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How much does business insurance cost for food and beverage professionals?

The cost of food service insurance depends on the size of your business, its level of risk, and the value of your equipment. Cost estimates are sourced from policies purchased by Insureon customers.
Business owner’s policy icon

Business owner’s policy costs for food and beverage businesses

Food and beverage businesses pay a median premium of about $135 per month, or $1,610 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

A BOP protects against 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.

Learn more about business owner’s policy.

The cost of a BOP depends on your business property

Among food and beverage businesses that purchase a business owner’s policy with Insureon, 28% pay less than $1,000 per year and 31% pay between $1,000 and $2,000 per year.

The cost varies depending on how much property coverage your business requires. For example, a restaurant with expensive commercial kitchen equipment will pay more for property insurance than a coffee shop with a small sandwich preparation area.

 Cost of a business owner’s policy for food and beverage businesses
Workers’ compensation insurance icon

Workers’ compensation insurance costs for food and beverage businesses

To meet your state’s requirements and avoid penalties, food and beverage businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness.

For food and beverage businesses, workers’ compensation insurance costs a median of about $115 per month, or $1,355 per year.

Learn more about workers’ compensation insurance.

Workers' comp costs vary depending on your employees

Among food and beverage businesses that purchase workers’ compensation insurance with Insureon, 23% pay less than $800 per year and 36% pay between $800 and $1,600 per year. The cost depends on the number of workers, their level of occupational risk, and other factors.

Cost of workers’ compensation insurance for food and beverage businesses
Liquor liability insurance icon

Liquor liability insurance costs for food and beverage businesses

The median cost of liquor liability insurance is $77 per month, or $927 annually, for food and beverage businesses.

Liquor liability insurance offers crucial coverage for small businesses that serve alcohol. It protects against customer injury or property damage caused by an individual who became intoxicated at your place of business.

Learn more about liquor liability insurance.

The cost of liquor liability insurance depends on alcohol sales

Among food and beverage businesses that purchase liquor liability insurance (primarily restaurants, caterers, and bars), 30% pay less than $600 per year and 33% pay between $600 and $1,200 per year. Bars tend to pay more for liquor liability insurance (a median cost of $2,057) compared to restaurants ($547) and caterers ($773).

The cost varies depending on type of business and percentage of sales involving alcohol. Other factors include your location and your choice of policy limits.

Cost of liquor liability insurance for food and beverage businesses
General liability insurance icon

General liability insurance costs for food and beverage businesses

Food and beverage businesses pay a median premium of about $40 per month, or $500 per year, for general liability insurance. This policy provides protection for third-party bodily injuries, property damage, and advertising injury.

Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your kitchen equipment, and costs less than purchasing each policy separately.

Learn more about general liability insurance.

Your industry risks affect general liability costs

Among food and beverage businesses that purchase general liability with Insureon, 36% pay less than $400 per year and 46% pay between $400 and $800 per year. High-risk businesses such as bars tend to pay more for general liability.

Cost of general liability insurance for food and beverage businesses

Common general liability policy limits for food businesses

Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.

Most food and beverage businesses (97%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Commercial auto insurance icon

Commercial auto insurance costs for food and beverage businesses

In general, food service businesses pay a median premium of $163 per month, or $1,960 annually, for commercial auto insurance. Commercial auto insurance is a requirement for food and beverage businesses that own vehicles, such as catering vans and food trucks. Personal vehicles used for business purposes may also need coverage beyond your personal auto policy.

Your vehicles and their use determine commercial auto costs

Among food and beverage businesses that purchase commercial auto with Insureon, 24% pay less than $1,000 per year and 27% pay between $1,000 and $2,000 per year.

The cost depends on the vehicle's value and how much your employees drive. For example, food trucks pay a median premium of $178 per month, or $2,131 annually. In contrast, the median premium for caterers is $31 per month, or $367 annually.

Learn more about commercial auto insurance.

Cost of commercial auto insurance for food and beverage businesses

Explore insurance costs for your business

Learn more about insurance costs for your profession before comparing quotes:

Compare quotes from trusted carriers with Insureon

Insureon’s food service insurance agents work with top-rated U.S. carriers to find the best coverage for your business. Apply today to compare multiple quotes with one free online application. Work with an account manager who specializes in the unique risks of restaurants, bars, coffee shops, and food trucks.

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