Insurance for a restaurant / bar: what you need + typical cost.

For your business: The BOP bundles GL + Property at a discount — near-universal for food service. Add liquor liability as a rider.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Slip-and-fall incidents and food-poisoning claims are the most common GL claims for food service businesses.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Not typically needed unless you provide catering consulting or event planning services.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Restaurants employ staff in hazardous conditions (knives, heat, slippery floors). Required in virtually all states.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: Kitchen equipment, furniture, and leasehold improvements are major assets. Fire, theft, and equipment breakdown coverage are critical.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: POS systems store payment card data. A breach triggers PCI DSS fines and notification costs.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: If you operate delivery vehicles or a catering van, commercial auto is required. Personal auto does not cover business deliveries.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: Extends limits above GL if a severe incident (food poisoning outbreak, serious injury) leads to large claims.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

Do I need liquor liability if I only serve beer and wine, not spirits?

Yes. Most state dram-shop laws apply equally to beer, wine, and liquor — if a guest gets intoxicated at your establishment and causes harm afterward, the type of alcohol doesn't matter. The premium for beer/wine-only is lower (often $400-$800/year less than a full bar) but the coverage itself is non-optional once you're licensed.

What's the difference between a BOP and standalone GL + Property for a restaurant?

A BOP bundles GL and Property at a 5-15% discount versus buying them separately, plus adds business interruption coverage by default. For most restaurants under $5M revenue, a BOP is the right choice. Above that, a standalone program lets you tune limits per coverage and is usually cheaper at scale.

How do kitchen fires affect my premiums for the next renewal?

A single grease fire claim under $25K usually doesn't move the needle. A claim over $50K typically results in a 10-20% premium increase at renewal. Two claims in three years and you'll get non-renewed by most major carriers and pushed to surplus-lines markets at 30-50% higher rates.