Restaurant Insurance Explained

What can restaurant insurance cover?

Restaurant insurance is often provided on a business owner’s insurance policy which provides broad coverage based upon what you need. This policy can cover:

  • General liability
  • Commercial property (building, business personal property, tenant’s improvements and betterments)
  • Liquor liability, dependent upon the percentage of sales to overall gross sales
  • Loss of business income if business has to close because of a covered loss
  • Employment practices liability
  • Named non-owned and hired auto coverage
  • Food Contamination and spoilage

We also recommend securing a separate worker’s compensation, cyber insurance policy and umbrella policy. One of our company partners, AmTrust, put together a risk report on restaurants. Download it now.

What we will need to know about your restaurant:

We represent multiple companies that focus on restaurants such as AmTrust, The Hartford, Travelers and Chubb. However, there are several things that can factor in your rate or if they will offer the coverage.

  • Is the fire suppression UL-300 compliant?
  • Is there a central station fire, sprinkler, or burglar alarm system?
  • Is there deep frying?
  • Contract for commercial cleaning of exhaust hoods.
  • Is it casual, fine dining, fast food (if fast food, is it a chain)?
  • Do you sell alcohol (if so % of alcohol to gross sales)
  • Do you have any special events/promotions such as music on the weekend or special events? Dancing?
  • Do you cater? Deliver? Offer take-out?
  • Do you have happy hours?
  • If the building is over 15 years old, year of updates to electrical, plumbing, heating/air, and roofing.
  • Are you a franchise?
  • Hours of operation

Of course, the company is going to need to know if you own or lease the property, and if the latter, are you responsible for the building insurance because of a triple net lease (frequently seen here in Denton).

How is the cost of insurance determined for my restaurant?

After determining the underwriting noted above, the main factors are your annual gross sales.

Let one of our experienced insurance advisors chat with you and so they can customize a policy for your restaurant.

📞 Let’s talk coverage or 📝 get a custom quote.