Question 1

What insurance does a restaurant need?

Accepted Answer

Restaurants typically need general liability, commercial property, workers' compensation, and liquor liability (if you serve alcohol). A Business Owner's Policy (BOP) bundles GL and property at a discount. You should also consider food contamination/spoilage coverage, employment practices liability, and cyber liability if you process credit cards.

Question 2

Do I need liquor liability insurance for my restaurant?

Accepted Answer

If your restaurant serves, sells, or distributes alcohol, you almost certainly need liquor liability insurance. Most states require it as a condition of your liquor license. Liquor liability covers claims arising from the actions of intoxicated patrons — such as drunk driving accidents, assaults, or property damage. Standard general liability policies typically exclude alcohol-related claims.

Question 3

How much does restaurant insurance cost?

Accepted Answer

A small restaurant might pay $3,000–$7,000/year for a BOP (general liability + property). Adding liquor liability typically costs $1,000–$5,000/year depending on alcohol revenue percentage. Workers' comp varies by state and payroll. A full coverage package for a mid-size restaurant with 15-20 employees usually runs $12,000–$25,000/year.

Restaurants Insurance

Frequently Asked Questions

What insurance does a restaurant need?

Do I need liquor liability insurance for my restaurant?

How much does restaurant insurance cost?