You know that you need insurance for your restaurant – you’re just not sure what types of insurance to purchase or how much it might cost you.
Here's what you need to know about coverage areas, potential costs and the risks of going without insurance.
Before you spend money on policies you don't necessarily need, here's what you should know about your risks as a restaurant owner, and what kinds of insurance coverage will help you mitigate them.
The Basic Types of Business Insurance
All business owners need general liability insurance, also known as trip and fall insurance. This policy covers you if someone is injured or has their property damaged on your premises, or by you or an employee through a work task. The risks of operating without general liability insurance are very high. No one can predict when someone might slip or trip at your restaurant. In many states, you can’t even open your business without general liability insurance.
You also shouldn’t open your doors without property insurance. It covers you for damage to the property, your business furniture, inventory, business items like computers or display cabinets and other fixtures. General liability and property insurance are often sold in one bundle called a Business Owners’ Policy, which reduces the price of both policies.
Additional Business Insurance Policies
There are several more types of business insurance policies, but many restaurants don't require all of them to safely operate. It's important to review your business's specific risks to determine which policies you should purchase. Below are 10 types of business insurance worth considering for your restaurant:
Every business is unique, so it’s impossible to say how much restaurant insurance will cost you without getting a tailored quote. But on average, basic general liability insurance, property insurance and workers compensation can cost between $500 and $2,000 per year, per policy for a small business.
Your final insurance cost will be determined by a few factors. These can include:
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Honesti Owens, Ph.D.
Commercial Specialist, P&C Instructor, & Notary
Licensed Agent, Accident, Sickness, Casualty, Life & Property
AL, FL, GA, IN, LA, MD, NJ, OH, SC, TN, TX, VA