How Much Does Insurance Cost for a Restaurant?

Nate Jones, CPCU, ARM, CLCS, AU
Jan 14
2 min read

Running a restaurant is rewarding but comes with financial risks. From customer injuries to kitchen accidents, having the right restaurant insurance protects your business and ensures peace of mind.

One of the most common questions restaurant owners ask is: “How much does insurance cost for a restaurant?” The answer depends on multiple factors, including your restaurant type, location, coverage needs, and risk profile. This guide breaks down the main factors affecting cost, the necessary policies, and how to get a quote quickly through Wexford Insurance.

Key Factors That Affect Restaurant Insurance Costs

Insurance premiums vary based on:

Type of Restaurant – A fine dining establishment may have higher liability than a small café or food truck.
Location – Urban areas or regions prone to natural disasters typically have higher rates.
Revenue and Payroll – Higher sales and more employees increase exposure and premiums.
Coverage Limits – Higher limits on liability, property, and workers’ compensation increase cost.
Claims History – Restaurants with prior insurance claims may face higher premiums.
Alcohol Service – Selling alcohol increases risk and may require liquor liability coverage.

For more detailed insights, check National Restaurant Association resources on insurance and risk management.

Typical Restaurant Insurance Policies

Most restaurants need a combination of policies:

General Liability Insurance – Covers customer injuries, property damage, and lawsuits.
Commercial Property Insurance – Protects your building, kitchen equipment, and inventory.
Workers’ Compensation Insurance – Required in most states, covering employee injuries.
Liquor Liability Insurance – Mandatory if serving alcohol.
Business Interruption Insurance – Replaces lost income if operations are temporarily halted.
Commercial Auto Insurance – Covers delivery vehicles or food trucks.

Typical Restaurant Insurance Costs

While rates depend on your location and business specifics, here are average annual costs in the U.S.:

Policy	Average Cost per Year	Notes
General Liability Insurance	$400 – $1,000	Covers customer injuries and property damage
Commercial Property Insurance	$500 – $2,000	Depends on property value, equipment, and inventory
Workers’ Compensation Insurance	$500 – $5,000	Varies by number of employees, payroll, and state requirements
Liquor Liability Insurance	$300 – $1,000	Required if alcohol is served
Business Interruption Insurance	$500 – $2,000	Helps replace lost income from closures
Commercial Auto Insurance	$1,000 – $2,500	For delivery vehicles or food trucks

Wexford Insurance — **REQUEST A FREE QUOTE**

How to Get a Restaurant Insurance Quote

To estimate costs accurately, have the following information ready:

Type of restaurant and services offered
Annual revenue and payroll details
Number of employees
Alcohol sales percentage
Square footage and location
Claims history

Working with a specialized agency like Wexford Insurance streamlines this process. They compare multiple carriers to find the best coverage at competitive rates, tailored specifically for restaurants.