Examining Your Need for Restaurant Liability Insurance

Restaurant Liability Insurance

An aspect of owning a restaurant that is of the utmost importance is insurance. This product, in all of its many available forms, can protect you from various concerns and exposures — from broken equipment to liability lawsuits. Depending on the sort of establishment you operate, you will need certain types of coverage. Restaurant liability insurance is perhaps the most important purchase you will ever make.

The most common types of restaurant insurance available, which are either required, or simply a smart choice to make as part of your overall coverage options, include:


  • Property insurance, which protects your property (building and business property) in case of fire or other events (It generally does not cover natural disasters, such as floods or earthquakes
  • General liability is the policy that protects you in the event someone slips and falls in your restaurant, or gets sick after eating there (regardless of whether it was your fault)
  • Liquor liability is a policy that most states require for any establishment holding a liquor license and it helps protect you if a customer has too much to drink and drives and hurts themselves, or someone else
  • Food contamination insurance comes in handy if you lose power, for any reason, and the entire contents of your walk-in refrigerator units and freezers spoil, since this policy would pay to replace the food
  • Automobile liability is necessary if you have a company vehicle (it may be covered in your general liability, but always check with your insurance agent first)
  • Workers compensation will protect you if an employee is hurt at work and most states require that all employers carry some type of workers comp, and
  • Life insurance may be another necessary policy, depending on your mortgage and financing, as you may need to carry a hefty life insurance policy to satisfy your lender It is also a good idea to have life insurance in case something does happen to you and your family is left with a restaurant they aren’t trained or equipped to operate, along with bills they aren’t able to pay.


Other policies are available as well. Every form of restaurant liability insurance is part of any successful restaurateur’s portfolio.


photo credit: Malai Chicken Tikka (license)