What Types of Insurance Are Necessary for Your Restaurant?
Running a restaurant comes with unique risks that can disrupt operations and cost your business thousands of dollars—if not more. That’s why having the right insurance for restaurants is essential to protect your business, staff, equipment, and customers.
In this guide, we’ll break down the types of restaurant insurance coverage you need and help you understand what each policy offers, how it affects your restaurant insurance cost, and how to find the best insurance for restaurants in your area.
1. Restaurant General Liability Insurance
At the core of any restaurant policy is restaurant general liability insurance. This coverage protects your business from third-party claims such as:
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Customer injuries (slips, falls, burns, etc.)
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Property damage
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Advertising and reputational harm
Whether you’re looking for bar and restaurant insurance or coverage for a small diner, this is a must-have. It’s often the first policy clients think of when asking, how much does restaurant insurance cost?
2. Commercial Property Insurance
If you own or lease your restaurant space, commercial property insurance protects the building and contents—such as kitchen equipment, furniture, signage, and inventory—from fire, theft, and vandalism. This is especially important when calculating your total restaurant insurance cost per month.
3. Workers’ Compensation Insurance
If your restaurant has employees (chefs, servers, cleaners), workers’ comp insurance is typically required by law. It covers medical expenses and lost wages if an employee is injured on the job. This is vital for insurance for a restaurant in any state, including restaurant insurance California, where compliance rules can be strict.
4. Liquor Liability Insurance
If your business serves alcohol, liquor liability coverage is essential. It protects your restaurant from claims resulting from alcohol-related incidents. This is often bundled into bar and restaurant insurance policies.
5. Business Interruption Insurance
Unexpected events like fires, storms, or equipment failure can shut your business down. Business interruption insurance helps cover lost revenue and operating expenses during the downtime, making it an important part of your restaurant insurance coverage.
6. Commercial Auto Insurance
If you deliver food or use vehicles for business operations, commercial auto insurance protects your vehicles and drivers from accidents, liability, and property damage.
7. Cyber Liability Insurance
As restaurants increasingly rely on digital POS systems and online ordering, cyber liability insurance protects your business from data breaches, cyberattacks, and loss of customer information.
What Affects Restaurant Insurance Costs?
Whether you’re searching for a restaurant insurance quote or want to know the average restaurant insurance cost, here are a few things that impact pricing:
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Restaurant size and seating capacity
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Location (e.g., restaurant insurance California may cost more than in other states)
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Services offered (e.g., dine-in, delivery, alcohol sales)
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Number of employees
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Claims history
Most businesses pay between $100 to $500/month, but your restaurant liability insurance cost may vary depending on your needs and the provider. Use search terms like restaurant insurance near me or insurance for restaurants cost average to compare rates from multiple restaurant insurance companies.
Final Thoughts
Having the right insurance for restaurant operations isn’t just a smart business move—it’s essential for long-term success. With the right mix of policies tailored to your business model, you can focus on what you do best: serving great food and creating memorable dining experiences.
If you’re unsure which policy fits your needs, consult a licensed agent and get your restaurant insurance quote today.