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3 things to know about Restaurant Business Insurance

Risk is always on the menu for restaurant business owners. Each workday is distinct, and while the dangers in a bustling commercial kitchen are clear, the extra risks of operating a high-turnover business can be harder to identify.

What kind of restaurant insurance do you need?

Most state laws and regulations by property owners require you to insure your restaurant ahead of opening its doors for the first time. Adequate coverage should protect your business operations, the physical property you rent or own, as well as your employees.

But what about your future plans for your restaurant? Do you have plans to add a delivery service, branch into catering, rent your space or start bartending? To make sure you are covered for all the unique risks, you will need a comprehensive policy that grows with your business.

Use our self-assessment tool to help you take stock of your current coverage, and identify areas where you may have gaps.

Chef placing spinach and arugula on top of freshly baked pizza with mushrooms and tomatoes

What are common risks restaurant owners face?

Allergic Reactions and Food Safety/Spoilage

About 15 million people in the United States have food allergies1. And nearly half of fatal food allergy reactions are caused by food from a restaurant or other food service establishment*. If one of your servers accidentally brings food to a customer with an allergy, you may be responsible for costly medical bills. Restaurant liability Insurance is a critical piece of coverage that can help your business pay for these costs.

Accidents and Medical expenses

Workers in the food services industry experience injuries requiring days away from work at a higher rate than those in other industries2. When one of your cooks gets third grade burns while frying with hot oil, they must be on bed rest for a few weeks to get better. Workers’ compensation will protect you from liability and pay lost wages and medical expenses for your employee.

Data breach

Data breaches have the potential to cause serious financial impact. A hacker can gain unauthorized access to the network supporting your payments. Or have malware planted in your system that extracts cardholder and card information.

Restaurant owners need cyber insurance to protect against expenses from data breaches, customer payments, and compromised sensitive data.

Road accidents from catering/delivery

You don’t have to own a food truck to require commercial auto insurance. If your delivery driver gets into an accident on their way to an event you are catering or when picking up supplies for the restaurant, you need to have the right coverage. Restaurant owners' Commercial Auto Insurance can help you cover medical expenses and repairs for property damage when an employee is driving for business.

Sexual Harassment Claims

Did you know the restaurant industry has more sexual harassment claims than any other industry? Most restaurant owners don't realize that they are not typically covered under General Liability coverage for claims made against their business by employees. To protect your business from allegations of sexual harassment, wrongful termination, and discrimination you need Employment Practices Liability Insurance (EPLI).

How can I get an insurance quote online?

THREE by Berkshire Hathaway offers straightforward, comprehensive coverage for your restaurant in one single policy. We understand the unique risks that restaurant owners face. THREE is here to help you get a customized quote to protect your business from injuries, accidents, legal, and medical fees.

When you start a quote, we will ask you a few basic questions to get started: where your business is located, how many employees you have, and whether you use vehicles for work. It is a simple process from there, and you will have a quote in minutes!

You can also learn more about how restaurant insurance will protect you from industry risks so you can focus on growing your business here.

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¹ Radke TJ, Brown LG, Faw B, et al. Restaurant Food Allergy Practices — Six Selected Sites, United States, 2014. MMWR Morb Mortal Wkly Rep 2017;66:404–407. DOI: