Restaurant Insurance
Protect your restaurant from expensive claims with commercial restaurant insurance from our trusted partner, Coterie!
Benefits of Restaurant Insurance
Claims Cost Protection
Restaurant insurance can protect your business from the cost of claims like attorney fees, medical costs, and more.
Protect Your Business Reputation
Insurance can help protect your business reputation when claims happen. You can advertise your business as licensed and insured, which may increase your clientele.
Peace of Mind
Running a business can be stressful. With restaurant insurance, you can experience peace of mind and less stress knowing you’re prepared and protected.
What Is Restaurant Insurance and Who Needs It?
Business insurance for restaurants is designed to protect your business from the expensive costs of claims through a series of insurance coverages. Your policy can include general liability insurance, product liability insurance, damage to premises rented insurance, and cyber liability insurance.
It’s important to note that these insurance coverages don’t prevent claims, but they can mitigate or even eliminate how much money they could cost your business.
If you have a brick-and-mortar store, Food Liability Insurance Program (FLIP) cannot provide a policy.
How Much Does Restaurant Insurance Cost?
As with any coverage, restaurant insurance has ranges depending on location, cuisine, alcohol service offered, and previous claims history. However, if you are budgeting for your business, here are some ranges and averages for common restaurant insurance coverage that might be beneficial.
- General Liability for Restaurants: Ranges from $805 to $6,000 annually. The average annual payment is around $1,440.
- Business Owner Policy (BOP) for Restaurants: Ranges from $1,400 to $6,300 annually. The average annual payment is around $684.
- Workers’ Compensation Insurance for Restaurants: Ranges from $600 to $10,000 annually. The average annual payment is around $1,480.
- Liquor Liability Insurance for Restaurants: Ranges from $400 to $3,000 annually. The average annual payment is around $659.
Source: Fit Small Business
What Kind Of Insurance Does A Restaurant Need?
A restaurant needs several types of insurance, including:
- Business interruption
- Commercial property
- Cyber liability
- Damage to premises rented
- Employment practices liability insurance (EPLI)
- Equipment breakdown
- General liability
- Liquor liability (if selling alcoholic beverages)
- Product liability
- Tools and Equipment (Inland Marine)
- Workers compensation
Let's Talk About Numbers for FLIP
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.
What Customers Say About FLIP
Here's what other people have to say about their experience from over 312+ available reviews.
Have Questions? We're On It.
Who Does Restaurant Insurance Cover?
Food business owners who need restaurant insurance include:
- Cafes/Coffee Shops
- Diners
- Delis
- Food Delivery Services
- Fast Food Restaurants
- Pizzerias
- Sandwich Shops
- Ghost Kitchens
- Any Brick-and-Mortar Restaurants
Why Do I Need Restaurant Insurance?
As businesses in the food industry, restaurants have a unique set of liability risks, from trip and fall accidents and business property damage to customers getting sick from the food you serve. Just one liability claim can cost tens of thousands of dollars. Without liability insurance, your business may be required to pay for claims out of pocket. Restaurant business insurance can mitigate or sometimes eliminate the cost your restaurant may be required to pay for claims.
Does Restaurant Insurance Cover Liquor Sales?
No. In order to protect your business from liquor-related claims, you must include a liquor liability insurance coverage to your restaurant insurance policy. If your restaurant serves, sells, or furnishes alcohol, you will need this important coverage to protect your business from the cost of alcohol-related accidents. It may also be required by the state you operate in.
What Are the Risks of Running a Restaurant?
As a restaurant owner you can experience a bevy of risks and claims such as the following:
- A customer or bystander trips over your equipment, causing bodily harm
- Someone damages or steals your business equipment
- A customer gets a foodborne illness from food you served them
- A fire or disaster destroys your business equipment or causes property damage
Without restaurant insurance coverage these claims could cost you thousands of dollars in medical fees, attorney fees, and more. With restaurant insurance, these costs can be mitigated or even eliminated.
What Does Insurance for Restaurant Businesses Cover?
Restaurant insurance coverage can cover injury claims, food poisoning claims, property damage claims, and more. Coverages can include general liability insurance, product liability insurance, and tools and equipment coverage.
Why Is Restaurant Business Insurance So Important?
One single claim could cost you tens of thousands of dollars and have the potential to devastate your business financially. When you have restaurant liability insurance you may protect yourself from the exorbitant cost that claims could cause.
