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How to Choose the Right Restaurant Insurance

By John Mason

How to Choose the Right Restaurant Insurance
(Photo by Getty Images)

Owning a restaurant can be an exciting venture for food lovers. Unfortunately, it still requires mundane activities, like choosing restaurant insurance.

Although it might not be the most glamorous part of owning a restaurant, it is pivotal to success. Having the right insurance coverage can help a restaurant owner flourish in the food industry.

Restaurant insurance is designed to safeguard the business from various dilemmas. There are different types of restaurant insurance policies, and you should research to ensure that you’re choosing the right policies. First, you need to consider the type of restaurant you’re starting, its location, and other components before you pick a policy that suits your business. In this post, we’ll explain types of restaurant insurance, and offer other helpful tips. Let’s get started!

Common Restaurant Insurances

To choose the right insurance, you should understand the various types of insurance exist. Here are some of the most common restaurant insurances:

Property Insurance:

This insurance covers expenses due to accidents, like a fire in your restaurant or another incident that causes major damage. In addition, some insurances offer coverage for natural disasters, but not all of them. If you live in an area that is prone to hurricanes, earthquakes, or other natural disasters, you should research insurances that provide coverage for these events. Ultimately, if you have a mortgage on your property, you should always have a property insurance policy.

Liquor Liability:

Most restaurants who have liquor licenses are required to have a liquor liability policy as part of their insurance. This is not a necessity in some states, but most of them have made it an important part of insurance plans. Having a liquor liability policy will give you peace of mind as a restaurant owner. If a customer drinks too much and hurts someone, this liability will protect the future of your business.

General Liability:

If a minor accident occurs at your restaurant (for instance, a customer slips and falls), general liability insurance can protect your business. Unfortunately, people can try to blame you for minor accidents, even if your restaurant isn’t at fault. That’s why it’s imperative that you invest in a general liability policy.

Life Insurance:

If you have mortgage property for your restaurant, then having life insurance could be important in the future. It can be prudent to have a life insurance policy since it could help save your business, and ensure that your family is taken care of.

Other Helpful Restaurant Insurances

The restaurant insurances mentioned in this section will cost you a little more money, but it could be beneficial to have additional protection.

Loss of Business Insurance:

Losing sales can happen, even to successful restaurants. Still, if you need extra help, having a loss of business insurance policy could be valuable.

Food Contamination Insurance:

Food can get contaminated due to several reasons. For instance, a power outage could cause refrigerators to operate without power, causing food to spoil. Thankfully, if you have Food Contamination Insurance, you’ll be able to get the food replaced, as long as the contamination wasn’t your fault.

Specific Peril Insurance:

This type of insurance covers the damage caused by natural disasters. As we previously mentioned, general liability insurance could cover damage from a natural disaster, but some don’t. Due to this, you might need Specific Peril Insurance.

Which Restaurant Insurance is Right for Your Business?

Some business owners get overwhelmed by all the restaurant insurance options available, but that’s not necessary. As mentioned above, understand your business needs so that you can choose the right insurance.

By law, every business owner is obligated to protect its business through insurance. Then, you can add extra insurance plans based on your needs. The restaurant insurance costs vary from business to business, and the premiums will depend on factors like the size of your restaurant, the number of employees you have, the food you’re serving, and whether you sell liquor. In addition, you can usually find a diverse price range for restaurant insurances, so you can choose a plan that fits your budget.


Ultimately, the right insurance will cover your restaurant business in different sectors. From small accidents to major issues, you need to have protection so that your business can remain operational. With the right insurance, you can run your restaurant for many years to come!

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.


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