A Complete Guide to Restaurant Insurance

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As a restaurant owner, you have a lot on your plate - no pun intended. When a customer slips and falls, a stove catches fire, or a power outage causes all your food to spoil, insurance helps protect your business from financial loss.

From mom-and-pop cafes to fine dining restaurants - and even food trucks - we're proud to call many of the culinary talents in South Central Pennsylvania and Maryland clients.

At Keller-Brown Insurance Services, we work closely with restaurant owners to create a coverage package that meets their needs.

This guide walks you through essential policies for restaurants including commercial property insurance, liquor liability, and more.

What kind of insurance does a restaurant need?

Like many of the restaurants in our community, we're a family-owned business. That's why we're committed to giving helpful advice to our customers.

Our agents recommend certain restaurant insurance policies that are essential, along with some additional ones for comprehensive coverage:

General liability insurance: Provides liability coverage for accidents or incidents arising from your restaurant operations.

A customer could slip and get injured from just one spilled drink. As a restaurant owner, you're liable for incidents like this that take place in your dining room.

Commercial property insurance: Helps repair or replace equipment and the building itself when damaged or lost because of unforeseen circumstances.

From industrial stoves to custom-made lighting fixtures, your building and the systems outfitted to make it run can be expensive. This coverage helps protect your building and anything permanently attached to it. If burglary or damage causes the loss of any of these necessities, a commercial property policy can help replace them.

Business contents insurance: safeguards the physical assets of your restaurant - from ovens to food and beverage inventory.

To put it simply, this covers the stuff inside your building, including physical assets such as tables, chairs, and food and beverage inventory. Replacing restaurant equipment or losing your food and beverage inventory could be extremely costly. Business contents insurance offers essential protection for the valuable assets inside your restaurant. This coverage can help replace or repair kitchen appliances, dining room furniture, and restaurant inventory.

Insurance Agent's Tip: Policies like business contents insurance are increasingly important for restaurants. Extreme weather events are on the rise. All it takes is one powerful thunderstorm to knock out power, causing your food to spoil. Investing in business contents insurance can protect against these unexpected expenses.

Business income insurance: Helps restaurants survive and recover from unexpected disruptions.

Restaurants are at risk for water damage, fire, or other scenarios that could force you to close temporarily. Business income coverage helps you pay bills and staff when your restaurant is closed for repairs due to a covered claim.

Margins are thin in the restaurant industry. With extreme weather conditions growing more common, this coverage is a vital tool to protect your business.

Workers' compensation insurance: Protects both you and your employees if someone gets injured in the workplace.

Sharp knives, hot stoves, and slippery floors are the norm in kitchens. Workers' compensation enables you to pay for injuries your team members may sustain while on the job. Plus, it doesn't just pay for their medical care. If your employee can't work due to the injury, workers' compensation can cover their wages.

Equipment breakdown insurance: Safeguards costly restaurant equipment damaged due to power surges, electrical shorts, mechanical failure, or similar internal circumstances.

Unexpected breakdowns of your POS system or refrigerators could leave your business out of commission. Plus, a broken refrigerator often results in spoiled food. This coverage helps cover losses and repairs related to broken equipment.

Liquor liability insurance: Protects your restaurant from financial and legal liability due to alcohol-related incidents.

Accidents can happen after customers leave your business. If you sell, serve, furnish, distribute, or manufacture alcohol, you could be held liable both financially and legally.

Liquor liability insurance pays for legal fees, medical bills, and other costs from damages caused by your customers. If you're involved with alcohol, a general liability policy does not cover risks related to liquor. The only way to get coverage is through liquor liability insurance.

Commercial auto insurance: Safeguards delivery vehicles, company cars, and even employee's personal vehicles (when used for work tasks).

If you have a company vehicle or someone who goes to the store for supplies, you need commercial auto insurance. This coverage protects you if you or your employees are involved in a car accident while on the clock.

Get customized insurance coverage for your restaurant.

Contact Keller-Brown Insurance Services to review your coverage.

No matter if you're new or experienced in the restaurant industry, it's important to know your current business position. Changes in your business and the economy impact your coverage needs.

Ensure you know the value of your equipment, the size of your building, and other important information about your restaurant. We learn about your business to give you a quote that meets your coverage needs.

Get a free restaurant insurance quote. As an independent insurance agent, we work with a variety of carriers to ensure you get coverage that matches your needs. Our agents will work with you to understand your business and your budget. Then, we'll provide you with a list of options from several top-rated carriers.

You work hard to build your business. Make sure you cover it with the best insurance policy for your needs.

Start your free restaurant insurance quote now.

Or contact us to start a conversation.