Many challenges come with running restaurants, from ensuring customer satisfaction to managing staff. However, the fundamental aspect is having adequate business insurance for restaurants. Restaurant insurance becomes a necessity in order to protect your business against risks such as liability claims, property loss, and loss of income.
This article will focus on the various aspects of commercial restaurant insurance coverage, including types, cost considerations, and how to get a quote.
Restaurant Liability Insurance
Understanding Liability Insurance
A restaurant’s commercial insurance policy must include restaurant liability insurance. It is designed to safeguard your business against lawsuits from customers or clients who sustain injuries or damages while on your premises. This type of insurance usually has:
- General Liability Insurance: Covers bodily injury and property damage claims made by customers or third parties.
- Product Liability Insurance: Protects against claims made concerning food-related illnesses or injuries caused by the food products that are served within the premises of the restaurant.
- Liquor Liability Insurance: The majority of clients served in a restaurant often ask for alcohol, it means restaurants that provide alcohol should be covered by this particular type of insurance.
- Workers’ Compensation Insurance: Insurance that covers medical costs as well as lost earnings for an employee who has been injured due to work activities.
Restaurant General Liability Insurance
Any owner of a restaurant knows the value of general liability insurance. Without it, business owners are vulnerable to risks of being sued or receiving claims for accidents or injuries sustained on the owner’s premises.
The average restaurant owner should expect to pay between $500 to $2,500 per year for this coverage but as always, one’s business location and scope will determine the exact cost.
Key benefits include:
- The insurer is liable to defend all claims and reimburse all the legal expenses incurred in the defense of all the claims.
- Liability for claim settlements or verdict amounts in favor of the plaintiff including appellate costs.
- Coverage for Business interruption loss expenses that would likely be incurred in the event of a legal suit, so the business could continue to operate with minor financial burdens.
Average Restaurant Insurance Cost Per Month
Cost Breakdown
Typical insurance for restaurants will differ with certain factors such as where the restaurant is located, number of people the restaurant can host, and the types of food served.
Check out the table below for the average commercial restaurant insurance per month.
| Insurance Type | Average Monthly Cost |
| Business Owner’s Policy (BOP) | $251 |
| General Liability Insurance | $80 |
| Liquor Liability Insurance | $45 |
| Total Average Monthly Cost | $180 |
| Annual Cost Range | $900 – $10,000 |
Typically Restaurant owners pays between $900 and $10,000 annually, with an average monthly restaurant insurance cost of around $180.
How to Get Cheap Restaurant Insurance Quotes
It is important to know how to get cheap restaurant business insurance quotes in order to get the coverage you need for a fair price. By paying attention to these factors, you are likely to secure affordable restaurant insurance covers:
- Check various websites: Conduct thorough comparisons and get rates from as many insurers as possible.
- Double up Coverages: Think about getting a Business Owner’s Policy (BOP) that provides several coverages for a lower premium than the cost of getting each separately.
- Identify Coverage Limits: Consider evaluating your exposures and only purchase necessary coverages so that you don’t get overcharged.
Restaurant Liability Insurance Cost
The average restaurant general liability insurance cost is $80 approximately for each month, On the other hand, comprehensive policies for restaurants cost $300-$10,000 yearly depending on the specifics of the business being stated.
There are several factors which may determine the prices of restaurant liability insurance:
- Place of Business: Restaurants situated within the so-called ‘hot spots’ would surely pay a premium due to the risks associated with those areas.
- Claim history: it ensures that firms that have a history of making a number of claims pay more because the underwriters consider them high risk.
- Coverage Limit: Greater coverage limit and related premiums are rather invulnerable. For example, a $2 million coverage limit in insurance may make the premiums for the policy greater than a one million limit.
Best Restaurant Insurance Companies
Next Insurance
Our choice for the best insurance for restaurants, Next Insurance provides small business-focused insurance services for different types of businesses. Customers can click on the website to get quotes and manage policies, and it only takes a few minutes to do this.
Pros:
- Website is Simple to Use: Users have access to the ability to get quotes, buy a policy, and manage their coverage all through the straightforward website.
- Good Prices: They are able to reduce the cost of insurance due to the increase in technology, allowing them to be among the cheapest in the industry.
- Round the Clock Assistance: Their customer support is fast and available anytime to sort out claims.
- Additional Benefits: They are able to issue additional policies are liquor liability, general liability, and give workers’ compensation coverage.
Cons:
Get the best restaurant insurance coverage starting from $12/mo now.
- Due to a lack of availability across the various states for Next Insurance, some policy options are not available to some businesses.
- Some customers seem to have complaints when looking to contact customer support if the assistance is needed quickly.
Ratings: 4.5/5
Simply Business
The purpose of the Simply Business platform is to help the restaurant owners fairly compare quotes online across a number of carriers in a bid to acquire competitively priced insurance cover of their needs.
Pros:
- Quote Comparison: This feature allows a user to compare a number of quotes that they have received from various insurers and thus enabling the user to settle for the best one.
- Transparent Pricing: Customers are able to view a simple structure of pricing and there is no more concealment of any extra charges.
- User-Friendly Quote Process: The online quote feature is efficient with feedback being delivered in less than 10 minutes.
Cons:
- Customer Service Limitations: There is no devoted assistive person; help can be found only in working hours.
- Not a carrier
Ratings: 3.7/5
Travelers
Generally, Travelers comes off as a major player in the game as it also has customized policies especially for the restaurant industry including liquor liability.
Pros:
- Policy Inclusion: The policies provided can be numerous given that their clientele includes businesses in the restaurant sector.
- History: Travelers has been around for a while now almost 2 centuries; thus, people trust not just the name but also the finances of the company.
- Support Team: There are plenty of resources available for restaurant owners including support to help them find out the options available for them under different covers.
Cons:
- Policy Options: The mix of policy options varies and/or to some customers may be cumbersome without administrator support.
Ratings: 4.3/5
The Hartford
The Hartford target customers with unique insurance products focused on exceptional customer service and risk management resources.
Pros:
- Flexible Policies: The restaurant proprietor can modify their business insurance requirements and undergo a coverage process.
- Great Customer Support: they are reputed to have quality service and support tools.
- Risk Management Resources: The tools that have been most useful were those that assisted in minimizing risk exposure and increasing safety measures.
Cons:
- Pricing Variability: The premiums are quite different across geographical locations and the type of business.
Ratings:4.5/5
FAQs Restaurant Insurance Costs
What insurance does a restaurant need?
Restaurants usually need several types of insurance coverage, such as general liability insurance, property damage insurance, food contamination and spoilage insurance, etc. You should work with a reliable insurance provider to determine the insurance required by your restaurant so that you can enjoy full protection.
How much is insurance for a small restaurant?
Although small restaurants tend to spend less on insurance than larger ones, it’s essential to know the specific protection needs of your business before making a statement. The average insurance cost for a small restaurant runs between $1,000 and $5,000 per year.
Protect Your Recipe for Success
Every business is unique, and that’s why getting the perfect coverage for your business requires working with a professional and experienced insurance company. The right insurance provider will help you analyse your business needs and provide the best coverage for your business type and size.
As a result, you can protect your business, equipment, and even the customers patronising your brand without breaking a sweat.
Barter Insurance provides you reliable insurance quote options so you can enjoy peace while running your restaurant business.
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