Category Archives: Restaurant Insurance

11 What Kind of Insurance Do You Need For a Restaurant

What Kind of Insurance Do You Need For a Restaurant?

  • Restaurant owners should consider business property insurance, which can cover the physical building and everything inside.
  • Liability insurance provides coverage if your business is at fault for injuries others and their property.
  • Workers’ compensation insurance is required in nearly all states if you have employees.

Question I’m a chef and I’m in the process of opening my own restaurant. When I research restaurant insurance, it makes my brain hurt. Can you tell me what kind of insurance restaurant owners like me should consider?

Answer Here’s the shortest answer to your question (and hopefully it doesn’t hurt your brain). Here are some insurance options that you may want to consider as a restaurant owner:

  • Property insurance
  • Fire coverage
  • Personal property coverage
  • Business expense coverage
  • Workers’ compensation insurance
  • Specialty insurance coverage

But as you’ve discovered, it gets complicated from there. Restaurants – especially businesses serving alcohol, making deliveries or offering valet parking – have unique risks. The type of insurance coverage you may select can be different, based on things like whether you rent or own the building or space the restaurant is in.

Within those types of insurance, you can get coverage for injuries, accidents and other losses that can happen in a restaurant in two important categories: 1) buildings and equipment and 2) liability.

What about building and equipment coverage?

Whether you rent your building or own it, you’ll want property insurance that protects the full value of the restaurant. If you rent, you may also want to consider property coverage that includes:

  • fire damage to the property;
  • personal property, such as appliances, chairs, tables and dishware;
  • additional business expense coverage, in case you need to relocate while the building is being repaired after a covered loss.

Are there coverage options that I may not even be thinking about?

Whether you rent or own the building, you may also want specialty insurance coverage. This type of insurance is customized coverage for losses that are unique to your business or industry. For example, some clients who own restaurants add sign and glass coverage, because outdoor signs and building glass are expensive and an easy target for vandals. One customer owns a restaurant filled with valuable sports memorabilia — autographed photos, collectible jerseys, balls signed by winning teams. These items are difficult and expensive to replace. He has additional fine arts coverage, which provides coverage against loss for these items.

If you rent the restaurant space and have made improvements to the building that your landlord didn’t reimburse you for, such as upgrading the commercial ventilation system, you may want to consider coverage for those investments in case one of these upgrades or improvements is damaged in a fire or other accident.






11 How much does restaurant insurance cost

How much does restaurant insurance cost in Florida?

The cost of restaurant insurance depends on the policies you choose, the unique risks your restaurant faces, and the value of your business property. Cost estimates are sourced from policies purchased by L and C Insurance customers.

Business owner’s policy costs for restaurants

Restaurant owners typically pay about $175 per month for a business owner’s policy (BOP), or a median annual premium of $2,080. The median value eliminates high and low outliers, providing better representation of typical restaurant insurance costs than the average value.

A BOP bundles general liability insurance with property insurance, usually at a discounted rate. Pricing is determined by your restaurant’s location, operations, and value of business property and equipment.

This policy may include business interruption insurance, which covers income lost at your restaurant due to an unexpected closure.

Median cost per year: $2,030
Policy limit: $1 million per occurrence
Policy deductible: $1,000

Learn how to save money on your policy, which coverage limits to choose. Call L and C Insurance Providers at 888-913-6988

Workers’ compensation costs for restaurants

The median cost of workers’ compensation insurance is about $125 per month for a restaurant, or $1,480 annually. The cost of a policy varies significantly depending on the state and your business operations.

Workers’ compensation insurance is required in almost every state for businesses with employees. Even when it’s not required, it’s a smart purchase in the restaurant industry, where employees routinely cut, chop, and fry in hot oil.

This coverage helps pay medical costs and lost wages for employees who are injured on the job. Most policies include employer’s liability insurance, which protects restaurant owners against lawsuits related to workplace injuries.

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Liquor liability insurance costs for restaurants

The median cost of liquor liability insurance is about $45 per month for a restaurant, or $545 annually. This policy protects restaurants that serve alcohol from liability for the actions of intoxicated customers. In some jurisdictions, your restaurant might need liquor liability insurance in order to obtain a liquor license.

Median cost per year: $545
Generic policy limit: $1 million

General liability costs for restaurants

Restaurants pay a median premium of less than $70 per month for general liability insurance, or $805 annually. This policy protects restaurants against customer injuries and customer property damage, along with advertising injuries.

Insureon’s licensed agents typically recommend purchasing a business owner’s policy, which bundles general liability insurance with commercial property insurance at a discounted rate. It protects your own business property along with covering common business risks.

Median cost per year: $805
Policy limit: $1 million per occurrence
Policy deductible: None


11 How do I shop for Florida Restaurant Insurance


  • Start Early. To get the best rates on Florida restaurant insurance you will need to shop around. That’s where we come in. Having an agent that understands your business will make this much easier for you. L and C Insurance providers offers specialized programs for the Florida restaurant insurance industry.
  • Estimate your gross sales, your gross inventory (food costs), and the total dollar amount of your furnishings and equipment.
  • Insurance costs can be based on total annual sales revenue and/or total square footage of your restaurant, so be sure to have this information available for a quote.


  • Restaurant insurance can be diverse, so coverage will vary from one restaurant to another. The basic insurance coverage for a restaurant consists of general liability and property coverage.
  • General liability insurance will typically protects the restaurant in the event one or more patrons are injured on the premises. For example, slip and fall.
  • Property insurance would cover a building, and/or the contents inside the building, including all of the furniture, equipment, POS systems, computers, cooking equipment, coolers, etc.
  • Liquor liability is also recommended for restaurants that serve alcohol. The liquor liability insurance can protect a restaurant in the event a claim occurs that is alcohol related.
  • Food spoilage can also be purchase to insure your food inventory in the event of a power outage.
  • If you deliver food, you would also want to make sure you have insurance coverage for the vehicles that the restaurant uses for delivery.


  • Building Coverage. This covers the building or buildings on the premises. Special Form coverage is the broadest form of coverage. A lot of carriers only offer basic form coverage, which is limited. While you can purchase a “difference in conditions” policy to supplement some of the lacking coverage in a basic policy, the special form is still your best bet if it is available in your area.
  • Other Structures. This can cover signs or other structures not attached to your building.
  • Boiler and Machinery. Covers your mechanical equipment.
  • Liability. This will respond in the event someone is injured on your premises.
  • Medical payments. This pays in the event there is a minor injury on your premises.
  • Food Spoilage. If you lose electricity you lose your freezers and coolers. This could cost thousands of dollars if your food spoils.
  • Business Income. If your business is destroyed by fire or hurricane, business income will pay you for your lost revenues while your business is being rebuilt.


  • Flood. No Florida restaurant insurance policy covers flood. If you are in an area at risk of flood you should purchase a separate policy to cover this.
  • Typically property coverage only applies to buildings. Make sure signs and other structures on the premises are also covered.
  • Food spoilage is something you must request coverage for. It is typically not covered in a commercial liability policy.
  • Business income is optional. Most companies need this coverage to stay afloat in the event of a disaster.


  • The best way to save money on your Florida restaurant insurance in Florida is to shop around. Our experts have access to the top Florida insurance companies.
  • Age of building discount or surcharge. Most companies offer discounts based on the age of the buildings. Newer buildings receive discounts due to more stringent building codes that have been applied in recent years. Older buildings typically receive surcharges based on age. This is due in part to less stringent building codes used in years past.
  • Territory. Where the restaurant is located can make a substantial difference in premium. Some Florida counties have higher rates than others. Proximity to the coast will also be a factor.
  • Deductible. You may increase your deductible in order to reduce your premium, but you should carefully consider such factors as how much of a discount you will receive for a given deductible, and how much you can afford to pay for each claim.
  • Location. If the building is more than 1,000 feet from a fire hydrant and/or more than 5 miles from a fire department you will find yourself paying a much higher insurance rate.
  • Type of construction. Masonry buildings are less expensive to insure than frame buildings due to their fire ratings.
  • Carrier appetite. Certain companies experience better claims histories with certain buildings, locations, and age groups. Their rates reflect this by offering lower rates to those groups they have found the best experience with.