What business insurance does a full service restaurant need?
Protect your business and meet your legal requirements
Updated 10/28/26
Your restaurant brings people together over great food and drinks. Unfortunately, one surprise expense – a grease fire in the kitchen, a guest who slips on a spilled drink or a server injured carrying a heavy tray – can put your whole business at risk. We believe in your business and want you to have affordable insurance that meets legal requirements and protects your property, team and income. This guide breaks down:
- The most recommended coverages for restaurants
- Coverages that may be legally required
- Some typical costs of restaurant insurance
- How to save with fast quotes from top-rated insurance carriers
SHORT SUMMARY (because we know you're busy serving up something amazing!)
- Full-service restaurants face guest injury, fire, food-related and employee injury risks that require customized coverage.
- Most restaurants start with a Business Owner's Policy, then add workers' compensation and liquor liability.
- A Business Owner's Policy for restaurants can save you money by bundling general liability, property insurance and business interruption insurance.
- General liability insurance covers injuries and damages caused to guests and others in your restaurant, as well as advertising-related claims.
- Property insurance helps repair or replace your dining room, kitchen equipment, furniture and inventory.
- Business interruption insurance replaces lost income if covered property damage forces you to temporarily close.
- Workers' compensation is required in nearly every state if you have employees.
- Liquor liability protects you against alcohol-related claims, such as serving an intoxicated person who later causes harm.
- A commercial umbrella, cyber insurance and commercial auto offer added protection depending on how you operate.
- Working with Mylo can help you find the right coverage at the best value.
The 3 coverages most full service restaurants need
Here are three essential coverages every restaurant owner should consider to stay protected and profitable:
1. Business Owner's Policy for restaurants
A business owner's policy (BOP) is a smart starting point for a restaurant. It bundles key coverages into one affordable package. Your BOP typically includes:
GENERAL LIABILITY FOR RESTAURANT covers legal and medical costs if a customer or visitor is injured – or their property is damaged – while in your restaurant. It also protects you from advertising-related claims. Examples:
- A diner has an allergic reaction by eating or touching the wrong food
- A server accidentally spills wine on a pricey designer dress
- A competitor claims you stole their logo or copyrighted slogan
RESTAURANT PROPERTY INSURANCE helps repair or replace your space and equipment if disaster strikes – like fire, theft, or vandalism. Examples:
- A grease fire causes major damage in your space
- A storm floods your kitchen and cause serious food spoilage
- The copper in your outdoor AC unit is stripped out by someone hoping to sell it (yes, this actually happens)
BUSINESS INTERRUPTION INSURANCE replaces lost income if you need to temporarily close your restaurant due to covered property damage.
Based on actual Mylo data, a Business Owner's Policy for a full-service restaurant typically costs $243–$556 a month. Not every restaurant qualifies for a BOP. If yours doesn't, standalone general liability typically costs $112–$344 a month.
2. Workers' compensation for restaurants (required in most states)
Nearly every state requires workers' compensation if you have employees, whether they're full-time or part-time. The exact rules vary by state. This coverage provides medical care and replaces lost wages for staff injuries and shields you from most employee lawsuits. Examples:
A server spills a drink and then slips and falls on it
- A kitchen worker has a mishap with a knife or industrial mixer
- An employee has a back injury from lifting heavy supplies
Based on actual Mylo data, workers' compensation for a full-service restaurant typically costs $74–$180 a month.
3. Liquor liability for restaurants (often required if you serve alcohol)
General liability usually excludes alchohol-related claims. If you serve beer, wine or cocktails, liquor liability covers legal costs and damages if an intoxicated guest injures someone or damages property. Many states and local licensing boards require it to get or keep a liquor license. Examples:
- A customer starts a fight and injures someone after one drink too many
- An intoxicated driver you served causes a car accident after leaving
Ready to get your free quote now and see how much you can save on these and other coverages you may need?
Depending on your restaurant, you may also want:
1. Commercial umbrella insurance for restaurants
Think of this as insurance for your insurance! A commercial umbrella policy provides extra protection when other key policies such as your general liability reach their limits – helpful when one serious guest injury could lead to a very large claim.
Based on actual Mylo data, a commercial umbrella policy typically costs $33–$107 a month.
2. Cyber insurance for restaurants
If you accept card payments, take online reservations or run online ordering, you're at risk for cyberattacks. Cyber insurance helps you recover from data breaches, pay regulatory fines and manage PR fallout. Examples:
Hackers install malware on your point-of-sale system and steal guest card data
A phishing email exposes employee payroll info
Based on actual Mylo data, cyber insurance typically costs $46–$129 a month.
3. Commercial auto for restaurants
If you offer delivery or catering, or use vehicles to pick up supplies, commercial auto insurance covers damages or injuries your vehicles cause.
- Helps pay for damages or injuries your vehicles cause to others or their property
- Can also pay for physical damage to your vehicles (optional)
These coverages may be legally required:
Requirements depend on your state and local licensing, so make sure you have the right coverage to keep your doors open.
1. Workers' compensation (required in most states )
Nearly every state requires workers' compensation if you have employees, providing medical care and lost wages for injured staff. Some states set a minimum number of employees.
Based on actual Mylo data, workers' compensation for a full-service restaurant typically costs $74–$180 a month.
2. Liquor liability (often required if you serve alcohol)
Many states and local licensing boards require liquor liability insurance before they'll issue or renew a liquor license. Check your state's rules and your license conditions. And requirement or not, it's a smart idea to carry this.
3. Commercial auto (required if you use vehicles for business)
If you use company-owned or personal vehicles for business, such as delivery or catering, your state requires auto liability coverage for damages or injuries your vehicles cause.
Based on actual Mylo data, commercial auto for a full-service restaurant typically costs $148–$430 a month.
Mylo makes it easy to make a smart decision
Your amazing company deserves protection that keeps up with your business. Mylo has been innovating insurance for 10+ years and provided 100,000 policies to 75,000+ small business owners. Because we don't sell our own insurance, we can give you an objective recommendation and find you the best value from top carriers – at no cost to you.
In minutes Mylo will:
- Recommend the right coverage for your restaurant
- Compare quotes from top-rated insurance carriers
- Find you the best combination of coverage and price
- Keep you feeling confident about growing your business!