What Insurance Coverage Do I Need for My Restaurant?

Running a restaurant is both rewarding and challenging. Whether you operate a small café or a large fine-dining establishment, having the right insurance coverage is essential to protecting your business from financial risks. The following is a breakdown of the key coverages every restaurant owner should consider.

General Liability Insurance

This is the foundation of any restaurant insurance policy. It covers claims related to customer injuries, foodborne illnesses, and property damage caused by your business. If a customer slips and falls in your dining area, general liability insurance helps cover medical expenses and legal fees.

Commercial Property Insurance

Your restaurant’s physical location, equipment, furniture and inventory likely represent a significant investment. Commercial property insurance may help protect against financial losses from fires, storms, vandalism and other disasters. If a fire damages your kitchen, this coverage may repair or replace the affected property.

Liquor Liability Insurance

If your restaurant serves alcohol, you need liquor liability insurance. This policy covers legal fees and damages if an intoxicated patron causes harm to themselves or others after drinking at your establishment.

Commercial Auto Insurance

If your restaurant offers delivery services or uses company-owned vehicles for catering, you need commercial auto insurance. This policy covers accidents, property damage and liability claims involving your business vehicles.

Food Contamination and Spoilage Insurance

A power outage or equipment failure can result in spoiled food and lost revenue. Food contamination and spoilage insurance may help cover the cost of replacing perishable inventory and any losses due to foodborne illness outbreaks.

Business Interruption Insurance

If an unexpected event, such as a fire or natural disaster, forces you to close temporarily, business interruption insurance can help cover lost income and operating expenses.

Contact Esquivel Insurance Agency in Houston, Texas, to get a free quote on insurance for your restaurant.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.