What business insurance does a Texas limited-service restaurant need?
Protect your business and meet your legal requirements
Updated 9/11/26
Your limited-service restaurant keeps hungry Texans fed and coming back for more. Unfortunately, one surprise expense (a customer slips near the counter or a kitchen fire shuts you down for a week) can put everything you're building at risk. We believe in your business and want you to have affordable insurance that protects your property, team and income. This guide breaks down:
- What Texas does and doesn't require
- The most recommended protections
- 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!)
Most restaurant owners start with a Business Owner's Policy, then add workers' compensation and commercial auto.
A Business Owner's Policy for restaurants saves you money by bundling general liability, property insurance and optional business interruption coverage.
General liability insurance covers customer injuries and property damage caused by your business, along with advertising-related claims.
Restaurant property insurance helps replace or repair your equipment, furnishings and inventory.
Texas does not require most private employers to carry workers' compensation, but it's strongly recommended.
Commercial auto is required in Texas if you own or use vehicles for delivery or catering.
Liquor liability insurance covers alcohol-related claims if you serve liquor
A commercial umbrella and cyber insurance 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 Texas limited-service restaurants need
Here are three essential coverages every limited service 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 limited-service restaurant. It bundles key coverages into one affordable package. Your BOP typically includes:
GENERAL LIABILITY FOR RESTAURANTS covers legal and medical costs if a customer or visitor is injured – or their property is damaged –while at your restaurant. It also protects you from advertising-related claims. Examples:
- A customer slips on a wet floor and breaks a wrist
- A guest gets sick and blames your food
- A competitor accuses you of copying their branding
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 limited-service restaurants in Texas typically costs $186–$393 a month.
2. Workers' compensation for restaurants (recommended in Texas)
Unlike most states, Texas does not require private employers to carry workers' compensation. Even so, it's one of the smartest protections you can get – it provides medical care and replaces lost wages for staff injuries and helps shield you from employee lawsuits. Examples:
- A cook is burned by a fryer or grill
- A team member slips on a greasy kitchen floor
- A cashier suffers a repetitive-strain injury
Based on actual Mylo data, workers' compensation for limited-service restaurants in Texas typically costs $46–$118 a month.
3. Commercial auto for restaurants (required in Texas if you use vehicles)
If you use company-owned or personal vehicles for delivery or catering, Texas requires you to cover them with commercial auto insurance.
- Helps pay for damages or injuries your vehicles cause to others or their property
- Can also pay for physical damage to your vehicles (optional)
Based on actual Mylo data, commercial auto in Texas typically costs $128–$377 a month.
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. Liquor liability insurance
If your restaurant serves beer or wine, this critical coverage protects you against alcohol-related claims –such as serving an intoxicated person who later causes harm. It's important to know that your general liability insurance usually excludes this.
2. 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 and commercial auto reach their limits – helpful for a busy restaurant with heavy foot traffic. **
Based on actual Mylo data, a commercial umbrella policy for limited-service restaurants in Texas typically costs $50–$158 a month.
3. Cyber insurance for restaurants
If you take orders online, run a loyalty app or store customer payment data, you're at risk for cyberattacks. Cyber insurance helps you recover from data breaches, pay regulatory fines and manage PR fallout. Examples:
- Hackers access your point-of-sale system and steal card data
- A phishing email exposes employee payroll info
Based on actual Mylo data, cyber insurance in Texas typically costs $66–$130 a month.
What's legally required in Texas (and what isn't)
Texas is unique – it's the only state that doesn't require most private employers to carry workers' compensation. Here's what to keep in mind:
1. Commercial auto (required in Texas if you use vehicles)
If you use company-owned or personal vehicles for delivery or catering, Texas requires commercial auto insurance to cover damages or injuries your vehicles cause.
Based on actual Mylo data, commercial auto in Texas typically costs $128–$377 a month.
2. Workers' compensation (optional but strongly recommended)
Texas doesn't require most private employers to carry workers' compensation – but going without it means you could pay out of pocket for employee injuries and lose important legal protections.
Based on actual Mylo data, workers' compensation for limited-service restaurants in Texas typically costs $46–$118 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 in Texas – 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 in Texas
- Keep you feeling confident about growing your business!