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Restaurant Insurance: What Coverages Does Your Restaurant Need?

Table of Contents

man standing in front of open restaurant sign
In the United States, the restaurant industry is projected to grow at 5% over the next several years. With a positive industry outlook and a demand from consumers for new restaurant experiences, over one thousand independent restaurants open each year. Without a comprehensive restaurant insurance plan, those restaurant business owners are exposed to a myriad of lawsuits and other financial loss.


  • General Liability Insurance — General liability insurance protects you against third-party claims such as property damage, bodily injury, or personal injury. For example, if someone were to slip and fall on a wet floor in your restaurant.
  • Product Liability Insurance — Product liability insurance covers you if your food products were to make someone ill. For example, you sell your signature BBQ sauce in bottles at the front counter and a customer became ill from consuming your BBQ sauce.
  • Inventory Insurance — Inventory insurance protects you against loss such as food spoilage. For example, let’s say you lose electricity to your restaurant and your refrigerated products spoil overnight.
  • Liquor Liability Insurance — If your restaurant manufactures, distributes, sells, or serves alcoholic beverages, you could be liable if you serve alcohol to a patron who then injures someone or causes property damage. For example, one of your servers provides alcohol to an intoxicated person who then drives and causes an accident.
  • Commercial Auto Insurance — If you use a vehicle for your business operations, it may not be covered under your personal automobile insurance. Commercial auto insurance acts much like a personal auto policy but also includes coverages specific to business operations.


Each restaurant is unique and your insurance needs may vary according to what type of restaurant you operate and what services you provide. This is why Insurance Canopy has a team of insurance specialists who understand the food industry and can develop an insurance portfolio from the products listed above that will keep you protected from financial loss. We are well-versed in local and state regulations pertaining to restaurants and can analyze your business to make sure you have the correct amount of insurance needed without being over-insured. To purchase restaurant insurance, simply contact our representatives by emailing us at or by calling us at 844.520.6993. *All insurance policies have conditions, limitations and exclusions. Please refer to the policy for exact coverages.

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