Question 1

What insurance do restaurants and bars need?

Accepted Answer

Restaurants and bars typically need: General Liability (bodily injury and property damage to customers), Liquor Liability (required if you sell or serve alcohol), Commercial Property (building, tenant improvements, equipment), Business Income (lost revenue during a forced closure), Workers' Compensation (required for all employees), and Food Contamination/Spoilage coverage. Some operations also need Employment Practices Liability and hired/non-owned auto.

Question 2

Is liquor liability required for bars?

Accepted Answer

Liquor liability is not legally mandated in California, but it is practically required. Standard GL policies exclude claims arising from the sale or service of alcohol. If a patron causes injury after drinking at your establishment and files a dram shop or premises liability claim, standard GL will not respond. Most landlords, lenders, and event venues also require liquor liability as a condition of their lease or contract.

Question 3

How much does restaurant and bar insurance cost?

Accepted Answer

Typical annual premiums: small casual restaurant $1,500–$4,000; full-service restaurant with alcohol $4,000–$12,000; bar or nightclub $5,000–$25,000+. Key rating factors include annual revenue, alcohol-to-food revenue ratio, hours of operation, square footage, cooking type (open flame vs. no cooking), and loss history. Late-night bars (open after 2 AM) carry the highest premiums due to elevated liquor liability and assault/battery exposure.

Question 4

What is assault and battery coverage and why do bars need it?

Accepted Answer

Assault and battery (A&B) coverage protects you from liability claims arising from fights, altercations, or violence on your premises — including claims against your security staff. Standard GL policies either exclude A&B entirely or limit it to a small sublimit ($25K–$100K). Bars, nightclubs, and late-night restaurants are frequently named in A&B suits and need explicit A&B coverage as part of their GL or liquor liability program.

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