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Restaurant Insurance
Customized insurance protection for restaurants
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Restaurant insurance coverage tailored to your business needs
Running a restaurant is a labor of love. You bring people together in a space filled with good conversation and delicious food. Behind the scenes, you manage a bustling kitchen and fast-moving staff to keep hungry patrons happy. That's why you need insurance protection that covers both sides of the house.
What is restaurant business insurance?
Restaurant insurance is a collection of business insurance coverages that address the unique needs of restaurants. It provides solutions to common risks in the food service industry and can protect you and your employees against lawsuits, injuries, property damage, inventory loss, and more.
Get the support you need from Progressive Commercial. Our team of experts can connect you with dependable coverage so you can concentrate on your menu and customers. Give us a call or start a restaurant insurance quote online.
Why is insurance for restaurants important?
Restaurants are fast-paced, lively environments, filled with constant foot traffic, hot surfaces, and sharp tools. Kitchen floors can get slippery, food can go bad, and workers can get hurt. Restaurant insurance gives you peace of mind and financial security as you grow your business.
You may also need restaurant insurance to operate or work with suppliers. Many contracts, such as leases for commercial kitchens and restaurant spaces, require proof of insurance. Progressive Commercial makes it easy for policyholders to get a certificate of insurance (COI) that summarizes their coverage details.
Who needs restaurant insurance?
Most businesses that cook and serve food should have adequate restaurant insurance, including:
- Bars and taverns
- Cafés
- Coffee shops
- Diners
- Delis
- Ghost kitchens
- Fast food franchises
- Lounges
- Pizzerias
- Sandwich shops
Restaurant business insurance is a helping hand for hospitality companies of all sizes. Whether you're an LLC with multiple locations, a sole proprietor with a longstanding restaurant space, a hospitality startup, or something else, Progressive Commercial can connect you with a policy that supports your development.
What insurance do I need for a restaurant?
Every restaurant should consider carrying insurance that protects against incidents like customer or employee injuries, vehicle accidents, and losses from food spoilage or inventory damage. Beyond that, you might have a unique situation that requires extra coverage. A customized policy can address your specific needs.
Types of restaurant insurance
We offer flexible insurance options that cover different types of risks that restaurants encounter. Some important restaurant insurance coverages include:
General liability (GL)
General liability insurance protects you against lawsuits and other third-party claims resulting from accidents or mishaps, like a customer slip and fall. Learn about the cost of general liability insurance for restaurants.
Example: A customer trips on a floor mat at your restaurant's entrance and sues you. Your GL policy would cover the cost of medical treatment and legal claims.
Business owners policy (BOP)
A business owners policy combines liability coverage with commercial property insurance, which protects your building and other business property like point-of-sale systems, kitchen equipment, and more. You can also add coverage for equipment breakdown, spoiled inventory, and more.
Example: High winds damage your outdoor dining area, causing you to close it for repairs. With a BOP, you're covered for furniture, signage, and other property that needs to be replaced.
Commercial auto
A commercial auto policy protects vehicles that you use for deliveries or other work purposes. Most states require you to carry liability insurance for injuries or damages to others if you cause an accident. You can also add more commercial auto coverages to protect your vehicle and drivers.
Example: Your restaurant's van hits another vehicle while delivering food to a catered event. Commercial auto insurance covers the other driver's injuries and repairs to their car, and it can also pay to repair your vehicle if you have physical damage protection.
Workers' compensation
Workers' comp pays for medical costs, lost wages, and other expenses if an employee becomes injured or ill because of work. The cost of workers' comp is based on the number of employees you have and their specific jobs.
Example: One of your servers carrying a tray of drinks near the bar slips and fractures their wrist. Workers' comp would pay for treatment, rehab, and lost income while they recover.
Food spoilage and contamination
Food spoilage coverage can support your restaurant when food goes bad due to a covered event, like contamination, equipment failure, or a power outage. It can help your business get back on track by covering the cost to replace lost inventory. You can add it to your BOP.
Example: A storm knocks out your restaurant's power overnight. Your walk-in fridge stops working, which ruins your fresh ingredients for the week. Spoilage coverage could help pay to restock what you lost.
Liquor liability
Most states have liquor laws that can hold businesses liable if they serve intoxicated customers who then cause damage elsewhere. Liquor liability guards against the risks of serving alcohol, such as lawsuits related to customer DUIs.
Example: Your bartender serves another round to an inebriated guest, who then gets into an accident on the way home. The other driver sues you for overserving alcohol, holding you partly responsible. Liquor liability coverage could help with your legal defense and any settlements.
Cyber
Businesses that store sensitive information, such as customer credit card data, should consider cyber insurance. With electronic payments and delivery services becoming the norm across the restaurant industry, this coverage is important.
Example: Your website and online ordering system get disabled by malware during peak hours. Cyber coverage can pay to restore your software and cover the cost of business interruption.
Restaurant insurance or catering insurance?
Restaurants and caterers need similar insurance, but there are some differences. Caterers often need coverage for equipment they use at other locations, while most restaurants don't usually need protection for portable property. If your restaurant also caters, you should consider catering insurance to see what fits your business.
How much does restaurant insurance cost?
Restaurant insurance costs vary depending on your business's risks. For example, a small sandwich shop with limited cooking equipment can expect its insurance cost to differ from a large tavern with a bar or a full-sized industrial kitchen.
Common factors that influence your rate include:
- Cooking equipment
- Building and location
- Number of employees
- Coverage limits
- Claims history
- Business vehicles
Learn more about the cost of business insurance.
What are some of the common risks a restaurant faces?
Commercial kitchens need protection from fires, water damage, and employee accidents like cuts and burns. Other risks include spoiled food, foodborne illness, and customer injuries — such as slip-and-fall accidents, allergic reactions, or burns from hot dishes.
Why choose restaurant insurance through Progressive Commercial
Progressive Commercial has been protecting small businesses for over 50 years with excellent coverage, competitive rates, and exceptional customer service. Our flexible, tailored approach to restaurant insurance makes it easy to get coverage that meets your restaurant's unique needs.
Explore what you need for a restaurant insurance quote, and then start a quote online or get in touch with our insurance experts.
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