Restaurant business insurance costs vary significantly across coverage types, and understanding these differences helps with smart budget planning. MoneyGeek's analysis shows monthly premiums range from $63 for workers' compensation to $214 for business owner's policy (BOP) coverage.
How Much Does Restaurant Business Insurance Cost?
Restaurant business insurance costs as little as $63 per month, though your specific business details will determine your final rate.
Discover cheap restaurant business insurance below.
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Updated: August 22, 2025
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Key Takeaways
Restaurant business insurance costs range from $63 to $214 monthly, with Business Owner's Policies commanding the highest premiums.
Your restaurant insurance premiums depend on location, claims history, services offered and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable restaurant business insurance costs.
Average Restaurant Business Insurance Cost Overall
| BOP | $214 |
| General Liability | $146 |
| Professional Liability (E&O) | $82 |
| Workers' Comp | $63 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Restaurant Business Insurance Cost for General Liability Coverage by State
Your restaurant business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $126 monthly (versus the $146 national average), while Louisiana costs $172 monthly.
| Alabama | $143 |
| Alaska | $141 |
| Arizona | $137 |
| Arkansas | $140 |
| California | $162 |
| Colorado | $144 |
| Connecticut | $158 |
| Delaware | $156 |
| Florida | $158 |
| Georgia | $148 |
| Hawaii | $165 |
| Idaho | $138 |
| Illinois | $160 |
| Indiana | $142 |
| Iowa | $139 |
| Kansas | $142 |
| Kentucky | $135 |
| Louisiana | $172 |
| Maine | $126 |
| Maryland | $139 |
| Massachusetts | $153 |
| Michigan | $138 |
| Minnesota | $137 |
| Mississippi | $146 |
| Missouri | $144 |
| Montana | $145 |
| Nebraska | $138 |
| Nevada | $164 |
| New Hampshire | $145 |
| New Jersey | $165 |
| New Mexico | $147 |
| New York | $169 |
| North Carolina | $126 |
| North Dakota | $127 |
| Ohio | $135 |
| Oklahoma | $144 |
| Oregon | $135 |
| Pennsylvania | $168 |
| Rhode Island | $160 |
| South Carolina | $150 |
| South Dakota | $136 |
| Tennessee | $142 |
| Texas | $147 |
| Utah | $138 |
| Vermont | $140 |
| Virginia | $133 |
| Washington | $166 |
| West Virginia | $153 |
| Wisconsin | $143 |
| Wyoming | $135 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Restaurant Business Insurance Cost for Workers’ Compensation Coverage by State
Your restaurant business cost for workers' compensation varies by state. North Carolina offers the lowest rates at $55 monthly and New York the highest at $73 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $62 |
| Alaska | $58 |
| Arizona | $60 |
| Arkansas | $61 |
| California | $70 |
| Colorado | $63 |
| Connecticut | $69 |
| Delaware | $68 |
| Florida | $68 |
| Georgia | $64 |
| Hawaii | $66 |
| Idaho | $60 |
| Illinois | $70 |
| Indiana | $62 |
| Iowa | $60 |
| Kansas | $61 |
| Kentucky | $59 |
| Louisiana | $73 |
| Maine | $55 |
| Maryland | $61 |
| Massachusetts | $67 |
| Michigan | $60 |
| Minnesota | $59 |
| Mississippi | $64 |
| Missouri | $62 |
| Montana | $62 |
| Nebraska | $60 |
| Nevada | $72 |
| New Hampshire | $63 |
| New Jersey | $72 |
| New Mexico | $64 |
| New York | $73 |
| North Carolina | $55 |
| Oklahoma | $59 |
| Oregon | $59 |
| Pennsylvania | $73 |
| Rhode Island | $70 |
| South Carolina | $65 |
| South Dakota | $59 |
| Tennessee | $62 |
| Texas | $63 |
| Utah | $60 |
| Vermont | $60 |
| Virginia | $58 |
| West Virginia | $66 |
| Wisconsin | $63 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Restaurant Business Insurance Cost for Professional Liability Coverage by State
Professional liability insurance rates vary by state, similar to other business coverage types. The national average cost for professional liability is $82 monthly. North Carolina offers the lowest rates at $71 monthly, while E&O insurance in New York costs $95 monthly.
| Alabama | $82 |
| Alaska | $74 |
| Arizona | $76 |
| Arkansas | $77 |
| California | $92 |
| Colorado | $80 |
| Connecticut | $90 |
| Delaware | $89 |
| Florida | $86 |
| Georgia | $83 |
| Hawaii | $84 |
| Idaho | $78 |
| Illinois | $91 |
| Indiana | $79 |
| Iowa | $77 |
| Kansas | $79 |
| Kentucky | $76 |
| Louisiana | $93 |
| Maine | $72 |
| Maryland | $77 |
| Massachusetts | $85 |
| Michigan | $78 |
| Minnesota | $76 |
| Mississippi | $83 |
| Missouri | $81 |
| Montana | $81 |
| Nebraska | $78 |
| Nevada | $94 |
| New Hampshire | $81 |
| New Jersey | $91 |
| New Mexico | $84 |
| New York | $95 |
| North Carolina | $71 |
| North Dakota | $72 |
| Ohio | $77 |
| Oklahoma | $76 |
| Oregon | $76 |
| Pennsylvania | $94 |
| Rhode Island | $88 |
| South Carolina | $83 |
| South Dakota | $76 |
| Tennessee | $79 |
| Texas | $81 |
| Utah | $79 |
| Vermont | $79 |
| Virginia | $75 |
| Washington | $92 |
| West Virginia | $86 |
| Wisconsin | $81 |
| Wyoming | $76 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Restaurant Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show substantial variation in restaurant business insurance costs nationwide. Monthly premiums range from $183 in North Carolina to $249 in New York for comparable coverage.
| Alabama | $211 |
| Alaska | $205 |
| Arizona | $201 |
| Arkansas | $205 |
| California | $237 |
| Colorado | $210 |
| Connecticut | $231 |
| Delaware | $228 |
| Florida | $232 |
| Georgia | $217 |
| Hawaii | $244 |
| Idaho | $202 |
| Illinois | $233 |
| Indiana | $208 |
| Iowa | $202 |
| Kansas | $204 |
| Kentucky | $197 |
| Louisiana | $245 |
| Maine | $186 |
| Maryland | $207 |
| Massachusetts | $227 |
| Michigan | $204 |
| Minnesota | $199 |
| Mississippi | $216 |
| Missouri | $207 |
| Montana | $213 |
| Nebraska | $206 |
| Nevada | $242 |
| New Hampshire | $212 |
| New Jersey | $245 |
| New Mexico | $213 |
| New York | $249 |
| North Carolina | $183 |
| North Dakota | $190 |
| Ohio | $199 |
| Oklahoma | $204 |
| Oregon | $202 |
| Pennsylvania | $247 |
| Rhode Island | $236 |
| South Carolina | $225 |
| South Dakota | $194 |
| Tennessee | $209 |
| Texas | $213 |
| Utah | $201 |
| Vermont | $204 |
| Virginia | $193 |
| Washington | $241 |
| West Virginia | $224 |
| Wisconsin | $206 |
| Wyoming | $197 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Restaurant Business Insurance Cost
Restaurant business insurance costs vary based on several factors that insurance companies consider. Understanding these elements helps with budget planning. Here's how different factors affect your rates.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas where there are natural disasters or high crime increases your risk profile, while state differences create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single slip-and-fall lawsuit can substantially increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Full-service restaurants face different risks than quick-service establishments. Offering alcohol service, delivery, or catering increases liability exposure and affects insurance costs compared to counter-service-only operations.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small café with $200,000 in annual revenue pays less than a full-service restaurant chain earning $2 million yearly.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
Commercial kitchen equipment, refrigeration systems and delivery vehicles require specific coverage limits. A restaurant with $500,000 in kitchen equipment needs higher coverage limits than one with basic cooking appliances.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Restaurant Business Insurance
Restaurant owners can lower their insurance costs through smart comparison shopping and risk management strategies. These proven methods will help reduce your premiums now and create long-term savings for your business.
- 1
Choose the right coverage types for your restaurant
Understanding what types of business insurance your restaurant needs prevents overpaying for unnecessary coverage. General liability protects against customer injuries and food-related incidents, while workers compensation covers employee injuries. Property insurance safeguards your equipment and inventory.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Check with an independent agent who can handle quote comparisons for you.
- 3
Bundle your coverage types
You can get discounts when you bundle multiple policies. Combining general liability, property insurance, and workers' compensation with one provider typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
You can get lower monthly premiums by selecting higher deductibles. This means you'll pay more out-of-pocket for small claims, but your regular payments will be lower.
- 5
Pay annually instead of monthly
Most insurance providers add processing fees to monthly payments. Paying your premium annually eliminates these extra charges and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your restaurant grows. Review your policy yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and risks.
Insurance for Restaurant Business Cost: Bottom Line
Restaurant business insurance costs range from $63 to $214 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Restaurant Business Insurance Cost: FAQ
Business owners ask many questions about restaurant company insurance costs. Here are straightforward answers to the most common questions below.
What is the cheapest type of restaurant business insurance?
Workers' compensation insurance costs $63 monthly, making it the most economical option. However, most restaurants require general liability insurance to protect against customer injuries and property damage.
How much can I save by bundling my restaurant business insurance policies?
Bundling multiple policies through a business owner's policy offers good value for restaurant companies. Many insurers provide package discounts when combining essential coverages into one policy.
What factors make my restaurant business insurance more expensive?
Factors that can cause your insurance for your restaurant business to be more expensive include the following: business location, safety record, number of workers and claims history.
Should I choose a $500 or $2,500 deductible for my restaurant business insurance?
A higher deductible of $2,500 lowers your monthly premiums, but requires more cash when filing claims. Consider your financial stability and claim frequency when choosing your deductible.
How much does workers' compensation cost for restaurant businesses by state?
Restaurant workers' compensation insurance costs range from $55 monthly in North Carolina to $73 monthly in New York, varying based on location and business specifics.
Is business owner's policy (BOP) worth the extra cost for restaurant companies?
A business owner's policy costs around $214 monthly and combines three essential insurance types in one package. For restaurants, this bundled coverage provides excellent value and simplified protection as operations expand.
How often should I shop around for restaurant business insurance quotes?
Review your restaurant business insurance annually during renewal time. Compare at least three insurers to find better rates, particularly when your business grows or changes.
How We Determined Restaurant Business Insurance Costs
We collected restaurant business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small restaurant businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the restaurant industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.