Find insurance for restaurants in North Carolina
Learn about license requirements and the most common restaurant insurance policies in North Carolina.
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What are the most common policies for restaurants in North Carolina?
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 North Carolina 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 North Carolina restaurants.
- Food contamination and spoilage
- Commercial property coverage
- Business interruption incidents and closures
Workers’ compensation insurance
North Carolina requires workers' comp for food service businesses with three or more employees. It also protects sole proprietors from work injury costs that 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 credit card information and email addresses.
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Which policies are required for restaurants in North Carolina?
Whether you're in Raleigh, Charlotte, or elsewhere in North Carolina, you may need the following types of restaurant business insurance to comply with local laws:
Workers' compensation insurance
To meet state requirements and operate legally in North Carolina, restaurant owners with three 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 North Carolina businesses are:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability
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 North Carolina?
Yes. Restaurant owners in North Carolina 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 by many North Carolina cities or counties to legally operate your restaurant.
- Certificate of occupancy: Issued by your local building or zoning department to confirm the space is safe and approved for restaurant use.
- Seller’s permit (sales and use tax ID): Issued by the North Carolina Department of Revenue (NCDOR) if you sell food or beverages and collect sales tax.
- Food establishment permit (health permit): Required from the county health department to ensure your restaurant meets food safety and sanitation standards.
- Food handler’s permit / employee health permits: Required for staff who prepare or serve food, verifying completion of food safety training.
- Liquor license: Issued by the North Carolina Alcoholic Beverage Control (ABC) Commission if your restaurant serves beer, wine, or spirits.
- Catering license / approvals: While there’s no standalone “catering license,” you must meet all health, safety, and alcohol licensing rules if you offer off-site catering services.
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 may 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 North Carolina?
A fast food restaurant or coffee shop that focuses on takeout will pay less for insurance than a large bar and grill or fine dining restaurant.
In North Carolina, restaurant business owners who buy policies from Insureon pay an average of:
General liability: $42 per month
Workers' compensation: $52 per month
Business owner's policy: $54 per month
Factors that affect restaurant insurance costs during underwriting 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, exclusions, and endorsements
- Business location
- Number of employees
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How do I get North Carolina restaurant insurance?
Insureon helps you save time and money shopping for restaurant liability policies by comparing quotes from top U.S. insurance companies.
Our insurance agents are licensed in North Carolina 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.