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Do You Need Restaurant Insurance? Here's What Coverage You Might Need and How Much Small Business Insurance Cost

You never know what could happen when you’re dining out.

Suddenly, a server spills hot coffee on your lap, or that loudmouth in the next booth starts yelling about how he just got fired from his job.

What will your options be if this happens to you? What can you do today to protect yourself and mitigate damages like these before they happen?

Restaurant insurance has come into its own as a way for restaurant owners to manage risk and protect their business by covering certain types of losses and expenses.

When you’re looking for restaurant insurance, it can be tough to know where to start or what will work best for your needs. We have compiled this list of important questions that should help guide you in the right direction:

What is Restaurant Insurance?

What is Restaurant Insurance?

Restaurant insurance is a type of insurance that provides protection from liability claims for the food service industry. There is a range of policy options available, depending on a restaurant’s needs.

The food-beverage business has many different directions it can go from a fine dining restaurant to a small coffee shop.

As most restaurant owners are tenants they also need to meet specific restaurant insurance requirements of the landlord. As your insurance broker, we provide the needed certificate of insurance needed to comply with your landlord.

If you are looking for an insurance program that insures restaurants Integrity Now Insurance Brokers is here to help. We work with insurance companies that provide risk control services designed to protect business operations.

These loss control services provide information to your management team to keep your employees safe.

What are the Risks of Running a Restaurant for Business Owners?

Restaurants have a lot of different risks they face from serving bad food, fires, backing up sewer drains, and an employee getting injured. Here are a few risks of running a restaurant.

  1. Health and safety risks: There are a number of health and safety risks associated with running a restaurant, including food poisoning, slips, falls, and fires.
  2. Financial risks: Restaurants can be expensive to run, and there is always the risk that you will not make enough money to cover your costs.
  3. Reputational risks: If your restaurant gets a bad Yelp review or negative publicity, it could damage your reputation and hurt your business.


While insurance can’t protect you from everything using an insurance broker to compare different package insurance partners can help keep your insurance cost down.

liability insurance for a restaurant

What Types of Restaurant Business Insurance Coverage do Restaurants Need?

Restaurant Property Insurance Coverage

Restaurant commercial property insurance policies offer protection against business property damage and the building in the event of a fire. You spent a lot buying everything needed to run your restaurant, make sure you obtain the needed insurance coverage to help pay for damage to your ovens, refrigerators, tables, and chairs.

Restaurant Insurance Coverage for Business Interruption

Small business owners need business interruption insurance. It is a type of insurance that can help cover the lost income and expenses that a business incurs when it has to shut down or suspend operations due to an unforeseen covered event.

This type of coverage can be vital for restaurants, as they are often forced to close due to events beyond their control, such as fires, floods, or power outages.

Business interruption insurance can help cover the lost revenue and extra expenses that a restaurant incurs during these shutdowns so that the business can quickly reopen and get back on track.

Restaurant Liability Insurance Coverage

A restaurant liability insurance policy protects your food and beverage business from liability claims up to the coverage limits. Your general liability policy protects your restaurant and the property owner in the event of a loss.

Restaurant Insurance Coverage for Employees

Restaurant insurance can help protect business owners from bodily injury, defense costs, and loss of business property. Workers’ compensation insurance not only protects your employees from injury but also the owner from liability claims that could result after the employee becomes injured.

Business interruption coverage

Business interruption insurance is a type of insurance that can help cover lost wages and income if a business has to close down for an extended period of time. This coverage is available in a variety of forms, including business income and loss of income coverage. Extra expense coverage can also help businesses continue operating while their main location is closed down. This type of coverage can be added to a business owner’s policy (BOP) if the need arises to rent out equipment and secure a temporary location to continue working.

Employee dishonesty coverage

Employee dishonesty coverage is a type of insurance that helps businesses protect themselves from losses caused by employees who steal money or property. This coverage may be optional coverage, but it can help businesses recover from significant losses.

Food contamination and spoilage coverage

Food contamination insurance is a type of coverage that can help protect restaurants from the financial losses that can occur if their food is contaminated. This type of insurance can vary based on the size of the restaurant and the type of food served, but the most typical cost is $1,800 annually.

Food contamination can occur for a variety of reasons, including improper food handling, storage, or preparation. If contaminated food is served to customers, it could lead to them becoming ill. This could result in the restaurant facing legal action and/or having to pay for medical expenses. In some cases, it could even lead to the restaurant being forced to close down.

Having food contamination insurance in place can help cover the costs associated with such an event, including legal fees, medical expenses, and lost income. This type of coverage is particularly important for restaurants that serve high-risk foods such as raw meat or fish.

First and Third-Party Employment Practice Liability Insurance

First and third-party employment practice liability insurance protects employers from lawsuits alleging wrongful termination, discrimination, sexual harassment, and other employment-related claims. This type of insurance can help cover the costs of legal defense, settlements, and judgments.

Business Auto Insurance For Food Deliveries

If you use your personal vehicle for business purposes, you should have commercial auto insurance. This will cover any costs related to a car accident that occurs while you’re using your vehicle for business. Without this type of insurance, you would be personally responsible for any damages or injuries sustained in an accident.

Liquor Liability Insurance for Restaurants

Liquor liability insurance is a type of insurance that covers claims of intoxication against a restaurant. This coverage is important for restaurants because it can protect them from costly lawsuits.

Employment Practices Liability Insurance for Restaurants: What is employment practices liability insurance and why it is important for restaurants

What is employment practices liability insurance and why it is important for restaurants:

Employment practices liability insurance is a type of insurance that covers claims of discrimination, harassment, and other workplace torts. This coverage is important for restaurants because it can protect them from costly lawsuits.

Cyber Liability Insurance

Cyber liability insurance is a policy that helps protect businesses from the financial losses that can occur due to a data breach or other cyberattack. This type of insurance can help cover the costs of things like customer notification, credit monitoring, and legal expenses.

It can also help replace lost income if your business has to shut down for a period of time after a cyberattack.

As you can see there are a number of insurance products that help protect your restaurant, your staff, and your customers. It is critical to work with an insurance agency that has access to a number of insurance companies so they can procure an affordable restaurant insurance policy that provides the coverage you need for your food business.

fine dining restaurant insurance

How much does Insurance Cost for Restaurants?

The cost of restaurant insurance depends on the type of coverage

There are many types of restaurant insurance, each with its own price tag. The most common type of restaurant insurance is property insurance, which covers the building, business equipment, and inventory in case of fire, theft, or other damage.

Other types of restaurant insurance include liability coverage, which protects against lawsuits stemming from accidents or injuries that occur on the premises; product liability coverage, which covers claims arising from food poisoning or other contamination; and workers’ compensation insurance, which covers employees who are injured on the job.

The cost of these policies varies depending on the amount of coverage you purchase, the total annual payroll, and the risks associated with your particular business.

The cost of restaurant insurance also depends on the size of the restaurant

The cost of insurance for a restaurant can depend on a variety of factors, such as the type of restaurant you have and the number of employees you have. The cost of general liability insurance for restaurants can range from $1,500 to $60,000 plus annually. The size of the restaurant is one important factor that affects how much the insurance will cost.

The cost of restaurant insurance may also be affected by the location of the restaurant

The cost of restaurant insurance can be affected by the location of the restaurant. If the restaurant is located in an area with a higher crime rate, the insurance may cost more. If the restaurant is located in an area with a higher risk of natural disasters, such as floods or earthquakes, the insurance may also cost more.

The same restaurant located in Southern California can cost half as much as the restaurant located on the coast of Texas.

Other factors that can affect the cost of restaurant insurance include the type of cuisine served and the number of years in business

Here are a few examples of what can affect the cost of insurance.

  • The type of cuisine served: Fine dining establishments will typically pay more for insurance than fast food restaurants. This is because there is a higher risk of liability claims associated with serving alcohol and expensive dishes.
  • The number of years in business: Newer restaurants will usually pay more for insurance than those that have been established for longer periods of time. This is because newer businesses are generally considered to be riskier.
  • The location of the restaurant: Restaurants located in high-crime areas susceptible to vandalism or those that are situated near other businesses that may pose a risk (such as bars or nightclubs) will typically pay more for insurance than those located in safer areas.

Why does the Restaurants Industry need Liability Insurance?

Liability insurance is a type of insurance that helps protect businesses from potential lawsuits. If a business is found to be at fault for something, like an injury that occurs on their premises, they may be required to pay for damages out of pocket.

This can be a very costly endeavor, and liability insurance can help mitigate or eliminate the cost of claims.

As customers are not only visiting the establishment they are also consuming food and drinks the need to purchase coverage that is broad is more important than ever.

Does Restaurant Insurance Cover Liquor Sales?

Liquor sales are any sales of alcoholic beverages, including beer, wine, and spirits. In most states, restaurants are required to have liquor liability insurance if they sell or serve alcohol.

Typically insurance companies will want to know what percentage of your overall annual sales will be contributed toward liquor.

Restaurants that sell alcohol need liquor liability insurance coverage in the event that a customer becomes intoxicated and causes property damage or injures someone.

Most policies will cover damages caused by the intoxicated person, but there may be some exclusions depending on the policy.

For example, some policies may not cover damages caused by an employee who was serving alcohol to an intoxicated person. It’s important to read your policy carefully to understand what is and isn’t covered.

This is where having an insurance expert on your side helps ensure your financial protection in the event of a loss. Running your business is hard enough, let us keep your business protected with proper coverage in place.

Integrity Now Insurance Brokers has the restaurant insurance you need.

Insurance Agent / Broker Long Beach California

Why Restaurants Need to Use Integrity Now Insurance Brokers

As a restaurant owner, you are responsible for the safety of your customers and employees. 

If someone is injured on your property or as a result of your food, you could be held liable. Restaurant insurance can protect you from these types of liability claims.

There are many different types of coverage available, so you can tailor a policy to meet the specific needs of your restaurant.

Getting a quote from Integrity Now Insurance Brokers is a good way to learn more about the benefits of restaurant insurance and how it can help protect your business.

Coverage is provided by A-Rated insurance companies and their coverage can help protect your business from the costs of an unexpected loss.

Reach out to one of our insurance brokers to get the process started for your customized liability insurance quote.

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