Question 1

What insurance does a restaurant need?

Accepted Answer

Restaurants need: General Liability (slip and fall, food-borne illness claims), Workers Compensation (required once you have employees), Commercial Property (kitchen equipment, inventory), Liquor Liability (if you serve alcohol — standard GL excludes alcohol-related claims), and often a Business Owners Policy (BOP) that bundles GL and property. Food trucks also need commercial auto.

Question 2

Does a restaurant need liquor liability insurance?

Accepted Answer

If you serve alcohol, yes — absolutely. Standard general liability policies explicitly exclude claims involving alcohol (a 'liquor liability exclusion'). If a customer gets drunk at your restaurant, drives home, and injures someone, you could be sued. Liquor liability coverage is not optional for establishments that serve alcohol.

Question 3

How much does restaurant insurance cost?

Accepted Answer

A small restaurant (under 10 employees, under $500k annual revenue) typically pays $3,000-$8,000 per year for a complete insurance package including GL, BOP, WC, and liquor liability. A food truck with one employee might pay $2,000-$4,000 per year. Bars and nightclubs with high alcohol sales pay significantly more.

Question 4

Does a food truck need different insurance than a restaurant?

Accepted Answer

Yes. Food trucks need commercial auto insurance in addition to GL, since the truck itself is also the primary business asset. They also need mobile equipment coverage and should check that their GL policy covers operations from a vehicle. Some carriers write food truck policies specifically — ERGO NEXT covers food trucks and food service businesses.

Question 5

What is food contamination insurance?

Accepted Answer

Food contamination insurance (also called food spoilage and contamination coverage) covers the cost of disposing of contaminated food, lost income if you have to close due to a contamination incident, and in some policies, the cost of a public relations response. It is typically an endorsement added to a restaurant BOP or GL policy.

Coverage	Priority	Typical Annual Cost
General Liability (GL)	🔴 Essential	$1,200–$3,500
Workers' Compensation	🔴 Required (with employees)	$2,000–$6,000
Liquor Liability	🔴 Essential (if serving alcohol)	$500–$2,000
Commercial Property / BOP	🟡 Highly Recommended	$1,000–$3,000
Commercial Auto (food trucks)	🔴 Required	$1,500–$3,500

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Slip & Fall

Liquor Liability

Food-Borne Illness

Employee Injuries

Equipment Breakdown

Fire & Property Damage

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