If you own or operate a restaurant, your daily responsibilities may range from administrative tasks, reviewing inventory and overhead, and general maintenance of your food-based establishment. while you may if you have With a good understanding of what it takes to run and market your restaurant successfully, several unforeseen factors can throw your plans off the rails and derail any progress you’ve made toward becoming a top restaurant in your area.
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One way to protect your restaurant from unexpected damage is to equip yourself with restaurant insurance, which covers you in the event of lawsuits, staff injuries, and other potential liabilities. Here we take a look at the restaurant insurance landscape and the costs associated with the different policies and coverage options that can help protect your restaurant.
What insurance coverage do I need for my restaurant?
Determining the specific insurance needed for your restaurant requires a thorough review of the risks associated with running your operation and the specific types of coverages that can help mitigate those risks. Although every restaurant is different, some policies apply to most, with the 2 most popular types of restaurant insurance policies being general liability insurance and commercial property insurance.
general liability insurance: a food liability policy helps protect your restaurant from lawsuits caused by foodborne illnesses and accidents, food poisoning, as well as other legal fees resulting from injuries for customer slips and falls. , libel or accusations of slander and other damages for which you may be liable due to the actions of your restaurant employees or your business operations in general. General liability also helps cover damages resulting in medical bills and medical expenses incurred by clients.
Commercial property insurance: Commercial property insurance helps protect your restaurant from damage or loss resulting from vandalism or theft and also helps cover your restaurant against physical damage to your property and equipment as a result of fire, flood, electrical problems, or storm.
To obtain an overall discounted rate, many restaurant owners have opted to combine general liability insurance and commercial property insurance in the form of a business owner’s policy, or bop. The cost of a business owner’s policy is determined by the value of the covered property, the location of the restaurant, the equipment used by the restaurant, and a variety of other factors.
how much will my restaurant insurance cost per year?
The nature of your restaurant, what you serve, where you serve, your type of clientele, and the size of your business will generally affect how much you’ll pay for restaurant insurance.
wondering, “how much is restaurant insurance?” it’s the first step in discovering the types of insurance that might apply to your restaurant’s specific needs.
The average cost of restaurant insurance therefore varies widely. For most restaurants, it’s typical to pay around $4,000 annually for a combination of a business owner’s policy, workers’ compensation insurance, and liquor liability insurance.
There is also a wide range of prices for each specific policy available to you, so the total cost of your restaurant insurance depends largely on your coverage needs and the corresponding policies you choose.
The average general liability insurance costs about $900 per year, $80 per month, ranging from $500 to $2,500 per year.
The average commercial property liability insurance costs about $740 per year and about $60 per month, ranging from $500 to $2,500 annually.
Below are 2 other popular restaurant insurance policies, and their related costs, that could apply to your business.
- Workers’ Compensation Insurance: Workers’ compensation insurance provides employees injured on the job with essential coverage. The cost of the policy fluctuates depending on the number of employees, the location of the restaurant and the type of restaurant you operate. policies range in price from $600 to $10,000 a year, with an average cost of $1,500 a year or $150 a month. if your restaurant has a history of employee injuries, your prices may be higher.
- Alcoholic Beverage Liability Insurance: Alcoholic beverage liability insurance is generally required if your restaurant sells alcohol as part of its operation. The policy will protect you if you serve intoxicated customers who end up hurting themselves or someone else or causing property damage. The average cost of liquor liability insurance is around $600 annually, $50 per month, with most liquor liability policies ranging from $300 to $3,000 annually.
- Commercial Auto Insurance: Commercial auto insurance will protect you from damages resulting from vehicle-related mishaps, such as car accidents and bodily injuries resulting from collisions.
- Equipment Breakdown Insurance: If the equipment you use to handle your food-related restaurant work goes down, Equipment Breakdown Insurance will have you covered. Equipment breakdown policies cover everything from replacement costs for fryers and refrigerators to computer malfunctions. Electrical and non-electrical equipment is covered by equipment breakdown insurance, as long as the equipment is used as part of your restaurant’s food-related business.
- Breakage Insurance: Breakage insurance covers your restaurant in the event of utility failures that cause damage or inventory loss.
- Business Interruption Insurance: In the event of unforeseen circumstances that cause your restaurant to go out of business, Business Interruption Insurance will help you maintain a “business income” to mitigate the impact on your bottom line end.
In addition to workers’ compensation insurance and liquor liability insurance, certain restaurants may benefit from expanded coverage if part of their business involves the transportation of food or food-related goods or the use and maintenance of various pieces of equipment and food-related machinery. .
If your restaurant could benefit from policies such as equipment breakdown insurance, liquor liability insurance, or commercial auto insurance, you should add a restaurant endorsement to your general liability coverage. Doing so creates a strong business owner’s policy, which will reduce the cumulative cost of your small business insurance.
what kind of insurance do I need to open a restaurant?
Depending on the type of restaurant you are opening, different types of insurance are more applicable to your operation than others. The needs and requirements of a bakery may differ from a California sushi restaurant, which may differ from a food truck, which may differ from a fast food outlet.
Once you understand what sector of the restaurant industry your restaurant fits into, you’ll be able to research your competitors and see the types of insurance they use to protect their business. Arming yourself with knowledge of the specific policies your competition uses will help you better understand your industry and help you make more informed decisions about which insurance coverages are most applicable to your specific restaurant. A reputable insurance agency or insurance agent can help you determine the types of insurance that are best suited for your business.
how much does bar insurance cost?
one of the most popular restaurants that exist is the bar. Whether you run a tavern, lounge or nightclub, being recognized as an establishment that predominantly serves alcohol carries additional risks on top of those normally associated with a basic restaurant. Increased risk also comes with higher costs, like buying a liquor license. There may also be an increase in the cost of restaurant liability insurance, insurance premiums, and an increase in deductibles, so be prepared to spend more money on bar insurance than you would on insurance for other establishments, such as coffee shops.
since a combination of liquor liability insurance, workers’ compensation insurance and a business owner’s policy costs, on average, about $4,000, the cost of insuring a bar will fall in that vicinity general. the price will be a little higher or lower depending on the additional policies you choose to purchase. At a minimum, you’ll want to obtain a general liability insurance policy, a commercial insurance policy, an alcoholic beverage liability insurance policy, and a workers’ compensation insurance policy.
what are some restaurant insurance companies?
When choosing your restaurant insurance, you have many insurance carriers and carriers to choose from. however, not all insurance providers are the same. Some will knowingly increase your insurance quote, while others may not be able to offer quality policies that protect you in the areas of your business that you want to insure. If you’re looking for a company that offers top-tier policies at affordable prices, check out Huckleberry for all your restaurant insurance needs.
save money on commercial restaurant insurance with huckleberry
huckleberry makes it incredibly easy for you to find the specific restaurant insurance policies you need for your food-based business and can also provide you with a restaurant insurance quote in less time than it takes to cut a salad.
By combining multiple policies under one business owner’s policy, you’ll save time and money after your first click.
With Huckleberry, you can rest easy knowing your restaurant operation is covered for all of life’s unforeseen circumstances, giving you the peace of mind to focus on growing your restaurant and delivering a world-class experience to your customers.