Do I Need Employers Liability Insurance for My Restaurant Business?
Running a restaurant is about more than delicious food and customer service—it’s about protecting your business, your staff, and your livelihood. One question many owners ask is: “Do I need Employers Liability Insurance for my restaurant?” The answer is a resounding yes in most cases.
Whether you’re operating a small local eatery, a high-traffic bar, or a growing franchise, having the right coverage in place—including Employers Liability Insurance—is essential for financial security and legal compliance.
What Is Employers Liability Insurance?
Employers Liability Insurance protects restaurant owners from claims made by employees who suffer work-related injuries or illnesses not covered under workers’ compensation alone. If an employee sues your restaurant for negligence, this insurance can help cover:
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Legal defense costs
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Court-ordered damages
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Settlements and associated legal fees
Is Employers Liability Insurance Required for Restaurants?
In most states, yes. If your restaurant has one or more employees, you are typically required by law to carry workers’ compensation, and Employers Liability Insurance is often included as part of that policy.
For instance, if you’re operating in the South, Georgia restaurant insurance laws require coverage for employee-related injuries. Not having the proper insurance can lead to severe legal and financial penalties.
Why Employers Liability Insurance Matters for Bars and Restaurants
The restaurant industry faces a high rate of workplace injuries—from burns and cuts in the kitchen to slips and falls on a wet floor. For bars and nightlife venues, the risk is even greater due to late hours, alcohol service, and high customer traffic.
That’s why bars and restaurants insurance packages commonly include this coverage. It’s not just a legal requirement—it’s a smart way to safeguard your team and your business reputation.
How Much Insurance Does a Restaurant Need?
You might be wondering:
How much does insurance cost for a restaurant?
How much is insurance for restaurants, especially with employee liability coverage included?
Here’s a quick breakdown:
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Basic restaurant insurance with general liability:
$1,200–$3,500/year -
With Employers Liability Insurance and workers’ comp included:
$2,500–$6,000/year -
Franchise locations and higher-risk businesses (bars, nightclubs, etc.) may pay more
Several factors affect cost, including your location, claims history, employee count, and whether you’re part of a franchise restaurant insurance program.
Insurance for Franchise Restaurants
If you own a franchised location, check whether the brand requires specific policies. Many chains mandate participation in franchise restaurant insurance programs, which bundle:
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General liability
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Property insurance
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Workers’ comp and employers liability
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Business interruption coverage
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Health insurance for restaurant owners and staff
Franchisees often benefit from group pricing, making insurance more affordable and comprehensive.
Choosing the Right Restaurant Insurance Provider
There are many insurance providers that offer specialized solutions. For example, GEICO restaurant insurance is known for offering general liability and commercial property coverage. However, not all providers include robust Employers Liability Insurance—so always review policy details carefully.
If you’re in Georgia or another state with strict coverage laws, work with a provider that understands Georgia restaurant insurance requirements to ensure you’re fully protected.
Final Thoughts: Do You Really Need It?
If you employ anyone—chefs, dishwashers, servers, bartenders—the answer is clear: yes, you need Employers Liability Insurance. It’s an essential part of your restaurant insurance package, whether you run a small café, a bustling bar, or a large franchise.
Investing in the right coverage not only protects your business—it protects the people who make your business possible.