Question 1

Does restaurant insurance include liquor liability?

Accepted Answer

Liquor liability can be bundled into most restaurant programs or obtained as a standalone policy. If your restaurant sells or serves alcohol — beer, wine, or spirits — you need liquor liability. Standard GL policies exclude alcohol-related claims. Many restaurant program carriers offer combined GL + liquor liability packages, and coverage is available for restaurants where alcohol is under 50% of revenue.

Question 2

What does food contamination coverage provide?

Accepted Answer

Food contamination coverage provides two protections: (1) spoilage reimbursement for perishable food lost due to equipment breakdown or power outage, and (2) defense cost coverage if a customer alleges foodborne illness. Most restaurant BOPs include $25K–$50K spoilage; specialty programs provide $100K+ with FDA-recall extensions for larger operations.

Question 3

Do I need a UL-300 fire suppression system to get restaurant insurance?

Accepted Answer

Most admitted carriers require a UL-300 wet-chemical fire suppression system with documented quarterly inspections and semi-annual hood cleaning for restaurants with commercial cooking equipment. Failure to maintain cleaning logs is the most common reason kitchen fire claims are denied. E&S carriers may accommodate restaurants without updated systems at higher rates with additional requirements.

Question 4

How much does restaurant insurance cost?

Accepted Answer

Restaurant insurance typically runs $1,500–$5,000 per year for small fast-casual operations and $5,000–$20,000 for full-service restaurants with alcohol. Bars and nightclubs are quoted separately due to higher liquor liability exposure. Key pricing factors include annual revenue, alcohol percentage of total sales, square footage, hours of operation, cooking type, and loss history.

Question 5

Is workers' compensation required for restaurant employees?

Accepted Answer

Yes. In California and most states, workers' compensation is required for any employee, including part-time kitchen and server staff. Restaurant workers have above-average injury rates due to burns, slips, cuts, and repetitive-motion injuries. Workers' comp is typically quoted separately from the property/liability restaurant package.

Restaurant Insurance

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