Running a restaurant comes with a long list of unique risks. Not only are you up against the fact that about 90% of all restaurants fail within their first year of being in business, but you also have a whole host of other risks to contend with.

For example, what happens if a patron has a couple of alcoholic beverages and then hurts himself or someone else? Your business could be held liable. Or what if a diner gets sick after eating at your restaurant? Again, you could be responsible. Or what if a pipe bursts and ruins all of your furniture and equipment? You could lose everything!

That’s why it’s so important for restaurant owners to insure their businesses. The right restaurant insurance policy can protect your business investment on all levels – from covering your actual building and its contents to protecting your business against lawsuits from patrons.

Restaurant insurance is the most important investment you can make if you own a dining establishment, but with so many different coverage options to choose from, it can be confusing trying to understand all the different types of restaurant insurance.

With that in mind, let’s take a look at the different types of insurance you need to have for your restaurant.

Property insurance

This can protect your building and its contents in the event of a fire, busted pipe, and other covered events.

Any business owner that has a mortgage on the business or equipment should invest in property insurance.

General liability insurance

A general liability policy offers coverage for things like a slip-and-fall accident, a diner who gets sick after eating your food, and so on.

Basically, it’s a policy that will help protect your restaurant in today’s lawsuit-driven world.

Liquor liability insurance

If your restaurant serves alcohol, liquor liability insurance is incredibly important.

Without liquor liability, your business could face an enormous lawsuit if a buzzed patron causes harm to himself or someone else. That’s the type of lawsuit that could bankrupt your business. Invest in liquor liability insurance to protect your restaurant.

Life insurance

Your lender may require you to carry a life insurance policy, depending on how much you borrow.

Even if it isn’t required, having life insurance is still smart in case something happens to you and your family is left with a restaurant to run and bills to pay.

Workers compensation insurance

Most states require all employers to have some type of workers compensation insurance.

It’s particularly important in the restaurant business as there are many hazards that can lead to employee injury – slip and fall accidents in the kitchen, grease burns, etc.

Unemployment insurance

This policy will provide coverage for ex-employees awarded workers compensation until they find another job.

With so many different types of restaurant insurance, it’s important that you work with a knowledgeable, experienced agent who can explain your options and put together a comprehensive policy that protects you and your business. Learn more about restaurant insurance at