RESTAURANT INSURANCE COSTS
Sample Quotes

The restaurant business is notoriously challenging. Your budgets are tight, and you never know how many tables you'll serve on a given day. Whether you're a QSR or a fine-dining establishment, you need to plan your purchases carefully.

To help you, we've provided these cost estimates to help you budget the cost of restaurant insurance. Keep in mind that these restaurant insurance quotes are only estimates. Your policies might cost more or less depending on your business's size, location, and other factors.

HOW MUCH IS
General Liability Insurance?

General Liability Insurance

Whether you run a fast-food joint or a full-service restaurant, General Liability Insurance provides important lawsuit protection. If a customer or delivery person is injured on your property, GL Insurance can cover the resulting lawsuit. Many policies also include coverage for immediate medical costs, such as the expense of an ambulance ride. General Liability also covers lawsuits over copyright infringement, damaged reputations, third-party property damage, and foodborne illnesses.

General Liability Insurance a small restaurant can cost between $529 and $6,097 in annual premiums.

Median policy premium:

$529 - $6,097

Median policy limit:

$2 million

Median policy deductible:

None

To see how the cost of General Liability Insurance for restaurants compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Property Insurance?

Property Insurance

Property Insurance covers kitchen equipment, furniture, buildings, and other property the restaurant owns. In the case of fire, theft, windstorms, or other covered events, your insurer reimburses you for the cost to repair and replace your property.

Property Insurance for small restaurants generally costs $1,011 to $2,233 in annual premiums.

Median policy premium:

$1,011 – $2,233

Median policy limit:

Coverage varies depending on value of insured property

Median policy deductible:

$1,000

HOW MUCH IS
a Business Owner's Policy?

Business Owner's Policy

A Business Owner's Policy (or BOP) is the combo meal of insurance policies – it bundles General Liability Insurance and Property Insurance, offering small restaurants a discount on both. (See above for policy descriptions.)

Many policies also include Business Interruption Insurance, which reimburses you for lost income if your restaurant has to close down while it repairs or rebuilds after a covered property loss event. Business Interruption also can also cover supply chain interruptions. If a storm downstate means a steak house can't get fresh beef, it can cover the income it loses during the beef shortage. Because restaurants rely on fresh food, make sure to ask your agent if your BOP includes supply chain coverage.

The typical restaurant Business Owner's Policy costs $1,142 to $10,574 in annual premiums.

Median policy premium:

$1,142 - $10,574

Median policy limit:

$2 million

Median policy deductible:

$1,000

Not all restaurants qualify for a BOP. Be sure to ask an insureon agent if you are eligible for this policy.

HOW MUCH IS
Workers' Compensation Insurance?

Workers' Compensation Insurance

To protect their employees from the expense of work accidents and illnesses, restaurants often have to purchase Workers' Compensation Insurance. This policy is almost always required by law and covers medical expense and lost wages for employees injured on the job. Most policies also come with Employer's Liability Insurance, which protects you from the cost of a Workers' Comp lawsuit by paying legal bills and damages you owe injured employees.

Workers' Comp costs vary drastically depending on the type of restaurant you run. Premiums range from $636 to $9,730, with fine dining restaurants generally paying larger premiums.

Median policy premium:

$636 – $9,730

Median policy limit:

$500,000

Median policy deductible:

None

To see how the cost of Workers' Compensation Insurance for restaurants compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Employment Practices Liability Insurance?

Employment Practices Liability Insurance

Employment Practices Liability Insurance pays for lawsuits when a restaurant owner is sued for workplace discrimination, harassment, or improper termination. Given the high-stress work environment of most full-service restaurants, it's easy to see how arguments, firings, and other employment disputes could boil over. If your business is slapped with an employment lawsuit, EPLI can cover your settlement costs, lawyers' fees, and legal expenses.

Employment Practices Liability Insurance typically costs restaurants $1,050 to $8,143 in premiums each year.

Median policy premium:

$1,050 - $8,143

Ask your insurance agent about policy limit and deductible options, which will vary significantly depending on the specifics of your business.

HOW MUCH IS
Commercial Auto Insurance?

Commercial Auto Insurance

If your restaurant owns vehicles it uses for deliveries, event catering, or other work purposes, Commercial Auto Insurance is a crucial policy for your business. Commercial Auto Insurance protects restaurants from the medical, legal, and repair costs that can result from a car accident.

Annual premium prices for Commercial Auto Insurance generally range from $1,215 to $2,434.

Median policy premium:

$1,215 - $2,434

Median policy limit:

Limits vary depending on vehicle and coverage.

Median policy deductible:

Deductibles vary depending on coverage needs.

Some businesses require their delivery drivers to use their own vehicles. In this case, you might need Hired and Non-Owned Auto Insurance, which covers lawsuits that occur when employees drive their own cars for work and get into accidents.

HOW MUCH IS
Inland Marine Insurance?

Inland Marine Insurance

A restaurant that frequently transports equipment and other materials can get Inland Marine Insurance, which covers property in transit. For restaurants that have to haul catering equipment to and from events, Inland Marine Insurance can protect their equipment in the event it is stolen or damaged in an accident.

Inland Marine Insurance for restaurants typically costs between $350 and $750 in annual premiums.

Median policy premium:

$350 – $750

Median policy limit:

Coverage varies depending on insured property.

Median policy deductible:

Coverage varies depending on insured property.

For a restaurant that displays artwork, Inland Marine Insurance can also cover your gallery.

HOW MUCH IS
Liquor Liability Insurance?

Liquor Liability Insurance

In order to apply for a liquor license, many restaurants need to have a Liquor Liability Insurance policy. Many states have laws that hold restaurants responsible if they serve alcohol to an intoxicated customer who goes on to commit a crime, injure someone, damage property, or cause other problems. Liquor Liability Insurance covers the cost of lawsuits related to these issues.

Liquor Liability Insurance policies for small restaurants cost between $386 and $2,780 annually.

Median policy premium:

$386 – $2,780

Median policy limit:

$1 million

Median policy deductible:

None

HOW MUCH IS
Umbrella Insurance?

Umbrella Insurance

Umbrella Insurance adds extra liability insurance to your business protection plan. If you reach the limits on certain liability policies – General Liability, Employer's Liability (part of Workers' Comp), or Auto Liability – your Umbrella Insurance allows you to draw on an additional $1 million in lawsuit coverage. Say a foodborne illness lawsuit ends up costing your restaurant $1.5 million, but your GL policy only covers $1 million. Umbrella Insurance covers the remaining $500,000.

Umbrella Insurance policies generally cost from $400 to $2,403 a year for a small restaurant.

Median policy premium:

$400 – $2,403

Median policy limit:

$1 million

Median policy deductible:

None

To see how the cost of Umbrella Insurance for restaurants compares with other industries, visit Insureon's Umbrella Insurance Cost Analysis New browser window icon..

How to Find Restaurant Insurance Quotes

How to Find Restaurant Insurance Quotes

When you work with insureon, you'll work with agents who specialize in insurance for restaurants, caterers, and other food service businesses. Our agents solicit insurance quotes from top-rated insurance companies and send you a variety of cost estimates based on your business and its real-life liabilities.

Submit an online insurance application for free quotes on restaurant insurance.

Grab-n-Go Information

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