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How much does insurance cost for restaurants?

The cost of restaurant insurance depends on the policies you choose, the unique risks your restaurant faces, the value of your business equipment, and several key operations factors. Cost estimates on this page are sourced from policies purchased by Insureon customers.
Business owner’s policy icon

Business owner’s policy costs for restaurants

Restaurant owners typically pay less than $180 per month for a business owner’s policy, or a median annual premium of $2,160.

A business owner’s policy bundles general liability insurance with property insurance, usually at a discounted rate. Pricing is determined by your restaurant’s location, operations, and value of business property and equipment. This policy may include business interruption insurance, which covers income lost at your restaurant due to an unexpected closure.

Median cost per year: $2,160
Policy limit: $1 million
Policy deductible: $1,000

Not all restaurants qualify for a business owner’s policy. Check with your Insureon agent to find out if you’re eligible.

Learn more about business owner’s policy coverage.

Workers’ compensation insurance icon

Workers’ compensation insurance costs for restaurants

The median cost for workers’ compensation insurance at a restaurant is less than $125 per month, or $1,500 annually. Policies can vary significantly depending on the state and business operations. Include accurate payroll figures in your quote application to avoid the need to adjust premium rates if your payroll amount changes.

Workers’ compensation insurance is required for restaurants in almost every state. This coverage helps pay medical fees and lost wages for employees who are injured on the job. Most policies include employer’s liability insurance, which protects owners against lawsuits related to workplace injuries.

Median cost per year: $1,500
Policy limit: $500,000

Learn more about workers’ compensation insurance.

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Liquor liability insurance costs for restaurants

The median cost for restaurant liquor liability insurance is a little over $50 per month, or $620 annually. This type of insurance protects restaurants that serve alcohol from liability for the actions of intoxicated customers. In some jurisdictions, your restaurant might need liquor liability insurance in order to obtain a liquor license.

Median cost per year: $620
Policy limit: $2 million

In some jurisdictions, your restaurant might need liquor liability insurance in order to obtain a liquor license.

Learn more about liquor liability insurance.

General liability insurance icon

General liability insurance costs for restaurants

Restaurants pay a median premium of $80 per month, or $950 annually, for general liability insurance. This policy provides protection for third-party injuries at restaurants, property damage and theft, and advertising injury.

Insureon’s licensed agents typically recommend purchasing a business owner’s policy for comprehensive coverage versus a standalone general liability policy that could leave business owners at risk.

Median cost per year: $950
Policy limit: $1 million
Policy deductible: None

Learn more about general liability insurance.

Get free quotes and compare policies with Insureon

Insureon’s restaurant insurance agents work with dozens of leading U.S. carriers to find the best coverage for your business. Apply today to compare policies with one free online application. If you decide to purchase a policy, you’ll work with an account manager who specializes in restaurant business risks.

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