What Kind of Insurance Do I Need for a Restaurant Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 17
- 2 min read
Opening a restaurant is a major investment—and like any business, it comes with risks. From kitchen fires to customer injuries, equipment breakdowns to employee accidents, restaurant owners face a wide range of potential liabilities.
That’s why having the right insurance coverage is essential to protect your business, your team, and your bottom line.
In this guide, we’ll break down the types of insurance every restaurant owner should consider.
Why you need it: General liability insurance protects your restaurant from third-party claims of bodily injury, property damage, or personal injury. For example, if a customer slips on a wet floor or gets food poisoning, this policy can cover legal fees, settlements, and medical costs.
Covers:
Slip-and-fall accidents
Food-related illnesses
Property damage to others
Advertising injury or libel
👉 This is often required by landlords and lenders before you can open your doors.
Why you need it: If your restaurant offers delivery, catering, or uses vehicles for business purposes, you need commercial auto insurance. Personal auto policies typically don’t cover business-related accidents.
Covers:
Accidents involving business-owned vehicles
Property damage and bodily injury
Vehicle theft or vandalism
Medical payments
💡 Even if you use your personal vehicle for deliveries, you may need a commercial policy or hired/non-owned auto coverage.
Why you need it: Your restaurant’s physical assets—like your kitchen equipment, furniture, signage, and inventory—are vital to your operations. Commercial property insurance protects these assets from damage or loss due to fire, theft, vandalism, or natural disasters.
Covers:
Kitchen equipment and appliances
Furniture and décor
Inventory and supplies
Building (if owned)
👉 Some policies also include business interruption coverage to help with lost income during repairs.
Why you need it: If you have employees, most states require you to carry workers’ compensation insurance. It covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.
Covers:
Job-related injuries (e.g., burns, cuts, slips)
Medical treatment and rehabilitation
Lost wages
Employer liability
💡 Even part-time or seasonal staff may need to be covered, depending on your state’s laws.
Why you need it: Your kitchen equipment is the heart of your restaurant. Equipment insurance (also known as equipment breakdown coverage) protects against mechanical failures, electrical surges, and other unexpected breakdowns.
Covers:
Ovens, refrigerators, and freezers
HVAC systems
POS systems and electronics
Repair or replacement costs
👉 This coverage is especially important for restaurants that rely on expensive or specialized equipment.
Final Thoughts
Running a restaurant is rewarding—but it’s also full of risks. The right insurance coverage can mean the difference between a minor setback and a major financial loss. At Wexford Insurance, we specialize in helping restaurant owners get the protection they need to operate with confidence.
Whether you're opening your first location or expanding your brand, we’ll help you find the right policies tailored to your restaurant’s needs.
👉Contact us today.
