9 types of restaurant insurance you needed yesterday

9 Types of Restaurant Insurance You Needed Yesterday

Owning a restaurant is a dream you’ve held for years and now it’s coming true! You’ve thought about your menu, seating options, even your logo, but have you thought about restaurant insurance?

Between your inventory, customers, and the business itself, restaurants carry a large amount of risk. But your pizza parlor, bakery, or cafe is also your livelihood. Is that a risk you’re willing to take? Having the right restaurant insurance policy can prevent you from having to kiss your dream goodbye.

So let’s take a look at 9 essential types of restaurant insurance that will keep you in business for years to come.

Business Owner’s Policy (BOP)

neon open sign

A restaurant is, at its heart, a business. And restaurants need the same level of basic business coverage that all companies do. A Business Owner’s Policy (or BOP) combines three types of essential business insurance into one policy.

  1. General Liability Insurance General Liability Insurance covers a customer’s claims relating to bodily injury or property injury (in this case, the customer’s property). For a restaurant, this includes things like trip-and-fall incidents, food poisoning, or dry cleaning bills caused by spilled coffee.
  2. Property Insurance – Property Insurance, on the other hand, protects against damage to property that your restaurant owns. So if your staff accidentally overloads your industrial mixer or a fire puts your kitchen out of commission, you’ll be able to have the affected items repaired or replaced.
  3. Loss of Income – You might have known or heard about restaurants that had to permanently shut their doors because of a fire. “Didn’t they have insurance?” you ask? It’s likely they did…just not enough of it. Property Insurance can only go so far, but Loss of Income Coverage will cover just that: the loss of income you experienced while your burned-out kitchen was being rebuilt.


Food-Related Policies

food icons under umbrella

A restaurant isn’t a restaurant without the food, but all those delicious drinks and tempting tacos carry their own unique set of risks. Ensuring that you have adequate coverage means having a few supplemental policies.

  1. Liquor Liability InsuranceLiquor Liability Insurance covers damages that arise from you serving or selling alcohol to a customer. So if a customer is served too much to drink and drives away, any car accidents that he may cause don’t have to be the end of your restaurant.
  2. Food Contamination Insurance – A power outage just after closing time goes undiscovered for 36 hours. Your latest lettuce shipment falls under the listeria recall (but not before spreading the bacteria to the rest of your produce). There are hundreds of incidents that can contaminate or spoil the food in your kitchens. Food Contamination Insurance will cover the costs associated with restocking that lost inventory.


Additional Restaurant Insurance Policies

two umbrella icons

If you’re opening a restaurant, it’s likely that you have at least a few employees. Entrusting others to represent your business for you may give you more free time, but it can come with a lot of risk. Having some extra coverage on your restaurant insurance policy can help set your mind at ease.

  1. Workers’ Compensation Insurance – Florida law requires you to carry Workers’ Comp Insurance if you have four or more full- or part-time employees, but it’s a good thing to have no matter what. Anybody who works at your restaurant (including yourself!) is likely to become injured on the job; knowing you’re covered by Workers’ Comp will help you breathe a little easier.
  2. Employee Theft Insurance – Also known as Employee Dishonesty Insurance, Employee Theft Insurance will protect you if a less-than-honest employee steals a customer’s credit card number, pockets cash from the till, or takes a few bottles of liquor home.
  3. Employment Practices Liability Insurance – Restaurants are notorious for having a high turnover when it comes to employees. But sometimes, those ex-employees perceive their experience a little differently than you do. Employment Practices Liability Coverage will cover you in case you are sued by a former employee for discrimination, harassment, or improper termination.
  4. Commercial Auto Insurance – If your restaurant delivers food or has any company vehicles, Commercial Auto Insurance is crucial.



Protecting your restaurant against risk not only keeps your dream alive, it provides for your family, creates jobs for your employees, and keeps the public supplied with your top-notch empanadas (or ice cream…or pizza…or falafel…). That’s why it’s important to have the right level of restaurant insurance.

If you haven’t thought about insurance for your restaurant yet, now’s the time to do it. Our agents would love to hear more about your business so we can find the perfect insurance policy for you. (We also love to discover new restaurants!)

Call today to get a free quote and learn how we can cater to your needs.

About the Author

Jason received a Masters of Science & Management in Risk Management & Insurance from Florida State University. He has been with Harry Levine Insurance for 9 years and handles the leadership of daily operations. He was the 2013-2014 Florida Association of Insurance Agents Young Agent Council's Agent of the Year. Currently serves on FAIA Board of Directors.

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