost surprises
-
Offers greater restaurant insurance coverage, including employee-related claims
-
Improves credibility with staff and partners—shows you take safety seriously
-
Can reduce long-term average restaurant insurance cost by avoiding litigation
How to Find the Best Insurance for Restaurants
When searching for coverage—terms like “insurance for restaurant,” “restaurant insurance companies,” or “restaurant insurance near me”—follow these steps:
-
Identify your needs: number of employees, alcohol service, delivery, kitchen risk spots
-
Get multiple quotes: compare monthly costs and annual premiums
-
Bundle policies: Business Owner’s Policy (BOP) often includes general liability, property, and employers liability
-
Check insurer reputation: responsiveness, claims service, financial ratings
-
Review annually: update your policy as your team or operations grow
Final Take
If you employ staff—even part‑time—you should strongly consider employers liability insurance. It complements your workers’ comp and adds another layer of protection against employee-related claims. Include it as part of a broader bar and restaurant insurance strategy to manage risks, control your restaurant insurance cost, and ensure peace of mind.
By understanding your legal obligations and proper coverage mix, you’ll be better prepared to handle claims and keep your restaurant thriving.