Running your own business, while extremely rewarding, is filled with a lot of challenges and risks – especially if you are opening your very own restaurant. No matter how prepared you are, more likely than not your restaurant will encounter some accident along the way. For example, a customer could slip and injure themselves or a fire could destroy a lot of expensive equipment in your kitchen. This shouldn’t put you off from fulfilling your dream of being a restaurant owner though. The best thing to do is to try and minimize the risks in your restaurant and get the insurance policies your restaurant needs to be covered.

If you’re considering opening your own restaurant and are looking for more information on the types of insurance for restaurants and how much does restaurant insurance cost, then keep reading. We’ll cover everything you need to know about restaurant insurance coverage in this article.

What Insurance Does a Restaurant Need?

While there are multiple types of restaurant insurance coverage a business owner can take out depending on the risks of their restaurant, there are four main ones that all restaurant owners should have in order to protect their business and themselves:

General Liability Insurance- This will help protect you if an injury is caused to either a customer or an employee, or if someone files a complaint that is associated with copyright infringement. General liability insurance also covers the legal fees when someone files a lawsuit against your restaurant.

Commercial Property Insurance- This type of insurance is designed to protect the equipment, tools, and building the restaurant is located in. If there is a natural disaster or fire, for example, this insurance will cover the expenses.

Worker’s Compensation Insurance- This type of insurance will cover your employees while they are working for you. For example, if an employee injures themselves while preparing food or using sharp kitchen equipment, this insurance will cover medical expenses and rehabilitation treatment. This will also cover the lost salaries of the injured employees and protect the restaurant against lawsuits associated with negligence.

Crime Insurance- This type of insurance will protect your business from petty theft, forgery, burglary, extortion, computer fraud, or robbery. If you do not have this insurance, you would be responsible for any money, data, or properties that were stolen.

How Much Does Restaurant Insurance Cost?

As with many insurance policies, the cost of your policy will depend on a variety of different factors. What state does your restaurant operate in? How long have you been running your restaurant? Do you sell alcoholic drinks? These are all questions an insurance service provider will ask you to help them determine the cost of insuring your business.

When it comes to insurance, many business owners tend to go for the cheapest option. While saving some cash upfront may be good, a cheap policy could wind up costing you your entire livelihood if a claim comes up that isn’t covered by your policy. On the other hand, purchasing the most expensive commercial insurance policy may not be what’s best for your business either. It’s important to read the fine print of your insurance policy carefully and understand the exclusions and inclusions of your coverage and strike the right balance between meeting your restaurant’s requirements while keeping your monthly premiums within your budget.


If you’re interested in starting your own restaurant business, or you own a restaurant and are looking for a new insurance provider, look no further than Dunham Insurance Services. Every employee at Dunham Insurance Services is passionate about creating clear and comprehensive insurance policies for their clients. Contact us today to discuss your business and how we can create the best policy to suit your business needs.