How much does restaurant insurance cost?

Restaurants pay an average of about $251 per month, or $3,010 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to protect against common third-party risks and damage to your restaurant equipment, such as tableware and cookware. It typically costs less than purchasing each policy separately.

A BOP covers customer injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

This is the average business owner's policy for restaurant businesses that buy from Insureon:

Insurance premium: $251 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

Small, low-risk food businesses are often eligible for a business owner's policy.

Restaurant owners and other food service businesses may see higher costs if they choose to add endorsements to their policy.

Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help avoid financial losses if a fire or power outage forces your business operations to cease for an extended period of time or causes food spoilage.

The cost of a business owner's policy is based on a number of factors, including the value of your property, where you are located, and the number of employees you have.

Restaurant businesses pay an average of $141 per month, or $1,691 per year, for general liability insurance (sometimes called public liability insurance).

General liability insurance covers common restaurant risks, including third-party property damage and bodily injury. For example, if a customer slips and falls on a wet floor at your restaurant, a general liability policy would then cover their medical bills.

It also helps pay for legal fees if someone sues your business over copyright infringement or advertising injuries, including defamation. Though, one exclusion is alcohol-related claims. For that, look to liquor liability insurance.

In addition, some landlords may require restaurant owners to obtain proof of insurance to sign a commercial lease.

Below is the average general liability policy for restaurant companies that buy from Insureon:

Premium: $141 per month
Policy limits: $1 million per occurrence; $2 million aggregate

General liability coverage often includes product liability insurance, which protects your restaurant business against claims that a product you sold or distributed caused a foodborne illness.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the size of your business, your business income, the amount of foot traffic you have, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

The average cost for workers’ compensation insurance for restaurants is $113 per month, or $1,359 annually.

A workers’ compensation policy covers medical bills and lost income if you or an employee gets injured or ill on the job, such as a chef at your restaurant who cuts themselves with a sharp knife and needs urgent care. Businesses that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties.

Workers' comp state laws vary and your specific requirements will depend on the state you live in. For example, all restaurants are required to carry a workers' compensation policy in California if they have one or more employees. However, coverage is optional in Texas.

Most policies include employer’s liability insurance, which protects restaurant owners against lawsuits related to workplace injuries.

Since health insurance plans can deny claims for injuries related to your job, workers' compensation coverage is also recommended for sole proprietors, such as personal chefs, as a financial safety net and for extra peace of mind.

The cost of workers' comp depends on several factors, primarily your number of employees and their occupational risks. You can save money on your workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize employee injuries.

The average cost of a liquor liability insurance policy for a restaurant is about $45 per month, or $538 annually. This type of insurance protects restaurant companies from liability claims related to serving alcohol. In some jurisdictions, your restaurant might need liquor liability coverage in order to obtain a liquor license.

This is the average liquor liability policy for restaurant owners who buy from Insureon:

Premium cost: $45 per month
Policy limit: $1 million per occurrence, $2 million aggregate

What's more, many states have dram shop laws that hold a business liable for any damages caused by intoxicated customers that were served by your staff. This can make this coverage all the more important to protect businesses against the expensive legal fees and other financial losses from an incident.

Learn how to save money on your policy, which coverage options to choose, and how liquor liability costs are calculated.

Restaurants pay an average of $181 per month, or $2,173 per year, for commercial auto insurance.

This type of business insurance pays for property damage and medical expenses from accidents involving your company vehicles, such as your business-owned delivery van. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by your restaurant business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, claims history, the number and value of your vehicles, and the driving records of anyone permitted to drive. Learn how insurers calculate your premium and how to save money on commercial auto coverage.

Small businesses pay an average of $145 per month, or $1,740 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps restaurants recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other costs necessitated by state data breach laws.

The cost of cyber insurance depends on the amount of personal information handled by your restaurant, such as customer credit card numbers, along with the number of employees who can access that information.