How Much does restaurant insurance cost

How Much does restaurant insurance cost?

Does restaurant insurance cost a lot? If so, how much does it cost? Restaurant insurance cost $4200 annually. However, this number varies from state to state. There is some mandatory insurance coverage. without these can not open a restaurant. To know more read the below article.

Restaurant insurance cost

There is so much risk in the restaurant industry. Property damage and worker injuries are widespread in this business. Cut from the knives, burns, wounds, and all are included in the injuries. These injuries are very common. Hence the restaurant owners need to have liability coverage for both the property and the workers.

Business owner policy bop is very complicated. Some small business owners do not take insurance policies for their business because they think these policies are expensive. And all these policies are useless.  But actually, they help to protect your business from any kind of damage. Here is the complete information about how much restaurant insurance costs.

Mandatory coverage to start a restaurant

There are different types of insurance required to start a  restaurant business. If you will not have these then you will not get the business license to run the business. Although most of the coverages can be bought in a package. So, do not have to buy a policy for every coverage.

1) General liability insurance-

These cover the third-party damage at the restaurant. The workers are not included in this. If any customer faces any injury at your restaurant then this insurance coverage will pay for the medical bills for that customer.

2) Worker’s compensation insurance-

This insurance provides coverage for the injury that happens to your staff. This covers the medical bills and all medical costs and if any mishap happens in the restaurant then it will also pay for the worker’s funeral. Every state has this coverage in the mandatory term list.

3) Commercial Insurance

This insurance is for the coverage of the property. If your restaurant property needs any repairing and replacement then this insurance will help you. This insurance is also mandatory in every state.

4) Commercial auto insurance

If your restaurant or your business has a vehicle that helps you deliver the items and all. Then you have to take this insurance. Because for any damage to the vehicle the insurance policy will cover it. Also, there are chances that the vehicle may cause an accident. In that case, the insurance policy will be responsible for paying all the damage.

5) Liquor liability insurance-

If your business includes alcohol serving. Then consider this insurance to add to your policy. This insurance is a must among all the mandatory coverage. Along with a restaurant license, you will also need another license to serve the alcohol.

So, If you want to open your restaurant then you should have this insurance coverage. Only then you will get the license to open the restaurant. You can contact an insurance agent to get all this insurance coverage. He will suggest some policy that covers most of this coverage.

How much does restaurant insurance cost?

This estimated value adds all the possible and mandatory insurance coverage of the restaurant insurance. Even if you’re opening a small food truck this coverage will remain the same. Hence, the insurance coverage for both big businesses and small businesses remains the same. The average annual cost for the insurance of a restaurant is estimated to be about $4200. However, the amount may vary from one state to another. Because the criteria for every state are different. And in some states, you require more insurance policies while in some you will require fewer insurance policies.

Additional coverage for the restaurant

There is some additional insurance policy to consider for your business. All these are completely optional and you can neglect them if you want. But if you have these, there will be more security for your business.

1) Flood Insurance-

If you are living in an area where floods and all-natural disasters are very common then consider having this insurance. All property damage due to the flood will be covered under that insurance policy. Because general business insurance or homeowners insurance does not cover natural disaster damage.

2) Umbrella insurance-

If you want to increase the limit for your insurance policy then consider umbrella insurance. Because this umbrella insurance will extend your insurance limit to $3 million. Hence, it is very beneficial for all business owners. Because on average business insurance covers only $2 million in damage. With the help of this, you can increase the limit to $5 million.

If you’re in a hospitality business then you have to get almost all types of insurance policies. Because this sector is very big and covers almost everything. Including the third-party damage to the vehicle. Hence it becomes impossible for a business owner to pay for all these at once. That’s why all business owners play the safe side and get all the insurance policies. Because these policies benefit them and save a lot of money.

How to get perfect insurance for the restaurant business?

The only way to get perfect insurance for your business is to talk with your insurance agent. Make sure that the insurance agent has the experience and he is loyal to you. He will tell you every possibility, like the pros and cons of an insurance policy. And then you can finalize one insurance policy. However, you can also check a policy on a particular company’s website. If you know that this particular insurance company is loyal then go to their website and buy the insurance policy directly.


In conclusion, the restaurant insurance policy was a bit expensive. but it covers almost every business damage. So it is not harmful to get all the mandatory insurance coverage for your business. Because all days are not the same and you never know what will happen next in our business. So these insurances are like the security for your business from future damage. Hope you will find this helpful. Read till the very end.

See Also…

Does Homeowners Insurance Cover Painting?(Opens in a new browser tab)

How Many Jobs Are Available In Commercial Banks?(Opens in a new browser tab)

Leave a Comment

Your email address will not be published. Required fields are marked *

Error Express