Find insurance for restaurants in Pennsylvania
Learn about license requirements and the most common restaurant insurance policies in Pennsylvania.
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What are the most common policies for restaurants in Pennsylvania?
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 Pennsylvania 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 Pennsylvania restaurants.
- Food contamination and spoilage
- Commercial property coverage
- Business interruption insurance incidents
Workers’ compensation insurance
Pennsylvania requires workers' comp for food service businesses with 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 claims
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 Pennsylvania?
Whether you're in Philadelphia, Pittsburgh, or elsewhere in Pennsylvania, 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 Pennsylvania, 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 Pennsylvania businesses are:
- Bodily injury liability: $15,000 per person / $30,000 per accident
- Property damage liability: $5,000 per accident
- Personal injury protection (PIP): $5,000
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 Pennsylvania?
Yes. Restaurant owners in Pennsylvania 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 your local city or municipality to legally operate your restaurant. Some townships and boroughs in Pennsylvania require a general business privilege license.
- Seller’s permit (sales tax license): Required if you sell prepared food and beverages subject to sales tax. This is issued by the Pennsylvania Department of Revenue so you can collect and remit sales tax.
- Retail food facility license (food facility health permit): Issued and regulated by either the Pennsylvania Department of Agriculture (PDA) or your local/county health department, depending on your location. This license ensures compliance with Pennsylvania’s food safety and sanitation regulations.
- Food employee certification (food handler/food safety certification): At least one certified food employee (such as a manager) must complete an approved food safety certification course. Some municipalities may require all food employees to complete basic food safety training.
- Liquor license: If you plan to serve alcohol, you’ll need a license from the Pennsylvania Liquor Control Board (PLCB). Liquor licenses in Pennsylvania can be limited and costly, depending on your county and license type.
- Catering or mobile food permits: If you operate a food truck or offer off-site catering, you may need additional mobile food facility licenses, commissary agreements, or temporary event permits.
- Certificate of occupancy: Issued by your local municipality after inspections confirm that your building meets zoning, fire, and building code requirements for restaurant use.
- Sign permit: Required by many municipalities before installing exterior signage.
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 Pennsylvania?
A fast food eatery that focuses on takeout will pay less for insurance than a large bar and grill or fine dining restaurant.
In Pennsylvania, restaurant business owners who buy policies from Insureon pay an average of:
General liability: $42 per month
Workers' compensation: $58 per month
Business owner's policy: $62 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 and exclusions
- Location, such as Harrisburg, Allentown, or Lancaster
- Number of employees
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How do I get Pennsylvania 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 Pennsylvania 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 a cheap restaurant insurance plan that fits your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.