Restaurant Insurance Cost & Coverage Guide for 2026
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Restaurant Insurance
When you’re running a restaurant, the pace is nonstop — and with hot surfaces, slick floors, and a steady flow of customers and staff, a lot can go sideways. Restaurant insurance can help protect your business from a range of common risks so one mishap doesn’t spoil all your hard work.
This guide will break down the essential insurance coverages for restaurant owners, what they typically cost, and how you can get the right protection for your business. We’ve got you covered.
What is Restaurant Insurance?
Restaurant insurance is a suite of policies designed to help protect your business from the financial fallout of customer or employee injuries, property damage, business interruption, and lawsuits. Without the right coverage, you could be personally on the hook for legal fees, medical bills, repairs, or replacing damaged equipment and inventory.
How Much Does Restaurant Insurance Cost?
The cost of restaurant insurance varies and your final premium will depend on factors including your location, number of employees, the type of restaurant you own, the policies you buy, and your claims history.
Here’s a look at the median costs1 for the most common policies restaurant owners purchase.
Average Costs1
| Insurance Policy | Median Monthly Cost | Median Annual Cost |
|---|---|---|
| Workers’ compensation: | $101 | $1,212 |
| Business owner’s policy | $144 | $1,728 |
1Data from Simply Business customers specializing as “restaurant owners” who purchased at least one or a combination of BOP and workers’ compensation policies from July 1, 2025 to December 31, 2025. The median costs shown are for illustrative purposes only; actual premiums vary by state, coverage limits, and individual business risk.
What Insurance Does a Restaurant Typically Need?
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) bundles three key coverages — general liability, commercial property, and business interruption insurance — into one convenient package. It’s designed to help protect your business from a range of common risks without the hassle and expense of managing multiple policies.
Median Cost:
$144/month*
A small kitchen fire sets off the sprinklers, damaging equipment and inventory and forcing you to close for repairs. A BOP can help cover the damage and lost income while you’re shut down. Many owners choose BOP because it offers more protection than a stand alone general liability policy without costing much more.
Workers’ Comp
If you have employees, most states require you to carry workers’ compensation. This policy covers medical bills and lost wages for employees who get injured or become ill on the job.
Median Cost:
$101/month*
A server slips in the kitchen and injures their back. Workers’ comp can help cover treatment and wage replacement while they recover.
Frequently Asked Questions
As with most types of insurance, the cost of restaurant insurance will depend on a number of factors, such as:
- Your type of business
- The services you provide
- Your business location and square footage
- Where your business is located
- The number of employees you have
- Your estimated revenue, payroll, and sales
- And more
Location can influence pricing because it affects things like local repair costs, weather-related risks, and how common claims tend to be in that area. Your state can also impact costs through insurance rules and workers’ comp requirements.
While requirements vary by state, any business selling alcohol — even just beer and wine — faces significant risk. Standard general liability insurance typically excludes alcohol-related claims, so liquor liability insurance is essential to cover incidents like property damage or injuries caused by an intoxicated patron. And in most cases, your landlord or lender will require this coverage as a condition of your lease or loan.
In most states, workers’ comp is required if you have employees, even if it’s just one or two. Rules vary by state, so it’s worth confirming your specific requirement.
A few ways to keep strong protection while trimming costs include:
- Bundle smartly: A Business Owner’s Policy (BOP) can be more cost-effective than buying general liability and property insurance separately.
- Right-size your limits: Make sure your limits match your real exposure and budget.
- Reduce preventable claims: Slip-and-fall prevention, kitchen fire controls, staff training, and good maintenance can pay off over time.
- Keep your info current: Accurate payroll, sales, and equipment values help avoid overpaying.
- Compare options: We provide customized coverage recommendations and restaurant insurance quotes from top-rated small business insurers so you can see them side by side.
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*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
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