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Find insurance for restaurants in Colorado
Learn about license requirements and the most common restaurant insurance policies in Colorado.
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What are the most common policies for restaurants in Colorado?
Restaurants may need different types of insurance coverage depending on the food and drinks they serve and their location. These are the most popular restaurant insurance policies for Colorado food establishments to protect against potential risks and financial losses.
Business owner's policy
A BOP bundles commercial property insurance and general liability insurance under one plan. It’s one of the most popular and cost-effective options for Colorado restaurants.
BEST FOR
- Food contamination and spoilage
- Commercial property coverage
- Business interruption incidents and closures
Workers’ compensation insurance
Colorado requires workers' comp for food service businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal costs from employee injuries
General liability insurance
This insurance policy provides liability coverage and financial protection from common third-party business risks, such as a customer slip-and-fall accident at your food service business.
BEST FOR
- Customer bodily injuries
- Damaged customer property
- Product liability lawsuits
Commercial auto insurance
This policy covers the cost of accidents involving any delivery vehicles owned by your restaurant, including damage caused to another person's car and medical bills.
BEST FOR
- Medical bills from accidents
- Property damage from accidents
- Vehicle theft and vandalism
Liquor liability insurance
This policy covers legal fees, property damage, and medical costs if alcohol is served or sold at your restaurant to a visibly intoxicated person who then proceeds to harm others.
BEST FOR
- Injuries caused by intoxicated patrons
- Property damage caused by intoxicated patrons
- Legal defense costs
Cyber insurance
Cyber liability insurance helps restaurants recover from cyberattacks and data breaches. It's recommended for any business that stores customer information.
BEST FOR
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Looking for different coverage? See more policies.
Which policies are required for restaurants in Colorado?
Workers' compensation insurance
To meet state requirements and operate legally in Colorado, restaurant owners with employees must carry workers’ compensation insurance, which helps pay for medical expenses and disability benefits if a worker is injured or becomes ill on the job.
Additionally, most policies also include employer's liability insurance, which helps cover legal costs if an employee files a workplace injury lawsuit.
Independent contractors and sole proprietors without employees aren’t required to carry workers’ comp. However, many choose to purchase coverage for added protection, as personal health insurance is unlikely to cover work-related injury and illness claims.
Commercial auto insurance
Commercial auto insurance covers property damage and medical bills resulting from an accident involving your restaurant business's vehicle. Depending on the coverage options you choose, it can also pay for vehicle theft, weather damage, and vandalism.
Minimum auto liability requirements for Colorado businesses are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
For vehicles that are used by the business but are leased, rented, or otherwise not owned by the company, you'll need a separate policy called hired and non-owned auto insurance (HNOA). This policy provides liability insurance but it does not cover damage to the insured vehicle.
Personal auto insurance will typically not cover any driving for business purposes, which is why you may need supplemental coverage.
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Do I need a license or permit for my restaurant in Colorado?
Yes. Restaurant owners in Colorado may need several licenses and permits before opening or operating their business. Specific requirements can vary depending on your city or county, but most restaurants need the following:
- Business license: Required in most Colorado cities and counties to legally operate your restaurant.
- Sales tax license (seller’s permit): Issued by the Colorado Department of Revenue if you sell food or beverages and collect sales tax.
- Retail food establishment license (health permit): Required from your local public health department to ensure compliance with food safety and sanitation regulations.
- Food handler’s permit / food safety certification: Required for employees who prepare or serve food to verify completion of approved food safety training.
- Liquor license: Issued by the Colorado Department of Revenue and approved locally if your restaurant serves alcohol.
- Catering license: Required if you plan to provide off-site food service, often through your local health department.
- Certificate of occupancy: Confirms your building meets zoning, fire, and safety codes for restaurant use.
Additional permits may be needed depending on your operations, such as mobile food permits for food trucks, signage permits, or building and fire department inspections.
To get your licenses, you’ll typically need to submit applications, pass inspections, pay fees, and sometimes complete training or exams.
How much you’ll pay in fees depends on your location and the type of restaurant you operate. Additionally, your restaurant insurance coverage premiums will vary based on factors like the size of your business, whether you have employees, the services you offer, and your claims history.
How much does restaurant insurance cost in Colorado?
A fast food restaurant that focuses on takeout will pay less for insurance than a large bar and grill or fine dining restaurant.
In Colorado, restaurant business owners who buy policies from Insureon pay an average of:
General liability: $52 per month
Workers' compensation: $54 per month
Business owner's policy: $73 per month
Factors that affect restaurant insurance costs include:
- Kitchen equipment and property
- Business income
- Types of insurance products purchased, such as equipment breakdown and employment practices liability
- Coverage options, such as policy limits and exclusions
- Location, such as Colorado Springs or Vail
- Number of employees
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How do I get Colorado restaurant insurance?
Insureon helps you save time and money shopping for restaurant liability insurance by comparing quotes from top U.S. insurance companies.
Our insurance agents are licensed in Colorado and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number of employees and restaurant operations
- Current and projected revenue
- Business partnerships
- Desired coverage limits
- Claims history
- Commercial lease insurance requirements
Apply for free insurance quotes today to find cheap restaurant insurance that fits your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.