Quick Answer: Restaurant insurance typically costs $5,000-$15,000/year for small to mid-size restaurants, with costs varying significantly by restaurant type, seating capacity, and alcohol service. Both Hartford and Chubb offer comprehensive restaurant insurance, but Hartford provides better value for independent restaurants and small chains under $3M revenue, while Chubb excels for upscale dining, multi-location groups, and restaurants requiring liquor liability limits above $2M.

Running a restaurant involves substantial risks—from foodborne illness and customer injuries to fires, theft, and employment disputes. Comprehensive restaurant insurance protects your business, personal assets, and livelihood from these exposures.

This guide covers everything restaurant owners need to know about insurance in 2026, including essential coverage types, real claim examples from actual restaurants, detailed cost breakdowns by restaurant type and revenue, and how Hartford and Chubb compare for restaurant insurance.

What is Restaurant Insurance?

Restaurant insurance is a specialized insurance program designed specifically for food service establishments. It addresses the unique risks restaurants face, from foodborne illness claims and kitchen fires to liquor liability and employment issues.

Unlike general business insurance, restaurant insurance accounts for the specific exposures in food service, including food contamination, alcohol-related incidents, equipment breakdown, and high employee turnover.

Who Needs Restaurant Insurance?

Full-Service Restaurants - Fine dining, casual dining, family restaurants
Quick-Service Restaurants (QSR) - Fast food and fast-casual concepts
Bars and Taverns - Establishments primarily serving alcohol
Food Trucks - Mobile food service operations
Catering Companies - Off-premise food service
Coffee Shops and Cafes - Beverage-focused establishments
Bakeries - Retail bakeries and wholesale operations
Ghost Kitchens - Delivery-only restaurant operations

Most commercial leases require proof of restaurant insurance. Lenders mandate coverage for business loans. Third-party delivery platforms often require specific insurance certificates.

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Essential Coverage Types for Restaurants

A comprehensive restaurant insurance program includes seven core coverages:

1. General Liability Insurance

General liability is the foundation of restaurant insurance. It protects you from third-party bodily injury and property damage claims.

What General Liability Insurance Covers:

Slip and Fall Accidents - Customers injuring themselves on wet floors, uneven surfaces, or debris
Food Poisoning - Claims of foodborne illness from contaminated or improperly prepared food
Foreign Objects in Food - Injuries from glass, metal, or other objects in meals
Customer Burns - Hot beverage spills, contact with hot plates or surfaces
Allergic Reactions - Claims related to undisclosed allergens in food
Customer Property Damage - Spills on clothing, damaged phones or laptops
Parking Lot Accidents - Injuries occurring in your parking area
Legal Defense Costs - Attorney fees and court costs

Real Claim Example 1: Foodborne Illness Outbreak

Scenario: A casual dining restaurant served undercooked chicken to 23 customers during a busy Saturday evening shift. Eighteen customers developed salmonella poisoning, with three requiring hospitalization. Health department investigation found improper food handling procedures.

Customer Claims: Multiple customers filed claims totaling $425,000 for medical expenses, lost wages, and pain and suffering. The health department issued fines of $15,000.

Resolution: General liability coverage paid $285,000 in settlements across all claimants, plus $68,000 in legal defense costs. The health department fines were not covered (regulatory penalties are typically excluded).

Total Claim Cost: $353,000

Real Claim Example 2: Slip and Fall Injury

Scenario: A customer slipped on a wet floor near the restroom entrance and fractured her hip. The floor had been mopped 10 minutes earlier, and while a "wet floor" sign was present, it was positioned poorly and not visible from the customer's approach angle.

Customer Claim: The customer sued for $180,000, including $75,000 in medical expenses (hip surgery and rehabilitation), $35,000 in lost wages, and $70,000 for pain and suffering.

Resolution: General liability coverage negotiated a settlement of $125,000 plus $32,000 in legal defense costs.

Total Claim Cost: $157,000

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2. Liquor Liability Insurance

Liquor liability (also called dram shop insurance) is essential for any restaurant serving alcohol. It protects you from claims related to serving alcohol to visibly intoxicated persons or minors.

What Liquor Liability Insurance Covers:

DUI Accidents - Claims when patrons cause accidents after leaving your establishment
Assaults and Fights - Injuries caused by intoxicated patrons
Property Damage - Damage caused by drunk customers
Dramshop Law Violations - State-specific alcohol service liability
Legal Defense Costs - Defense against alcohol-related claims

Real Claim Example 3: DUI Accident

Scenario: A bartender at an upscale restaurant continued serving alcohol to a visibly intoxicated customer who had consumed 8 drinks over 3 hours. The customer left the restaurant, drove 2 miles, and caused a serious accident injuring two people in another vehicle.

Claim: The injured parties sued the restaurant for $1.2M under state dram shop laws, claiming the restaurant negligently over-served the intoxicated patron.

Resolution: Liquor liability coverage paid $850,000 in settlement plus $125,000 in legal defense costs.

Total Claim Cost: $975,000

3. Property Insurance

Property insurance protects your physical business assets and equipment:

What Property Insurance Covers:

Kitchen Equipment - Stoves, ovens, refrigerators, freezers, dishwashers
Furniture and Fixtures - Tables, chairs, booths, decor
Inventory - Food and beverage inventory
Point-of-Sale Systems - POS hardware and equipment
Building Improvements - Leasehold improvements you've made
Business Interruption - Lost income if you must close due to covered loss
Outdoor Equipment - Patio furniture, signage, outdoor cooking equipment

Common perils covered include fire, theft, vandalism, and weather damage (depending on location).

Real Claim Example 4: Kitchen Fire

Scenario: A fire started in the kitchen exhaust system due to grease buildup in the hood and ductwork. The fire caused $280,000 in damage to kitchen equipment, dining room smoke damage, and structural repairs. The restaurant closed for 8 weeks during repairs.

Business Impact: Lost revenue of approximately $240,000 during closure, plus employee payroll costs to retain key staff.

Resolution: Property insurance paid:

$280,000 for equipment and structural repairs
$240,000 in business interruption (lost revenue)
$35,000 for ongoing payroll expenses
$12,000 for temporary location equipment rental

Total Claim Cost: $567,000

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4. Workers Compensation Insurance

Workers comp is required in most states if you have employees. Restaurants have high workers comp costs due to injury frequency.

Common restaurant injuries include:

Burns from cooking equipment or hot liquids
Cuts from knives and kitchen equipment
Slips and falls in kitchens and storage areas
Back injuries from lifting heavy items
Repetitive motion injuries

5. Employment Practices Liability Insurance (EPLI)

EPLI protects your restaurant from employment-related claims:

Wrongful termination
Discrimination and harassment
Wage and hour disputes
Retaliation claims
Hostile work environment

Restaurants face particular EPLI risks due to high turnover, tipped employees, and diverse workforce demographics.

6. Cyber Liability Insurance

Even small restaurants need cyber coverage for:

Payment card data breaches (PCI compliance)
Customer information theft
POS system ransomware attacks
Email phishing and social engineering
Business interruption from system outages

7. Commercial Auto Insurance

If you operate delivery vehicles, company cars, or catering trucks, you need commercial auto insurance covering:

Liability for accidents
Physical damage to vehicles
Medical payments
Uninsured/underinsured motorist coverage

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Restaurant Insurance Cost Breakdown

Restaurant insurance costs vary significantly based on restaurant type, size, revenue, and whether you serve alcohol. Here's a detailed breakdown:

Restaurant Type	Annual Revenue	Seating	Annual Premium Range
Coffee Shop (no alcohol)	$200K - $500K	15-30 seats	$3,000 - $5,000
Quick Service (no alcohol)	$500K - $1M	30-50 seats	$4,500 - $7,500
Casual Dining (beer/wine only)	$800K - $2M	50-100 seats	$7,000 - $12,000
Full-Service (full liquor)	$1M - $3M	75-150 seats	$10,000 - $18,000
Fine Dining (full liquor)	$1.5M - $4M	60-120 seats	$12,000 - $22,000
Bar/Tavern (primarily liquor)	$600K - $1.5M	40-80 seats	$15,000 - $30,000

Cost Breakdown by Coverage Type

For a typical $1.5M revenue casual dining restaurant with beer/wine service:

Coverage Type	Typical Limit	Annual Cost
General Liability	$1M / $2M	$2,500 - $4,000
Liquor Liability	$1M / $2M	$1,500 - $3,500
Property & Business Interruption	$300K-$500K	$2,000 - $4,000
Workers Compensation	Statutory	$4,000 - $8,000
EPLI	$1M	$1,200 - $2,500
Cyber Liability	$500K	$800 - $1,500
TOTAL		$12,000 - $23,500

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Hartford vs. Chubb for Restaurant Insurance

Both Hartford and Chubb offer specialized restaurant insurance programs, but they target different market segments.

Hartford for Restaurants

Hartford's restaurant insurance program serves independent restaurants, small chains, and food service operations up to approximately $5M in revenue.

Hartford Strengths:

Competitive pricing for independent restaurants
Flexible payment plans (monthly, quarterly, annual)
Fast online quoting and binding
Package policy bundling (GL + Property + Liquor Liability)
Good claims service with restaurant-specialized adjusters
Risk management resources and food safety training
Strong coverage for casual dining and QSR concepts

Typical Hartford Coverage:

General Liability: $1M per occurrence / $2M aggregate
Liquor Liability: $1M per occurrence / $2M aggregate
Property: Up to $1M
Business Interruption: Up to 12 months coverage
Equipment Breakdown: Included or available

Best For: Independent restaurants, small chains (2-5 locations), casual dining, quick service, coffee shops, bakeries, restaurants with revenue under $3M

Chubb for Restaurants

Chubb specializes in upscale restaurants, multi-location groups, and establishments requiring higher limits or sophisticated coverage.

Chubb Strengths:

Higher policy limits ($5M+ for liquor liability)
Superior coverage for fine dining and upscale concepts
Excellent reputation and crisis management services
Dedicated account management for restaurant groups
More flexible policy terms and endorsements
Strong international coverage for global restaurant brands
Premium claims service with immediate response

Typical Chubb Coverage:

General Liability: $2M per occurrence / $5M aggregate
Liquor Liability: $2M-$5M per occurrence / $5M-$10M aggregate
Property: Up to $5M+
Business Interruption: Up to 24 months coverage
Contingent Business Interruption: Available for supply chain issues

Best For: Fine dining restaurants, upscale concepts, multi-location groups (10+ locations), restaurants with revenue over $3M, establishments with high-value wine collections, celebrity chef restaurants

Side-by-Side Comparison

Feature	Hartford	Chubb
Target Market	Independent & small chains	Upscale & multi-location groups
Liquor Liability Limits	Up to $2M / $2M	Up to $5M / $10M
Pricing	More competitive	Premium pricing
Binding Speed	24-48 hours	3-7 days
Online Quoting	Yes	Through broker only
Payment Plans	Monthly available	Quarterly/annual
Claims Service	Excellent	Outstanding

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Real Claim Example 5: Employee Theft

Scenario: A restaurant manager systematically stole $45,000 over 14 months by processing fake refunds, voiding legitimate transactions, and pocketing cash. The theft was discovered during a routine audit.

Business Impact: Lost revenue of $45,000, plus costs of forensic accounting ($8,000), legal fees to prosecute ($12,000), and replacement manager recruitment and training.

Resolution: Commercial crime coverage (included in some property policies or available as endorsement) paid $45,000 for the direct theft. Legal and investigation costs were not fully covered.

Total Claim Cost: $45,000 covered, $20,000 out of pocket

How to Choose the Right Restaurant Insurance

Step 1: Assess Your Restaurant's Risk Profile

Key factors affecting coverage needs:

Restaurant type and concept
Annual revenue and seating capacity
Alcohol service (beer/wine vs. full liquor)
Operating hours (late-night increases risk)
Location (urban vs. suburban, crime rates)
Building condition and fire protection
Years in operation and claims history
Number of employees

Step 2: Determine Appropriate Coverage Limits

Recommended minimums:

General Liability: $1M per occurrence / $2M aggregate minimum
Liquor Liability: $1M per occurrence / $2M aggregate (beer/wine), $2M-$3M (full liquor)
Property: Replace all equipment, inventory, and improvements
Business Interruption: 6-12 months of gross profit
Workers Comp: Statutory requirements by state
EPLI: $1M (5+ employees), $2M (20+ employees)

Step 3: Compare Hartford vs. Chubb Based on Your Concept

Choose Hartford if:

You're an independent restaurant or small chain
Your revenue is under $3M
You operate casual dining, QSR, or cafe concepts
You want competitive pricing and monthly payments
You need quick online quotes and binding

Choose Chubb if:

You operate fine dining or upscale concepts
Your revenue exceeds $3M
You have multiple locations (10+)
You need liquor liability above $2M
You have a high-value wine or spirits collection
You want premium crisis management services

Step 4: Bundle Coverage for Savings

Most restaurants save 10%-20% by bundling policies:

Business Owner's Policy (BOP) = GL + Property
Add liquor liability to BOP for package discount
Bundle EPLI with BOP for additional savings
Add cyber coverage to the package

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Frequently Asked Questions

Q: How much does liquor liability insurance cost for restaurants?

A: Liquor liability typically costs $1,500-$5,000/year for beer and wine service, and $3,000-$10,000+ for full liquor service. Bars and taverns pay significantly more ($10,000-$30,000) due to higher alcohol sales percentages.

Q: Is restaurant insurance required by law?

A: Workers compensation is required in most states if you have employees. General liability isn't legally required but is almost always required by your commercial lease and lender. Liquor liability is strongly recommended (sometimes required by state laws) if you serve alcohol.

Q: What's the difference between food poisoning and foodborne illness coverage?

A: Both are covered under general liability. Food poisoning refers to illness from bacterial contamination (salmonella, E. coli). Foodborne illness is broader and includes viruses (norovirus), parasites, and toxins. Both are covered under standard GL policies.

Q: Does restaurant insurance cover equipment breakdown?

A: Equipment breakdown (refrigeration failure, HVAC breakdown, electrical damage) is typically available as an endorsement to property insurance or included in some BOP policies. It's essential coverage for restaurants due to reliance on refrigeration and cooking equipment.

Q: How does business interruption insurance work for restaurants?

A: Business interruption (BI) coverage pays for lost income and continuing expenses if you must close due to a covered property loss (fire, equipment failure, etc.). BI typically covers 6-12 months and is based on your financial records.

Q: Are third-party delivery drivers covered by my insurance?

A: No. Drivers working for DoorDash, Uber Eats, etc. are covered by the delivery platform's insurance. You're only responsible for injuries or issues that occur before food leaves your premises.

Q: Does general liability cover employee injuries?

A: No. Employee injuries are covered by workers compensation, not general liability. GL only covers third-party injuries (customers, vendors, delivery drivers).

Q: What's not covered by restaurant insurance?

A: Common exclusions include: intentional damage, illegal activities, floods (requires separate flood insurance), earthquakes (separate coverage), employee dishonesty (unless you have crime coverage), and pollution (specialty coverage needed).

Q: Can I get coverage if I've had previous claims?

A: Yes, but premiums increase. One slip-and-fall might add 10%-20% to your premium. Serious claims (major foodborne illness outbreak, liquor liability claim over $100K) can increase premiums by 50%+ or make coverage difficult to obtain.

Q: How do food trucks differ from traditional restaurants for insurance?

A: Food trucks need commercial auto insurance in addition to restaurant coverages. They typically have lower general liability premiums (smaller customer capacity) but higher auto liability costs. Property coverage is lower (less equipment) but breakdown coverage is critical.

Conclusion

Restaurant insurance is essential protection for food service businesses of all types and sizes. With the average foodborne illness claim costing $200,000-$400,000, slip-and-fall claims averaging $50,000-$100,000, and kitchen fires often exceeding $500,000, comprehensive coverage is critical.

Hartford provides excellent coverage and competitive pricing for independent restaurants, small chains, and concepts with revenue under $3M. Chubb excels for upscale dining, large multi-location groups, and any restaurant requiring higher limits or sophisticated coverage.

The right insurance partner depends on your restaurant type, revenue, alcohol service, and risk profile. Work with a broker who specializes in restaurant insurance and can access both Hartford and Chubb programs to ensure you get optimal protection at the best value.

Don't wait for a claim—protect your restaurant business today with comprehensive insurance from a carrier that understands the unique risks of food service operations.