Restaurants that buy through Insureon pay a median $337 a month ($4,045 a year) for a business owner's policy, $192 a month for general liability and $118 a month for workers' comp, per Insureon's September 2026 figures. Liquor liability adds a median $45 a month, though Insureon says most businesses pay from about $150 to over $4,000 a year for it. Your price moves with the type of restaurant (Insureon contrasts a fast-food kitchen with fryers and a small cafe), equipment and property values, location, staff count, revenue, limits and deductible, and claims history.
Most restaurants pay about $337 a month for a business owner's policy (BOP), based on Insureon's figures for its own customers.
Price is one part of it. Our restaurant insurance guide covers which policies you need and why.
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Restaurant Insurance Cost Breakdown
Premiums from Insureon's 2026 restaurant cost data for its own customers (Insureon calls them averages; its method note describes median premiums):
| Coverage | Average Monthly | Average Annual |
|---|---|---|
| General liability (GL) | $192/mo | $2,300/yr |
| Business owners policy (BOP) | $337/mo | $4,045/yr |
| Workers' compensation | $118/mo | $1,415/yr |
| Commercial auto | $222/mo | $2,669/yr |
| Liquor liability | $45/mo | $546/yr |
How to Lower Your Restaurant Insurance Cost
- Compare quotes on the same limits and deductible. Insureon's BOP median assumes $1 million per occurrence, $2 million aggregate and a $1,000 deductible; price a higher deductible to see what it saves.
- Check whether you qualify for a BOP. Insureon says small, low-risk food businesses are often eligible, and a BOP typically costs less than buying general liability and property cover separately.
- Classify staff correctly for workers' comp. Insureon says correct classification and a plan to prevent kitchen injuries are the main ways to save on workers' comp.
- Price endorsements before you need them. Insureon recommends equipment breakdown and business interruption cover for spoilage and closures after a fire or power outage; ask your insurer what each adds to the premium.
- Keep claims low. A long claims history raises restaurant premiums (Insureon), so ask your insurer which safety records, such as food safety or alcohol service training, it takes into account.
Worked example: Single-location 80-seat full-service restaurant in Tennessee, $1.4M revenue
A single-location, 80-seat full-service restaurant in Tennessee with 22 employees (12 full-time, 10 part-time), $1.4M in annual revenue, alcohol at 35% of sales, no delivery vehicles, closing by 11pm, and four years without claims. Insureon's median per-policy premiums for restaurants: BOP $4,045/yr (bundles general liability with property cover for the kitchen and dining room), workers' comp $1,415/yr and liquor liability $546/yr. Workers' comp is priced on payroll and class code, so a 22-employee restaurant will pay well above the median policy; most Insureon customers have fewer than five employees. Insureon says most businesses pay from about $150 to over $4,000 a year for liquor liability, so ask each insurer how it rates your alcohol sales.
Sum of Insureon median premiums for these coverages: $6,006/yr (sum of Insureon median per-policy premiums, not a quote)
This is an illustration built from Insureon's per-policy figures above, not a quote. Your premium depends on payroll, revenue, claims history, state and the insurer.
What Drives Restaurant Insurance Cost Up or Down
- Type of restaurant: Insureon says a fast-food restaurant with several employees and fryers can pay more than a small cafe with one or two staff.
- Kitchen equipment and property: higher-value and heavily used equipment costs more to insure, and the BOP price rests on the value of your property (Insureon).
- Location: areas with more foot traffic, natural-disaster exposure or crime price higher (Insureon).
- Staff: more employees means more chances for kitchen injuries, and workers' comp is priced mainly on how many employees you have and their job risks (Insureon).
- Alcohol: general liability excludes alcohol-related claims, so serving alcohol adds a liquor liability policy (Insureon). Ask each insurer how your alcohol sales affect that premium.
- Limits, deductibles and claims: higher limits and lower deductibles raise the premium, and so does a long claims history (Insureon).
What You'll Be Asked When Quoting Restaurant Insurance
Whether you quote directly online or work with an independent agent, these are the questions underwriters actually use to price restaurants. Knowing them ahead of time saves back-and-forth and lets you compare quotes apples-to-apples.
Are you full-service, fast food or a small cafe?
Insureon says a fast-food restaurant with several employees and fryers can pay more than a small cafe. For workers' comp, states that use NCCI class codes rate full-service restaurants (9082) and fast food (9083) separately, so ask which code your quote uses.
Do you serve alcohol, and how much of your revenue comes from it?
General liability excludes alcohol-related claims, so serving alcohol means adding liquor liability (Insureon). Ask how your alcohol sales affect the liquor premium; some jurisdictions also require the policy for a liquor license.
Do you deliver, and whose vehicles are used?
Insureon says most states require commercial auto for vehicles the business owns, and points to hired and non-owned auto for personal, rented or leased vehicles used for work. If you use third-party delivery apps, ask your insurer whether any of your policies respond to a delivery accident.
What are your kitchen equipment and other property worth?
Insureon says higher-value and frequently used equipment costs more to insure, and the BOP price depends on your property value. Equipment breakdown and business interruption endorsements are priced on your equipment and on how much perishable stock you keep.
How many employees do you have, and what do they do?
Insureon says workers' comp cost depends mainly on how many employees you have and their job risks, and that classifying workers correctly is one of the main ways to save.
What claims have you had in recent years?
Insureon says a restaurant with a long list of prior claims will likely pay more than one with none. Have loss runs from your current insurer ready.
Frequently Asked Questions
How much does restaurant insurance cost?
Per Insureon's 2026 data, general liability averages $192/month ($2,300/year), a business owners policy averages $337/month, workers' compensation runs $118/month. Total premium depends on revenue, employees, state, and claims history.
What insurance do I need as a restaurant?
Most restaurants need: general liability (often bundled into a business owners policy), workers' compensation once you have any employees, commercial auto for any vehicles in the business, liquor liability if you serve alcohol. The specific mix depends on your operations, employee count, and any contractual requirements from clients or vendors.
How long does it take restaurants to get insurance quotes?
Insureon says most small business owners can get insured within 24 hours of applying for quotes. Its application asks for basics such as revenue and number of employees; if you need workers' comp, liquor liability or commercial auto, also have payroll, alcohol sales, and vehicle and driver details ready.
Should restaurants buy insurance direct or through an agent?
Either route works. Buying direct gets you one insurer's price; a broker, independent agent or online marketplace can return quotes from several insurers off one application. Whichever you use, compare quotes on the same limits, deductible and endorsements, and ask whether liquor liability and workers' comp are included or quoted separately.
Does restaurant insurance cover food poisoning claims?
Insureon says general liability often includes product liability, which protects a restaurant against claims that food it sold caused a foodborne illness. Ask your insurer to confirm products coverage is on your policy, what limit applies, and whether it offers an endorsement for spoiled or contaminated food.
Does general liability cover alcohol-related claims?
No. Insureon lists alcohol-related claims as a general liability exclusion and points restaurants to liquor liability, which costs its restaurant customers a median $45 a month ($546 a year) on $1 million per occurrence and $2 million aggregate limits; Insureon says most businesses pay from about $150 to over $4,000 a year. Some jurisdictions require liquor liability for a liquor license, and many states have dram shop laws that can hold a business liable for harm caused by a customer it served. Check the rules with your state's liquor authority.
Which restaurant insurance policy costs the most?
In Insureon's figures, the business owner's policy is the largest at $337 a month ($4,045 a year), followed by commercial auto at $222, general liability at $192, workers' comp at $118 and liquor liability at $45. Commercial auto applies to vehicles the business owns; for personal, rented or leased cars used for work, such as delivery, Insureon points to hired and non-owned auto.
Do restaurants have to carry workers' comp?
Usually, once you have employees, but each state sets its own rules. Insureon notes that California requires it for restaurants with one or more employees, while coverage is optional in Texas. Check with your state's workers' compensation agency.
Related Guides for Restaurant Insurance
For an independent breakdown of which carriers actually write restaurant insurance well in 2026, see our carrier comparison.
For the coverages restaurants need and what insurers ask before they quote, see our restaurant insurance guide.