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The Cost of Restaurant Insurance

The Cost of Restaurant Insurance

Opening a new restaurant can be exciting yet intimidating, and making sure you have the right business insurance to cover your restaurant is crucial to running a successful business in the hospitality industry. The following are the different types of restaurant insurance you’ll need as part of your business insurance, along with their cost.


Business Owner’s Policy

​​​​​BOP offers a combination of General Liability Insurance and Property Insurance, ranging between average costs in annual premiums of $1,150 to $10,600. BOP can also include Business Interruption Insurance, by which you will be reimbursed for any income lost from shutting down of the restaurant in the event of rebuilding/repairing the restaurant after a covered property loss. 


Property Insurance

Such insurance will help to cover replacement/repairs of all restaurant property in situations of fire, theft, windstorms, or other events, including kitchen equipment, furniture, restaurant buildings, and other property owned. $1,000 to $2,250 in annual premiums is generally the cost of Property Insurance for restaurants.


General Liability Insurance

General Liability Insurance is crucial for the protection of your restaurant business against lawsuits that may arise from injury to employees, customers, or delivery people on restaurant property; lawsuits concerning third - party property damage, damaged reputations, advertising injuries, as well as foodborne illnesses. The cost of General Liability Insurance ranges between $500 and $6,100 in annual premiums.


Liquor Liability Insurance

Liquor Liability Insurance is crucial for establishments holding liquor licenses. Restaurants can be held responsible for serving alcohol to intoxicated customers who then end up damaging property, causing accidents, injuring people, or wreak havoc in other ways. With Liquor Liability Insurance at anywhere between $350 and $2,800 per year, you can protect your business from such lawsuits.


Workers’ Compensation Insurance

​Workers’ Compensation Insurance offers protection to employees from illnesses/accidents at the workplace and includes lost wages / medical expenses for any employee who is hurt while performing the job. Employer’s Liability Insurance frequently accompanies such policies to protect you from a lawsuit that may arise from Workers’ Compensation, by ensuring you pay bills required by law and damage expenses. Costs here vary dramatically between $620 and $9,800 annually, while fine dining restaurants have higher premiums. 


Employment Practices Liability Insurance

Employment Practices Liability Insurance helps to cover legal expenses, settlement costs, and lawyers’ fees relating to lawsuits arising from workplace harassment, inappropriate termination, or discrimination at the workplace and can range between $1,000 and $8,150 in annual premiums. 


Commercial Auto Insurance

Commercial Auto Insurance is crucial for restaurants operating their own vehicles for work purposes such as event catering, or deliveries and can offer protection in the case of medical, legal, and repair costs arising from car accidents. Such policies typically cost between $1,200 and $2,500 in annual premiums.

While these insurance quotes are typical estimates of the cost of restaurant insurance, policies may differ based on the location of the restaurant, its size, and many other factors related to the restaurant.



When shopping for Restaurant Insurance in Texas, the Thumann Agency is here to help you customize a plan that works for your business and your budget. From the family-owned bakery to the national franchise, we provide coverage for a large variety of restaurant types. 

We represent over 80 top-rated insurance companies that not only offer the best rates but also deliver a superior standard of protection. Contact us at 972.991.9100 or start your Restaurant Insurance quote now.