Best Restaurant Business Insurance

Nationwide earns our top rating for restaurant business insurance with a MoneyGeek score of 4.8 out of 5. The company combines competitive rates with quality customer service, making it ideal for restaurant owners seeking affordable coverage without sacrificing support. The Hartford and Coverdash also offer strong options for restaurateurs comparing policies.

Note: We based all scores on a restaurant business with two employees across professional liability, general liability, workers' comp and BOP policies.

Nationwide offers the cheapest restaurant business insurance at $92 monthly ($1,098 annually) and leads in general liability and business owner's policy coverage. Restaurant owners seeking workers' compensation should compare rates from NEXT, The Hartford and Thimble, while The Hartford offers the most affordable professional liability coverage.

Nationwide offers the cheapest general liability insurance for restaurant owners at $83 monthly ($994 annually), saving restaurateurs $63 monthly compared to the industry average of $146. This coverage protects your restaurant business against customer slip-and-falls, foodborne illness claims and property damage while keeping costs 43% below average.

NEXT provides the cheapest workers' comp insurance for restaurateurs at $59 monthly ($712 annually). Restaurant owners save $4 monthly compared to the $63 industry average. The Hartford, Thimble, Progressive Commercial and Simply Business offer competitive alternatives for restaurant businesses requiring coverage for kitchen staff injuries and workplace accidents.

The Hartford leads professional liability coverage for restaurant businesses at $73 monthly ($870 annually). Its rate sits 11% below the $82 industry average, helping restaurateurs protect against foodborne illness lawsuits and customer injury claims without overpaying. NEXT, Progressive Commercial and Simply Business are the best alternatives if you're looking for the most affordable professional liability insurance provider.

At $124 monthly ($1,489 annually), Nationwide delivers 42% savings on the cheapest Business Owners' Policy for restaurants compared to the $214 industry average. This bundled coverage protects your restaurant business with general liability, property insurance and business interruption for $1,077 less annually. Coverdash and The Hartford rank as cost-effective alternatives for restaurateurs.

Expect to pay these rates for the restaurant business insurance cost of essential coverage:

• General Liability: $146 on average per month, ranging from $126 to $172, depending on the state
• Workers' Comp: $63 on average per month, ranging from $55 to $73, depending on the state
• Professional Liability (E&O): $82 on average per month, ranging from $71 to $95, depending on the state
• BOP Insurance: $214 on average per month, ranging from $183 to $249, depending on the state

Workers' compensation and general liability coverage are foundational financial protection. Your restaurant's insurance needs expand depending on your operations. For example, liquor liability becomes essential if you serve alcohol, while commercial auto covers delivery vehicles and equipment breakdown protects expensive kitchen systems.

• Workers' Compensation Insurance: Required in almost every state for restaurants with employees, workers' comp covers medical bills and lost wages when kitchen staff suffer burns from fryers, cooks cut themselves during prep work or servers slip on wet floors. Coverage provides two-thirds of lost wages plus full medical expenses per your state's requirements.
• General Liability Insurance: Protects your restaurant when customers slip on spilled drinks, suffer food poisoning from undercooked meals or claim advertising injury. Most commercial leases require $1 million per occurrence and $2 million aggregate limits before you open your doors, covering legal fees, medical bills and settlements from third-party claims.
• Liquor Liability Insurance: Essential if you serve alcohol, protecting against claims when intoxicated patrons cause accidents after leaving your establishment. Dram shop laws in most states hold you legally responsible. Standard coverage starts at $1 million per occurrence for bars, wine-focused restaurants and dining establishments with liquor licenses.
• Commercial Property Insurance: Covers repair costs when kitchen fires damage industrial ovens, burst pipes flood your dining room or theft impacts equipment. Protection extends to your building, kitchen equipment ($40,000 to $200,000), furniture and inventory. Pair with business interruption coverage to replace lost income during repairs.
• Equipment Breakdown Coverage: Pays for repairs when walk-in refrigerators fail, HVAC systems malfunction or electrical components short out. When your commercial refrigerator dies overnight, this coverage replaces the unit and reimburses spoiled inventory. Typical limits range from $25,000 to $100,000 per occurrence, preventing losses standard property policies exclude.
• Commercial Auto Insurance: Required by most states for business-owned vehicles, covering accidents involving delivery vans, catering trucks or company cars. Essential when transporting food to events or making deliveries. State minimum liability limits start at $25,000 per person, though $500,000 to $1 million provides better protection for restaurant operations.
• Cyber Liability Insurance: Protects restaurants handling credit card data from breaches and cyberattacks targeting point-of-sale systems. Coverage pays for customer notification, credit monitoring, legal fees and regulatory fines when hackers compromise payment information. Limits start at $1 million for data breach response and liability coverage.

Getting business insurance for your restaurant requires comparing quotes, understanding coverage needs and choosing providers that protect your dining establishment affordably.

Nationwide offers the best restaurant business insurance with competitive rates starting at $92 monthly and a 4.8 MoneyGeek score. Restaurant owners should secure workers' compensation, general liability, liquor liability and property coverage to protect against kitchen fires, customer slip-and-falls and equipment breakdowns. Compare quotes from several providers to find the right protection for your dining establishment.

We answer frequently asked questions about restaurant business insurance:

We selected the best business insurer for restaurants based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue