How much does restaurant insurance cost in 2026?

Typical restaurant insurance costs by policy

Insureon publishes median premiums paid by restaurant owners who bought through its marketplace. Most of those customers have fewer than five employees, revenue of roughly $50,000 to more than $200,000 and five years or less in business, so treat these as small-restaurant benchmarks.

NEXT reports a different slice of the market: most of its restaurant customers pay between $54 and $333 a month for general liability and between $32 and $107 a month for commercial property, with a median of $160 a month for workers’ comp, based on its active customers over the previous 12 months.

What a typical package adds up to

Few restaurants buy just one policy. MoneyGeek modeled quotes from 10 large commercial insurers for a full-service restaurant with one to four employees across all 50 states and Washington, D.C., before discounts. Its bundles show how the bill grows as you add coverage for kitchen equipment, vehicles and alcohol.

MoneyGeek estimates workers’ comp at about $34 a month per employee on average, so each hire adds to the total. Its cost ranges for add-ons such as liquor liability ($45 to $100 a month) and food spoilage ($42 to $83 a month) come from outside research rather than its own quote model.

Restaurant insurance costs by state

Location moves the price a lot. In MoneyGeek’s model, the same restaurant pays about $318 a month for a BOP in California and about $173 in West Virginia. MoneyGeek attributes the gap to busier markets with higher claim, legal, repair and replacement costs.

Workers’ comp varies even more. MoneyGeek puts it at about $79 a month per employee in California and about $19 in Indiana.

Which restaurant policies are required

Workers’ comp is the policy most often required by law, and the rules are set state by state. California requires every employer with one or more employees to provide workers’ compensation benefits under Labor Code Section 3700. Texas is the main exception: most private employers can choose not to carry it, but those that opt out must notify their employees and the state’s Division of Workers’ Compensation.

Other requirements usually come from licenses and contracts rather than statute. Insureon notes that some jurisdictions require liquor liability coverage to get a liquor license, that landlords often require proof of general liability to sign a commercial lease and that most states require commercial auto for vehicles your business owns. General liability also excludes alcohol-related claims, which is why restaurants that serve drinks usually add liquor liability.

What drives your premium

Insureon lists the factors insurers weigh when they price a restaurant:

• Type of restaurant: a fast-food kitchen with fryers and several employees costs more to insure than a small cafe.
• Property and equipment values, including heavily used kitchen equipment.
• Location: foot traffic, crime rates and exposure to natural disasters.
• Number of employees and payroll, which drive workers’ comp.
• Revenue and size, since more customers means more exposure.
• Limits and deductibles you choose.
• Claims history.

How to lower restaurant insurance costs

Some savings come from how you buy; others come from showing underwriters a well-run kitchen.

• Ask about a BOP. Insureon says a BOP typically costs less than buying general liability and property separately, and small, low-risk food businesses often qualify.
• Compare at least three quotes with the same limits, deductibles and endorsements, as MoneyGeek recommends, so a cheaper quote is not simply thinner coverage.
• Classify every employee correctly for workers’ comp and run a safety plan to cut kitchen injuries, two steps Insureon recommends for lowering that premium.
• Use hired and non-owned auto if staff deliver in their own cars instead of putting those vehicles on a commercial auto policy.
• Keep up hood cleaning, fire suppression maintenance and floor safety. Claims history is one of the factors insurers price, so fewer burns, slips and fires pay off at renewal.
• Choose a higher property deductible only if you could cover it after a loss.
• Buy liquor liability, food spoilage and equipment breakdown only when your operation needs them, but do not skip them if it does.

Getting quotes

Insurers’ appetite for restaurants differs, so prices for the same restaurant can vary widely from one company to the next. Have your revenue, payroll by job type, property values and seating capacity ready, plus your share of sales from alcohol if you serve drinks. A broker such as Florin can compare quotes from several insurers for the same coverage.