Restaurant Insurance
Shield your restaurant from expensive claims with affordable, comprehensive restaurant insurance from Food Liability Insurance Program (FLIP)!
Benefits of Insurance for Restaurants
Restaurant insurance comes with many perks for your business.
Shields Against Out-of-Pocket Costs
Restaurant insurance protects your business from attorney fees, medical bills, property repairs, and other claims-related costs.
Boosts Your Business Reputation
Advertising your business as licensed and insured shows customers and partners that you are a trustworthy professional.
Meets Coverage Requirements
You may be required to carry liability insurance for your restaurant, either by local laws or the owner of your rented commercial space.
Provides You With Peace of Mind
Running a business can be stressful. With restaurant insurance, you get peace of mind knowing you’re prepared and protected with the #1 name in food and beverage insurance.
What Is Restaurant Insurance and Who Needs It?
Restaurant liability insurance is a business owner’s policy (BOP) designed to protect your business from expensive claims through a combination of coverages, including:
- General liability
- Product liability
- Commercial property
- Business income interruption
- Employment practices liability insurance (EPLI)
These essential coverages can cover some or all of the cost of the most common liability claims you face while running a restaurant. That means less money out of your pockets and more money for your business.
Restaurants that need insurance include:
- Any Brick-and-Mortar Restaurants
- Bakeries
- Cafes/Coffee Shops
- Delis
- Diners
- Fast Food Restaurants
- Food Delivery Services
- Ghost Kitchens
- Pizzerias
- Sandwich Shops
We’re proud to offer coverage to each of these businesses. Get your free quote online in minutes!
Not ready to settle down with a permanent restaurant location yet? No problem! FLIP offers comprehensive mobile food business insurance tailored for food trucks, trailers, carts, and stands.
How Much Does Restaurant Insurance Cost?
FLIP’s restaurant insurance costs roughly $2,500 per year on average, with most policyholders paying between $800 and $11,000.
The cost of your restaurant insurance policy depends on factors such as:
- Your gross annual income
- The type of restaurant you own (full-service, carryout, etc.)
- Your location
- Your payroll
- Your claims history
- Whether you rent or own your location
- Whether you serve alcohol
Why FLIP for the Best Restaurant Business Insurance
Restaurant Liability Insurance Coverage Details
Listed below are the types of coverage a restaurant insurance policy can include.
Business Interruption
This can cover your lost income and operating expenses if you need to close your restaurant temporarily due to a covered incident, like a fire.
Commercial Property
Covers your building (if you own it) and its contents, such as your kitchen equipment, furniture, inventory, etc.
Cyber Liability
This can cover financial losses due to data breaches, cyber attacks, and system failures. Restaurants that accept credit or debit card payments, process online orders, or store customer information electronically are vulnerable to cyber liability claims.
Damage to Premises Rented
Protect your business from paying for damages you might cause to a rented space such as a commercial kitchen or rented building. For instance, if your stove causes grease stains you could be held liable to pay for those damages.
Employment Practices Liability Insurance (EPLI)
This insurance is designed to cover costs related to your employees’ claims of harassment, wrongful termination, or discrimination.
Equipment Breakdown
If your kitchen equipment fails due to a mechanical breakdown, electrical issues, or operator error, this insurance can cover the cost of repairing or replacing it.
General Liability
This coverage helps protect your business from the cost of the most common claims a restaurant might experience: third-party bodily injury, property damage, and personal injury.
Liquor Liability
If your restaurant serves or furnishes alcohol then you are exposed to alcohol-related risks and claims. If you hold a liquor license, this may be required by the state you operate in. Liquor liability insurance can help protect you from the cost of liquor-related claims.
Product Liability
A common risk in the food business is food poisoning. If a customer were to get sick from the food you served them, product liability insurance could help protect you from the expensive medical fees and bills.
Tools & Equipment
Protect your business equipment through tools and equipment insurance. If your cooking gear is damaged or stolen, it could be repaired or replaced with this insurance, saving you from an expensive out-of-pocket price tag.
Workers Compensation
Most states require this coverage if you have employees. This insurance can provide your staff with medical, wage replacement, and other benefits if they are injured while performing their duties.
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FAQs About Restaurant Insurance
Why Do I Need Restaurant Insurance?
Restaurants face many liability risks, from trip-and-fall accidents and property damage to a customer getting food poisoning. Any of these incidents could cost tens of thousands of dollars.
While there are steps you can take to reduce your restaurant’s risk, there is still a chance something might go wrong. Insurance for restaurants can cover these costs so you don’t have to.
Does Restaurant Insurance Cover Liquor Sales?
Restaurant liability insurance does not automatically cover liquor-related claims.
If you sell or serve alcohol at your restaurant, you can bundle FLIP’s liquor liability policy with your restaurant policy to get coverage for alcohol-related incidents. Liquor liability insurance may also be required by your state.
What Are the Risks of Running a Restaurant?
Restaurants face a wide range of risks, such as:
- A customer or bystander trips over your equipment and injures themselves
- Someone damages or steals your business equipment
- A customer gets a foodborne illness from something you served them
- A fire destroys your business equipment or damages your rented/owned property
What Does Business Insurance for Restaurants Cover?
Restaurant insurance can cover the following expenses:
- Attorney fees
- Judgments
- Medical bills
- Property repairs or replacements
- Settlements
Why Is Small Business Restaurant Business Insurance So Important?
A single claim could cost you tens of thousands of dollars and potentially devastate your business. With restaurant insurance, you create a financial safety net for your restaurant that allows you to keep things running even after something goes wrong.
Can I Get Restaurant Insurance Online?
Yes! You can get insurance for your restaurant online from FLIP. Start your online application and cover your business today!