How much does food and beverage business insurance cost?

Food and beverage businesses pay a median premium of about $135 per month, or $1,610 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

A BOP protects against customer injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

Among food and beverage businesses that purchase a business owner’s policy with Insureon, 28% pay less than $1,000 per year and 31% pay between $1,000 and $2,000 per year.

The cost varies depending on how much property coverage your business requires. For example, a restaurant with a high-end kitchen will pay more for property insurance than a coffee shop with a small sandwich preparation area.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's business owner's policy cost analysis page.

To meet your state’s requirements and avoid penalties, food and beverage businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical costs and partial lost wages when an employee suffers a work-related injury or illness.

Even sole proprietors should consider buying workers' comp. If an injury happens at work, your health insurance provider could deny the claim, leaving you with expensive medical bills.

For food and beverage businesses, workers’ compensation insurance costs a median of about $115 per month, or $1,355 per year.

Among food and beverage businesses that purchase workers’ compensation insurance with Insureon, 23% pay less than $800 per year and 36% pay between $800 and $1,600 per year. The cost depends on the number of workers, their level of occupational risk, and other factors.

Learn how workers' comp premiums are calculated and more on Insureon's workers' compensation insurance cost analysis page.

The median cost of liquor liability insurance is $75 per month, or $925 annually, for food and beverage businesses.

Liquor liability insurance offers crucial coverage for small businesses that serve alcohol. It protects against customer injury or property damage caused by an individual who became intoxicated at your place of business.

Among food and beverage businesses that purchase liquor liability insurance (primarily restaurants, caterers, and bars), 30% pay less than $600 per year and 33% pay between $600 and $1,200 per year. Bars tend to pay more for liquor liability insurance (a median cost of $2,060) compared to restaurants ($545) and caterers ($775).

The cost varies depending on type of business and percentage of sales involving alcohol. Other factors include your location and your choice of policy limits.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's liquor liability insurance cost analysis page.

Food and beverage businesses pay a median premium of about $40 per month, or $500 per year, for general liability insurance. This policy provides protection for third-party bodily injuries, property damage, and advertising injury.

Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your kitchen equipment, and costs less than purchasing each policy separately.

Among food and beverage businesses that purchase general liability with Insureon, 36% pay less than $400 per year and 46% pay between $400 and $800 per year.

Businesses like bars and busy restaurants tend to pay more for general liability, as they face an increased risk of customer injury and property damage.

Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.

Most food and beverage businesses (97%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's general liability insurance cost analysis page.

In general, food and beverage businesses pay a median premium of about $165 per month, or $1,960 annually, for commercial auto insurance. Commercial auto insurance is a requirement for food and beverage businesses that own vehicles, such as catering vans and food trucks. Personal vehicles used for business purposes may also need coverage beyond your personal auto policy.

Among food and beverage businesses that purchase commercial auto with Insureon, 24% pay less than $1,000 per year and 27% pay between $1,000 and $2,000 per year.

The cost depends on the vehicle's value and how much your employees drive. For example, food trucks pay a median premium of $180 per month, or $2,130 annually. In contrast, the median premium for caterers is $30 per month, or $365 annually.

Learn how coverage limits and other factors affect the cost of this policy on Insureon's commercial auto insurance cost analysis page.