Find insurance for restaurants in Maryland
Learn about license requirements and the most common restaurant insurance policies in Maryland.
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What are the most common policies for restaurants in Maryland?
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 Maryland food establishments to protect against potential risks and financial losses.
Business owner's policy
A BOP bundles commercial property insurance and a general liability policy under one plan. It’s one of the most popular and cost-effective options for Maryland restaurants.
- Food contamination and spoilage
- Commercial property coverage
- Business interruption incidents and closures
Workers’ compensation insurance
Maryland requires workers' comp insurance for food service businesses with one or more employees. It also protects sole proprietors from work injury costs health insurance might deny.
- 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.
- 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.
- 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.
- 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.
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Which policies are required for restaurants in Maryland?
Workers' compensation insurance
To meet state requirements and operate legally in Maryland, restaurant owners with one or more 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 Maryland businesses are:
- $30,000 bodily injury liability per person
- $60,000 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.
Do I need a license or permit for my restaurant in Maryland?
Yes. Restaurant owners in Maryland 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 Maryland jurisdictions to legally operate your restaurant.
- Seller’s permit / sales and use tax license: Issued by the Maryland Comptroller if you sell taxable food or beverages.
- Food service facility license (health permit): Issued by your local health department to confirm your restaurant meets food safety and sanitation standards.
- Food handler’s permit / food safety certification: Required for employees who prepare or serve food to verify they’ve completed approved food safety training.
- Liquor license: Required if your restaurant serves beer, wine, or spirits, and is usually issued at the local level.
- Catering license: If you offer off-site food service, you may need additional approval from your local health department.
- Certificate of occupancy: Confirms your building complies with zoning and safety codes for restaurant use.
- Employee health permit: Some local jurisdictions require additional health clearances for staff.
Additional permits may be needed depending on your operations, such as mobile food permits for food trucks or zoning and building permits for brick-and-mortar locations.
To get your license, you'll likely need to take an exam, have a certain amount of experience, pass a background check, and pay a fee.
How much you'll pay for the fee depends on whether or not you are the sole owner of the business. Additionally, your restaurant insurance coverage premiums will vary depending on the type of work you do, whether you have employees, and other factors.
How much does restaurant insurance cost in Maryland?
A fast food restaurant that focuses on takeout will pay less for insurance than a large bar and grill or fine dining restaurant.
In Maryland, restaurant business owners who buy policies from Insureon pay an average of:
General liability: $35 per month
Workers' compensation: $43 per month
Business owner's policy: $58 per month
Factors that affect restaurant insurance costs include:
- Kitchen equipment and property
- Business income
- Types of business insurance purchased, such as equipment breakdown and umbrella insurance
- Coverage options, such as policy limits and exclusions
- Location, such as Germantown or Frederick
- Number of employees
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How do I get Maryland 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 Maryland 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.