Restaurant Insurance

Finding the Best Restaurant Insurance for You

(For when things get a little too hot to handle.)

June 14, 2018
restaurant owner reviewing insurance options

Cooking can be a hobby, a passion — or for those reading this, a business. It’s one thing to cook in your own kitchen for a few friends. But when you’re a restaurant owner taking on a dinner rush, the chaos can cause frantic decision-making. That’s when things can get dicey.

It doesn’t matter whether you run a tiny juice bar or a burger chain, you need a policy that will cover every risk on the menu. Our independent insurance agents will search high and low to find the right coverage to keep your business up and running.

What Is Restaurant Insurance?

In short, restaurant insurance is a combo platter of coverage that protects your customers, employees, property, and inventory. Every restaurant will have a unique assortment of risks, and your insurance can be tailored to protect your own business accordingly. 

Why Do I Need Restaurant Insurance?

Restaurant disasters may not be on the menu, but bad things are bound to happen. Especially when your kitchen is facing a rush of orders. Here’s a look at just some of the things that can go wrong:

  • You could lose your stuff: Damage or loss of your property, equipment, and inventory.
  • You could be sued: A drunk-driving accident caused by overserving a customer.
  • You could make a mistake: Food poisoning caused by improper handling of ingredients.


What Does Restaurant Insurance Cover?

Restaurant insurance is always a blend of different types of coverage. Here’s a list of flavors you’ll likely be sampling:

  • Property: This covers your business’s physical assets, from buildings to furnishings. It usually includes coverage for fire, natural disasters and theft.
  • Spoilage: This covers any inventory that spoils in a power outage or similar mishap.
  • General liability: This covers costs if someone is hurt in your restaurant, including food poisoning. (Check with your independent insurance agent to ensure that your policy doesn’t exclude communicable disease from coverage.)
  • Liquor liability: If you sell alcohol, this covers costs related to someone becoming intoxicated at your restaurant and hurting themselves or someone else.
  • Workers compensation: This covers your employees’ medical treatment and lost wages if they get injured on the job.
  • Garagekeepers: If you have a valet service, this covers damage to customers’ cars that may result.
  • Boiler and machinery (equipment breakdown): This covers repair and replacement costs for your equipment under a wide variety of circumstances, including power surges and mechanical breakdowns.

What Kind of Restaurant Insurance Do I Need?

If you’re just starting out, a premade restaurant insurance plan might be the ideal choice for coverage. These policies can be convenient, cost-effective, and should offer the protection you need for the time being.

Once you’re more established, you’re better off customizing your insurance, especially if you have expensive furnishings, appliances, or a fleet of catering vehicles. Premade plans might not have the proper protection to fully cover all your goodies.

To find your insurance sweet spot and make the search process easier, you’ll need to know your business classification. Find that info here >>>

How Much Does Restaurant Insurance Cost?

It depends on your restaurant’s sales and niche. In short, the more money you make, the more insurance will cost. Extra policies like liquor liability and garagekeepers insurance (if you have a valet service) will also add cost.

Though, on average:

  • Small restaurants and food stands: A few thousand dollars per year. 
  • Large, high-end restaurants: Potentially over ten thousand dollars per year. 
  • Chain restaurants: Premiums can vary, but will cost the most due to sheer numbers.

Comparing Restaurant Insurance Quotes

Our agents will review your needs and help you evaluate the restaurant Insurance coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection in place. They'll hook you up — in a comprehensive and affordable way.


What's So Great About Independent Insurance Agents?

Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.

They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.

TrustedChoice.com Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?