Essential Insurance Coverages for Restaurants
Every restaurant needs core business insurance protection, though the exact policies and limits vary depending on your size, services, and daily operations. Working with an independent insurance agency ensures you get tailored coverage designed specifically for your restaurant.
Below are the must-have insurance policies for restaurants:
Business Owner’s Policy (BOP)
A BOP combines several essential coverages, including business property, inventory protection, general liability insurance for restaurants, and business interruption coverage to replace lost income following a covered event.
Workers’ Compensation Insurance
Required in most states, workers’ comp covers employee injuries—whether caused by slick floors, kitchen hazards, burns, or lifting injuries—and helps protect your restaurant from costly legal claims.
Commercial Auto Insurance
If your restaurant owns delivery vehicles, commercial auto insurance is required.
If employees use their own cars for deliveries, you’ll need non-owned auto liability insurance to protect your business in case their personal policy doesn’t provide adequate coverage.
Equipment Breakdown Insurance
Covers the repair or replacement of essential equipment if it fails unexpectedly. Some policies also reimburse you for spoiled food due to freezer or cooler breakdowns.
Liquor Liability Insurance
Any restaurant that serves alcohol must carry liquor liability insurance. It protects your business from lawsuits related to alcohol-related incidents stemming from drinks served at your establishment.
Employment Practices Liability Insurance (EPLI)
EPLI provides coverage for claims of wrongful termination, discrimination, harassment, and other employment-related issues—an increasingly important protection for restaurants of all sizes.
Cyber Liability Insurance
With high volumes of credit card transactions and customer data, restaurants are prime targets for data breaches. Cyber liability protects against financial losses associated with cyberattacks and data theft.
Umbrella Liability Insurance
Restaurants face high liability exposure. An umbrella policy increases your liability limits across your existing policies and offers added protection for everything from slip-and-fall incidents to alcohol-related claims. Umbrella options are available for fast food, casual dining, and fine-dining establishments.
Protect Your Restaurant with the Right Coverage
With so many different coverage options available, partnering with an experienced restaurant insurance expert—like Generazio Associates, Inc.—ensures you receive the right protection based on your unique risks, without unnecessary add-ons.
