Restaurant Insurance

What is Restaurant Insurance?

Restaurant owners invest a great deal of both time and money in their eateries. Without adequate protection, all of this hard work could be lost in moments if something happened. Restaurant insurance helps protect restaurant owners’ investments from a number of potential perils. 

Restaurant insurance is a form of commercial insurance that’s designed to meet restaurants’ multiple and unique insurance needs. Most restaurant policies are package policies, combining several individual protections into a one policy.

What Coverages Are Restaurant Policies Able to Provide?

The individual protections that restaurant policies provide can usually be customized for a particular restaurant’s situation. Thus, not all policies contain the same coverages. Most policies, however, have a combination of restaurant liability insurance coverages and restaurant property insurance coverages.

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Restaurant Insurance

Restaurant liability insurance coverages generally offer protection against different types of liability claims that might be filed against a restaurant. The different types of restaurant liability insurance coverage that are normally available include:

  • General Liability Coverage, which is used by many businesses (both in and outside the restaurant industry) to protect against several common risks
  • Cyber Liability Coverage, which may offer protection against potential data breaches and online threats
  • Product Liability Coverage, which might cover claims arising from a food-borne illness that a restaurant’s dishes spread
  • Liquor Liability Coverage, which is frequently required if a restaurant serves alcohol
  • Hired and Non-owned Vehicle Coverage, which may be needed if a restaurant has employees deliver food using their own cars
  • Umbrella Liability Coverage, which might supplement one or more other restaurant liability insurance coverages

Restaurant property insurance coverages help safeguard the property that a restaurant owns, which can include buildings, equipment, supplies, and other property. The different restaurant property coverages that are typically available include:

  • Building Coverage, which might help protect a building that’s owned by a restaurant
  • Contents Coverage, which may cover adjustable shelving, non-fixed furniture, cooking utensils, and other moveable items that a restaurant has
  • Food Contamination Coverage, which might help protect the food and ingredients a restaurant has from contamination or spoilage
  • Equipment Breakdown Coverage, which may help cover emergency repairs if essential equipment goes down

Protect Your Business

Do Restaurants That Lease Space Need Building Coverage?

Restaurants that lease the space they’re in generally don’t have to carry building coverage. When commercial space is leased, it’s usually the responsibility of the leasing company that owns the building to procure coverage for the building. Restaurants will normally still need other property coverages to protect their equipment and inventory, though.

Do Restaurant Policies Include Workers Compensation and Health Insurance?

While restaurant policies can include many different coverages, most aren’t set up to provide workers compensation, health, or disability insurance. If these insurances are needed, they’re typically purchased as separate policies.

Restaurant Insurance

What Restaurants Need a Restaurant Policy?

Most restaurants ought to have a restaurant policy. Since these policies can frequently be adjusted to provide various levels of protection, there’s little reason not to get one. Additionally, restaurants that don’t have proper insurance could be financially devastated by a single incident.

What Factors Affect How Much a Restaurant Policy Costs?

Many different factors affect how much a restaurant policy costs. When underwriting policies, insurers often take into account:

  • The size of a restaurant’s commercial spaces
  • Whether a restaurant serves alcohol
  • How many people a restaurant serves
  • Whether a restaurant has filed insurance claims in recent years
  • What coverages and limits a policy includes

(These are just a few examples of factors that insurers may consider. There are many more.)

Make Sure You Have the Right Coverage

How Can Restaurants Get Quotes for Restaurant Insurance?

Restaurant owners can find out how much a restaurant insurance policy will cost their establishment by asking an independent insurance agent to request quotes for policies. An independent agent will be able to help determine what coverages a restaurant needs, and they can request quotes from different insurance companies for restaurant policies that have those coverages.

Meet Your Industry Specialist

Jeff Kroeger

Principal, Senior Vice President, and Head of Commercial Lines, Mr. Kroeger also manages the company's hospitality book of business and is that unit's primary producer. He is a graduate of Montclair State University and was named a 2015 Young Gun Insurance Business America.

Jeff has been providing exceptional insurance for restaurants, bars, nightclubs, and more for many years. He understands the unique challenges this industry faces and delivers the right coverage at an affordable price.

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