5 Best Insurance Companies for Restaurants

Operating a restaurant involves facing inherent risks. For instance, a server might unintentionally spill coffee on a customer’s laptop, or a kitchen fire could abruptly halt operations.

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To avoid personally covering the expenses of such mishaps, restaurant insurance proves beneficial. It typically encompasses a Business Owner’s Policy (BOP), comprising commercial property coverage, general liability, and frequently, business income coverage, also known as business interruption insurance.

Moreover, owners may require workers’ compensation, commercial auto coverage, and additional endorsements such as liquor liability, equipment breakdown coverage, and food contamination insurance.

In this blog, we will explore the five best restaurant insurance companies.

Important Restaurant Insurance Policies

Type of Insurance What It Covers
General Liability Property damage, physical injury, and reputational harm claims brought by nonemployees
Commercial Property Damage to business-owned property
Liquor Liability Insurance Property damage or injuries caused by an overserved patron
Workers’ Compensation Medical bills and lost wages for injured employees
Commercial Auto Losses caused by auto accidents
Data Breach Costs associated with cybercrime and lost physical data


1. Next Insurance


1. Dedicated small business insurer.
2. Over 10,000 restaurants insured.
3. Instant certificates of insurance (COIs) creation.


1. Revenue cap of $5 million.
2. No restaurants larger than 7,500 square feet.
3. No 24/7 call center.

Standout Features

– Custom insurance packages for the food and beverage industry.
– Commercial app for policy and claims management.
– Instant COI creation and sharing with landlords or vendors.
– Liquor liability automatically included with general liability for restaurants.
– Financial stability: Founded in 2016, AM Best rating is A- (Excellent).

Next Insurance, a direct-to-consumer carrier, prioritizes integrating technology for enhanced policyholder services. Specializing in small businesses, it focuses on the food and beverage industry, insuring over 10,000 restaurants. Tailored packages include business owner’s policy (BOP), general liability, professional liability, and workers’ compensation.

In addition to its digital convenience, Next Insurance offers a resource center for starting restaurants, providing free resources such as tips, license permits, safety posters, and point-of-sale (POS) reviews.

However, it lacks a 24/7 claims line, requiring online or app claims filing. For emergency support, consider Travelers, the only provider here with a 24/7 claims and customer service line.

2. Nationwide

Nationwide is an insurance provider offering a diverse range of specialized products, with a primary focus on reliable foodservice insurance. Specializing in coverage for food and beverage businesses, Nationwide safeguards your restaurant, cafe, or coffee shop. The company extends various insurance products tailored for restaurant coverage.

Among its key offerings are services like commercial auto insurance, akin to worker’s compensation. Additionally, Nationwide provides coverage for property, equipment breakdown, sewer, drain, and employee dishonesty. Clients benefit from a comprehensive Business Owner Policy, encompassing commercial property, business income, general liability, business property, and equipment breakdown protection.

3. The Hartford

The Hartford is a prominent player in the realm of business insurance, excelling in providing top-tier liability and property coverages tailored for various businesses. The company extends its expertise to include home insurance coverages for personal property. The Hartford stands out by seamlessly integrating general liability and professional liability policies.

For restaurant businesses, The Hartford offers a range of insurance options, allowing customers to choose from customized selections for a personalized quote. Streamlining the quoting process, The Hartford makes it effortlessly convenient to obtain a unique quote based on individual preferences. The company particularly recommends its Business Owners‘ Policy, a comprehensive coverage including general liability, commercial property, and business income. This policy serves as a robust safeguard for restaurants, effectively mitigating associated risks.

4. Food Liability Insurance Program

FLIP, an abbreviation for Food Liability Insurance Program, is a specialized initiative tailored for the food industry, specifically catering to food trucks, food carts, and food vendors. FLIP operates by offering customized coverage designed to meet the unique needs of businesses within the food sector.

Upon purchasing a policy, clients gain access to a variety of coverage options that can be selectively added to tailor the overall policy for their business. The process is swift, straightforward, and budget-friendly, with policies commencing at an annual rate of $299.

It’s important to note that FLIP functions as a platform for policy management but does not directly handle claims when they occur. In the event of a claim, individuals are required to directly engage with the insurance carrier for resolution. If a streamlined point of contact for both policy management and claims is preferred, alternatives like Next Insurance, which offers similar coverages, may be considered.

Cost & Coverage

FLIP’s policies start at $299 per year, allowing flexibility for clients to add coverage and adjust limits, with corresponding price adjustments. The policy acquisition process is efficient, taking approximately 10 minutes online, or individuals can opt to call and consult with available agents.

The policy itself includes a general liability coverage of $2 million aggregate and a product liability coverage of $2 million aggregate. Additionally, it encompasses $300,000 for damage to rented premises and provides inland marine/property coverage ranging between $5,000 to $10,000.

5. CoverWallet

The online digital brokerage, CoverWallet, stands out as an excellent choice for obtaining essential policies for your restaurant while also facilitating cost savings. CoverWallet collaborates with top-rated providers in the restaurant industry, including The Hartford, Chubb, and Liberty Mutual, offering the convenience of receiving multiple quotes simultaneously.

The quotes presented by CoverWallet detail coverage limits and associated costs, allowing for a comprehensive comparison to determine the most suitable option for your business. Acting as a broker, CoverWallet aids in policy management but does not directly handle any claims.

Cost & Coverage

Upon soliciting quotes from CoverWallet, four options were provided, with annual prices ranging from $2,545 to $6,385. Despite the varying costs, the coverages offered were relatively similar, if not nearly identical. Each quote pertained to a Business Owner’s Policy (BOP) with $1 million per occurrence, $2 million aggregate for general liability, and a minimum of $65,000 in commercial property coverage.

The most favorable combination of coverage and price was found in a BOP from Chubb, totaling $3,081 annually. This particular option excelled due to its $70,000 property coverage with a $500 deductible.

It’s noteworthy that none of the policies could be directly purchased online; the finalization of the process requires contacting and conversing with one of CoverWallet’s agents.


1. What does restaurant insurance typically cover?
Restaurant insurance typically covers general liability, property damage, workers’ compensation, and may include specific coverages like liquor liability and food contamination insurance.

2. Why is restaurant insurance necessary?
Restaurant insurance is necessary to protect against potential risks and liabilities, such as accidents, property damage, employee injuries, and legal claims, ensuring financial security for the business.

3. How much does restaurant insurance cost?
The cost of restaurant insurance varies based on factors like the size of the restaurant, coverage limits, location, and specific risks. On average, it can range from a few thousand to tens of thousands of dollars annually.

4. Are there specific insurance options for food trucks and mobile vendors?
Yes, there are specialized insurance options, such as food truck insurance or mobile vendor insurance, designed to address the unique risks associated with operating in a mobile setting. These policies may include coverage for mobile equipment and specific liabilities.


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