Articles & Whitepapers / Restaurants and Bars

What to know about restaurant risk management and insurance.

Article by

Josh Sklar · Product Marketing Lead

Oct 30, 2026

smiling woman behind bakery counter looking at digital tablet

This article was originally published on February 18, 2025.

If you own or operate a restaurant, you know that how well you manage daily risks plays a major role in your success. Effective restaurant risk management has many parts, but it starts with having the right financial protection.

While there are other steps to take to reduce restaurant risks, getting the right insurance is a critical first step. Even if your employees follow every best practice and training tip, they’re still human. Even the most careful employees make mistakes from time to time.

That’s why having a comprehensive policy from THREE is a lifesaver! Whether one of your team members suffers a deep cut while working in the kitchen or a storm damages your roof, your policy can pay the associated costs so you don’t have to dip into your savings or revenues. For restaurant owners and investors, having that financial protection is incredibly reassuring.

Let’s explore the topic of restaurant business risk management, including what coverages are in a THREE policy and five steps you can take to lower your risk.

Protect your entire restaurant with a THREE policy.

THREE is a leader in food industry risk management. Our policy is designed to protect your whole business as it includes coverage most restaurants need to mitigate risks, including:

Workers' Compensation Insurance

This coverage protects employees who get hurt at work. It can pay for their treatment and rehabilitation and cover part of their wages while they recover. If an employee dies on the job, this insurance can pay what’s known as a death benefit to the family.

Property Insurance

This part of a THREE policy protects your business from the costs of repairing, restoring, or replacing business property. It’s crucial in case of an incident like a kitchen fire or natural disaster that damages your building or its contents. Plus, it can pay expenses related to business interruption if you have to shut down temporarily.

Employment Practices Liability Insurance

EPLI covers claims by your employees of sexual harassment, discrimination, wrongful termination, and the associated legal costs.

Commercial Auto Insurance

Accident liability, physical damage to your vehicles (collision and non-collision related damage), and towing reimbursement are included in Commercial Auto.

Liquor Liability Insurance

The Liquor Liability component of a THREE policy can protect you from incidents related to serving (or overserving) alcohol to your customers.

Cyber Liability Insurance

If a hacker gains unauthorized access to your systems, steals sensitive information, and uses it to commit fraud, cyber liability can protect your business.

A THREE policy has all of the coverage most businesses need—making it an effective component of your restaurant risk management plan.

Getting a quote and buying insurance from THREE is easy.

Getting a quote for restaurant business insurance shouldn’t be difficult or time-consuming, and with THREE, it isn’t. You can get a quote online in five minutes or less.

After getting a quote, you can also buy your policy online or over the phone. Coverage is typically active the next day.

Get a Quote

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5 proven strategies for restaurant risk management.

Risk management is essential in the food industry. However, it’s impossible to eliminate all restaurant business risks. But if you’re willing to invest the time and effort, there are some steps you can take to reduce the risks common in the industry.

Here are five actions that can greatly reduce the likelihood of costly food service incidents:

To minimize your risks, you have to understand your risks. It’s essential to look at every aspect of your operation critically and consider what could go wrong. That’s probably not something you’ll look forward to or enjoy, as it forces you to acknowledge that your business is vulnerable to all kinds of incidents—and that can be a little scary. But knowledge is power, and once you complete your restaurant risk assessment, you’re in the driver’s seat and can take steps to minimize those vulnerabilities.

The restaurant industry tends to have a high turnover rate, so your business will likely bring in new employees regularly. And, of course, you want them to get up-to-speed as quickly as possible. Just be sure not to prioritize speed over safety. Standardizing and documenting how you’ll get new people acclimated to their roles and responsibilities ensures safety training doesn’t get forgotten. Training should include providing general information (like company policies and rules) and role-specific training (how to use kitchen equipment as a cook), as well as key safety processes and procedures.

Trying to reduce your restaurant business risk? We can help!

THREE has experience providing insurance for food service businesses, and many restaurant owners see us as a partner in managing their risk. New owners rely on us to explain how our policy brings together the coverage they need. That helps them open and operate their restaurants with confidence.

Experienced owners and operators trust THREE for whole-business coverage backed by hands-on service from quote to claim. As their companies grow or change, we update their policies to match.

Let’s work together to manage your restaurant risks effectively.

You’re the expert in running a successful food service establishment. We’re the experts in insurance for restaurants. With the protection offered in our comprehensive policy, you can stay focused on creating exceptional dining experiences that bring customers back again and again.

If you have questions about restaurant insurance and the many advantages of a THREE policy, don’t hesitate to reach out. Our friendly and knowledgeable business advisors are here for you!

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About the Author

Josh Sklar

Product Marketing Lead

Josh Sklar is a Product Marketing Lead at THREE by Berkshire Hathaway, where he leads brand strategy, positioning, content, and go-to-market strategies. He has spent most of his career at the intersection of insurance and marketing, helping to redefine commercial insurance for both agents and businesses.