Restaurant Business Insurance Cost (2025 Rates)

Updated: October 16, 2025

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Key Takeaways

Restaurant business insurance costs between $655 and $2,992 annually, varying by your coverage needs, location and restaurant type.

Your restaurant insurance rates depend on where you operate, past claims and your staff size.

Shop multiple business insurers, bundle coverage, raise deductibles and pay yearly to lower your restaurant insurance costs.

How Much Is Insurance for a Restaurant Business?

We found average business insurance costs for restaurant companies for commonly needed coverage are as follows:

Complete Restaurant Coverage Package: $359 per month or $4,306 yearly for a combined BOP, workers' compensation and professional liability protection.
General Liability Coverage: $146 monthly or $1,753 annually
Workers' Compensation Insurance: $63 per month or $760 per year
Professional Liability Coverage: $82 per month or $980 annually
Business Owner's Policy (BOP) Insurance: $214 monthly or $2,566 annually


BOP	$214	$2,566
General Liability	$146	$1,753
Professional Liability (E&O)	$82	$980
Workers' Comp	$63	$760

Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.

Get Matched to Cheap Restaurant Business Insurers

Select your industry and state to get a customized quote.

Industry

State

Restaurant Business Insurance Cost of General Liability Coverage by State

Restaurant business insurance cost for general liability coverage varies dramatically by location. Maine restaurants pay just $126 monthly compared to the $146 national average, while Louisiana operators have $172 monthly premiums for similar protection.


Alabama	$143	$1,711
Alaska	$141	$1,695
Arizona	$137	$1,649
Arkansas	$140	$1,677
California	$162	$1,947
Colorado	$144	$1,734
Connecticut	$158	$1,900
Delaware	$156	$1,874
Florida	$158	$1,892
Georgia	$148	$1,776
Hawaii	$165	$1,978
Idaho	$138	$1,658
Illinois	$160	$1,919
Indiana	$142	$1,705
Iowa	$139	$1,665
Kansas	$142	$1,698
Kentucky	$135	$1,615
Louisiana	$172	$2,069
Maine	$126	$1,515
Maryland	$139	$1,669
Massachusetts	$153	$1,834
Michigan	$138	$1,656
Minnesota	$137	$1,640
Mississippi	$146	$1,757
Missouri	$144	$1,725
Montana	$145	$1,741
Nebraska	$138	$1,654
Nevada	$164	$1,972
New Hampshire	$145	$1,739
New Jersey	$165	$1,981
New Mexico	$147	$1,758
New York	$169	$2,030
North Carolina	$126	$1,515
North Dakota	$127	$1,520
Ohio	$135	$1,622
Oklahoma	$144	$1,724
Oregon	$135	$1,624
Pennsylvania	$168	$2,015
Rhode Island	$160	$1,921
South Carolina	$150	$1,801
South Dakota	$136	$1,635
Tennessee	$142	$1,705
Texas	$147	$1,764
Utah	$138	$1,656
Vermont	$140	$1,679
Virginia	$133	$1,592
Washington	$166	$1,988
West Virginia	$153	$1,834
Wisconsin	$143	$1,716
Wyoming	$135	$1,617

Note: We based these general liability rates on restaurant businesses with two employees across different states. Your rates will vary based on your location, claims history and the services you provide.

Restaurant Business Insurance Cost of Workers’ Compensation Coverage by State

Restaurant workers' compensation insurance rates differ across states. The cost of workers' compensation insurance ranges from $55 monthly in North Carolina to $73 in New York. State regulations and historical claim patterns influence these pricing 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

Note: We based these workers' comp rates on restaurant businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.

Restaurant Business Insurance Cost of Professional Liability Coverage by State

Your professional liability cost varies by location. Nationwide, this coverage averages $82 monthly. North Carolina offers the most affordable rates at $71 monthly, while New York businesses pay the highest premiums at $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

Note: We based these professional liability rates on restaurant businesses with two employees across different states. Your actual rates will depend on your services offered and location.

Restaurant Business Insurance Cost of BOP Coverage by State

Restaurant business insurance costs vary based on your state, with business owner's policy (BOP) coverage showing the widest price differences. BOP insurance cost ranges from $183 in North Carolina to $249 in New York for the same coverage.

This $66 monthly difference translates to $792 more per year for New York restaurant owners compared to those in the North Carolina. Louisiana ($245), New Jersey ($245) and Pennsylvania ($247) also rank among the most expensive states for restaurant BOP coverage.

Beyond North Carolina, restaurant owners find affordable BOP rates in Maine ($186), Virginia ($193) and South Dakota ($194). These state-level variations reflect differences in litigation costs, natural disaster risks and local business regulations that insurers factor into their pricing models.


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

Note: We based these BOP rates on restaurant businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.

Restaurant Business Insurance Cost by Provider

Restaurant business insurance costs vary by provider, ranging from $92 to $161 monthly. These price differences reflect each insurer's market focus and strategic priorities, which shift over time based on profitability and coverage expansion opportunities.


Chubb	$155	$1,860
Coverdash	$98	$1,174
Hiscox	$137	$1,647
NEXT Insurance	$141	$1,691
Nationwide	$92	$1,098
Progressive Commercial	$127	$1,526
Simply Business	$126	$1,510
The Hartford	$102	$1,218
Thimble	$136	$1,627
biBERK	$161	$1,928

Restaurant Business Insurance Cost Factors

Restaurant business insurance costs depend on multiple factors insurers review when determining your policy price:

Geographic location

Neighborhood crime rates and foot traffic patterns directly influence restaurant insurance costs. Establishments in high-traffic urban districts or areas with frequent property incidents have different premium structures than suburban locations.

Safety record and claims history

Foodborne illness outbreaks and customer injuries create severe liability events for restaurants. Claims involving slip-and-falls, burns or contamination incidents remain on your record and drive up renewal costs for multiple years afterward.

Types of service

Fast-casual spots serving prepped items present manageable risk compared to full-service restaurants. Fine dining establishments with extensive alcohol sales, raw bar offerings or tableside preparation have heightened exposure across multiple fronts.

Employee count and payroll

Kitchen staff have burns, cuts and falls daily in fast-paced environments. Every cook, server and dishwasher increases your workers' comp burden, with restaurant industry classifications carrying higher rates due to documented injury frequency.

Business size and revenue

Seating capacity and annual sales reflect customer volume and claim probability. Small cafes grossing $200,000 with 30 seats operate at radically different risk levels than bustling restaurants serving 200 covers nightly and billing $1.5 million.

Coverage limits

General liability and product liability form the foundation of restaurant insurance. Most operators maintain $1 million in coverage, though establishments with liquor licenses or serving large events often boost limits to $2 million for adequate protection.

Equipment values

Commercial kitchens contain expensive ovens, refrigeration, hood systems and specialized equipment. Full-service restaurants with build-outs, dining furniture and point-of-sale systems need substantially more property coverage than counter-service operations.

Credit score and financial stability

Restaurant failure rates make financial health a critical underwriting factor. Strong credit and established profitability can help secure competitive rates, while new concepts or struggling financials often trigger higher premiums or coverage restrictions.

How to Get Cheap Restaurant Business Insurance

Lowering your restaurant business insurance costs takes careful planning and smart financial decisions, and our step-by-step guide can show you how. By following proven strategies, you can secure the best cheap business insurance for your restaurant while improving your overall risk profile for lasting savings.

1
Choose the right coverage types for your business
Restaurants need general liability for slip-and-falls and customer injuries, product liability for foodborne illness claims, and property insurance for kitchen equipment, furniture and inventory that can total hundreds of thousands.

Add liquor liability if you serve alcohol, workers' compensation for kitchen burns and cuts, equipment breakdown for refrigeration and cooking appliances, and business interruption since a fire or health closure can halt revenue for weeks.
2
Shop multiple insurance companies
Restaurant premiums vary dramatically based on cuisine type, seating capacity, alcohol sales percentage, and whether you offer delivery or catering services. Food service insurers understand health department regulations, fire suppression requirements, and peak dining risks better than general carriers.
3
Bundle your coverage types
A business owner's policy combining general liability, property and business interruption saves 20% to 30% compared to separate policies. Many insurers offer restaurant packages that include liquor liability and equipment breakdown at reduced bundle rates.
4
Increase your deductibles
Higher property deductibles of $2,500 to $5,000 can reduce premiums by 18% to 26%, but consider that commercial kitchen equipment repairs are expensive. Keep general liability and product liability deductibles low since foodborne illness outbreaks or serious injury claims can escalate to six-figure lawsuits quickly.
5
Pay annually instead of monthly
Monthly installment plans add 5% to 10% in processing fees, which, on a $15,000 restaurant policy, costs $750 to $1,500 extra annually. Paying upfront removes these charges and earns 5% to 8% discounts from food service carriers.
6
Review and adjust your coverage annually
Review your policy whenever you expand seating, add outdoor dining or bar service, or invest in major equipment like wood-fired ovens or commercial smokers. If you've upgraded fire suppression systems, completed food safety certifications or installed security cameras, these improvements can qualify for premium discounts.

Insurance for Restaurant Business Cost: Bottom Line

Restaurant business insurance costs between $55 and $249 per month, though your actual premium will depend on factors like location, business size and claims history. To find more affordable coverage, compare quotes from multiple insurers, bundle your policies, opt for higher deductibles and consider paying annually instead of monthly.

Restaurant Insurance Cost: FAQ

Restaurant business owners commonly ask about insurance costs. We answered the most frequent questions below:

What is the cheapest type of restaurant business insurance?

Workers' compensation costs $63 monthly and covers employee injuries only. Most restaurant businesses require general liability coverage at $146 monthly for protection against customer accidents and property damage claims.

How much does restaurant business insurance cost in expensive states like California and New York?

You'll pay more in these states. General liability in California runs $162 monthly (versus $146 national average), and BOP costs $237 monthly (versus $214 average). New York is similar at $169 and $249, respectively.

How much can I save by bundling my restaurant business insurance policies?

Combining multiple restaurant business insurance policies with one insurer generates greater savings than purchasing individual policies. Insurance companies provide discounts when you bundle general liability, commercial property and commercial auto coverage together.

What factors make my restaurant business insurance more expensive?

Higher premiums result from multiple risk factors: cooking with open flames and hot oil, serving alcohol, high employee turnover, food safety liability, expensive kitchen equipment, and operating during late hours when incidents increase.

Should I choose a $500 or $2,500 deductible for my restaurant business insurance?

Higher deductibles reduce monthly premiums but increase out-of-pocket costs during claims. Consider your restaurant's cash flow and expected claim frequency when deciding.

How much does workers' compensation cost for restaurant businesses by state?

Restaurant workers' compensation costs vary by state, ranging from $55 monthly in North Carolina to $73 monthly in New York for coverage.

Is business owner's policy (BOP) worth the extra cost for restaurant companies?

Yes, BOP insurance is worth it for restaurants. BOP costs $214 monthly but combines general liability, commercial property and business interruption coverage. Purchasing these protections together costs less than separate policies, making BOP a smart choice for restaurant owners.

How often should I shop around for restaurant business insurance quotes?

Shop annually when your policy renews. Comparing quotes from multiple insurers can uncover savings, especially after business changes like expanding services or adding staff.

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 in 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

We used a typical small restaurant business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that 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!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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