3 reasons to buy restaurant insurance

3 Reasons to buy Restaurant Insurance

Insurance can be expensive, especially for a restaurant business. However, If you have a property loss or suffer damages from a lawsuit, commercial insurance will help prevent a large financial loss from occurring to your restaurant.

I can list more than 3 reasons to buy restaurant insurance, but I always tell business owners starting a restaurant that the annual premium you pay now, will pale in comparison to the cost of a large lawsuit or property loss that may happen in the future. To start here are 3 reasons to buy restaurant insurance:

1- You can’t predict the future

Everyday is different. Grease fire, customer slips and falls, auto accident, employee burns their hand; these are all accidental losses you don’t plan to have happen that day. It is a fact though, that restaurants are exposed to these types of losses.

Restaurant insurance is there to pay your claims and protect your financials when damages like these occur. Truth is you can’t budget for a large lawsuit, but by purchasing insurance you have financial protection available to your business in the event that it does happen.


Having commercial insurance in place can be a significant advantage, provided that you and your insurance agent have structured a restaurant insurance policy suited to your needs.

A comprehensive restaurant insurance program will allow your restaurant to be financially leveraged to pay for a claim without a significant disruption to budget. This leverage will allow the restaurant to continue operating after a property loss or liability claim.

3- Peace of Mind

You and your insurance broker need to make sure your coverage needs are addressed, and review your policies at least annually. Purchasing restaurant insurance will allow you to operate without the fear of a large loss. Knowing that you are covered for property losses, lawsuits, and injuries to employees will allow you to focus on what is important to your restaurant.

Restaurant insurance is not one size fits all.

Each restaurant or food serving business has it’s own unique needs and as an owner of a restaurant you should partner with your broker to develop a restaurant insurance program suited to your operations.

Restaurant Insurance may include:

  • Commercial Property
  • General Liability
  • Business Auto
  • Workers Compensation (Required in California if you have employees).

*After analyzing your business you may have additional coverage needs.