How to choose the right restaurant business insurance.
Omaha, NE, Dec. 17, 2024 (GLOBE NEWSWIRE) — If you own a restaurant, you make a lot of decisions, from menus to marketing and more. One of the most important choices you’ll make is choosing the right restaurant business insurance to cover potential lawsuits, property damage, and other costly events.
Choosing not to be insured isn’t really an option. One incident can create an expense that’s nearly impossible to pay if you don’t have insurance. Imagine that your server accidentally gives a customer the wrong entree, and the diner suffers a severe allergic reaction. They have to be transported to the hospital by ambulance, get treatment, and stay overnight. The person also misses several days of work while recovering. If they sue your restaurant and win, you could easily face tens of thousands of dollars in related costs (for your legal defense, court-awarded damages, etc.), if not more.
Most restaurants and other small businesses would struggle to pay those costs out of their savings or revenues. Even if they can pay them, the loss could definitely hurt the business going forward, leaving little or no budget for advertising, facility maintenance, or equipment repairs.
Let’s dive into this critical type of insurance, including the decisions you need to make when considering a purchase, how comprehensive insurance can protect you from more risks, and why restaurant business insurance from THREE is the right choice.
5 essential questions for choosing restaurant insurance coverage.
When considering restaurant business insurance, it’s crucial to ask yourself five key questions:
1. Do we even need restaurant insurance coverage?
In short, yes! Every business should have insurance, and restaurants face lots of risks. Restaurants are busy places with employees hustling to complete tasks, vendors making deliveries, and customers continually coming and going. All that activity opens the door to accidental property damage, customer injuries, and potential lawsuits.
Employee injuries are another concern. To protect workers from costs associated with getting hurt or sick on the job, states almost always require restaurants to have Workers’ Compensation Insurance.
2. What types of insurance do we need for our restaurant?
Restaurant owners need insurance that covers their people, property, and operations. Generally, these are the three main components of any business that need protection. People are first on that list because they’re your most important asset. As noted above, most states require restaurant owners to carry Workers’ Comp to handle costs associated with on-the-job injuries or illnesses, including treatment and lost wages during recovery. A Workers’ Comp policy can also pay a death benefit to surviving family members if an employee dies at work.
Protecting your people and business also means having insurance that addresses lawsuits stemming from allegations of sexual harassment, discrimination, and wrongful termination. These incidents are typically covered by Employment Practices Liability Insurance (EPLI).
Restaurants also need to shield themselves from the high cost of property damage. Remember that the term “property” has multiple meanings in this context. You might immediately think of your building, and it’s true that you need insurance for the physical space that houses your restaurant, but there are other types of property you can and should protect. If you have vehicles, your restaurant insurance policy should pay for damage to them, as well as towing costs.
Perishable food items are another type of property. If food spoils due to a power outage affecting refrigeration or some other cause, your insurance may reimburse you for these costs.
Your operations are the third main source of risk. Issues like liquor liability lawsuits, the theft of sensitive information in cyberattacks, or mistakes by your employees (like the food allergy example above) can be very costly if you don’t have insurance that covers your operations.
3. What does restaurant insurance cost?
Just like how the types of coverage vary by insurance provider, costs vary too. If you want a clear idea of what you can expect to pay for comprehensive restaurant insurance, THREE makes it easy to find by getting an online quote. When determining your rate, we consider your restaurant’s location, size, claims history, and other factors.
4. When should our coverage be active?
Your restaurant insurance policy should be active before you begin operations. Keep in mind that means you’ll probably need insurance weeks or months before you serve your first customer. Coverage is important when you’re training your employees and getting ready to open your restaurant. In fact, it’s fair to say insurance is critical in that period since your team is still “working out the kinks,” and accidents may be more likely until they’ve fine-tuned the various processes for preparing meals and serving guests.
Having active coverage on day one is easy with THREE. We make buying insurance fast and efficient, and your policy can typically be effective as soon as the next day.
5. Where should we buy our restaurant insurance?
It’s vital to get your restaurant insurance from a reliable provider that will be there if you get sued or suffer property damage. Of course, we recommend you purchase your restaurant insurance policy from THREE! Why? There are several reasons. First, THREE is backed by Berkshire Hathaway, one of the most respected and trusted names in insurance. You want to be confident your insurer will stand behind you if you ever have to report a claim.
Second, our policy has all the essential insurance coverage most restaurants need. We understand the restaurant industry and have designed our policy to protect owners from the many business risks they face.
Finally, when you buy insurance from THREE, you get more coverage in a single policy than anywhere else. Busy restaurant owners appreciate anything that makes their lives easier, including having just one policy to manage and a single number to call for support and claims.
Who chooses restaurant insurance from THREE?
First-time business owners love how easy and reassuring it is to do business with us. They see us as more than an insurance provider. We’re a partner they can turn to for help protecting their businesses.
Established owners also value the restaurant insurance they get from THREE. They understand the risks of running a food service business and appreciate that our policy includes all the necessary types of insurance for a restaurant. These owners also like our ongoing support as they adjust their coverage to avoid coverage gaps when their business grows or changes.
Get all the insurance your restaurant needs in one policy.
Ensuring your business is protected from the many risks in the restaurant industry can feel a little overwhelming. We take the stress out of restaurant insurance by providing all the coverage you need in one policy. You can buy it today and be protected tomorrow.
If you have questions about restaurant insurance, we’re happy to answer them. Call 1-800-507-4495, Mon. – Fri. 8am-9pm ET, to talk with one of our friendly small business advisors.
About THREE Business Insurance
Our promise: one policy, comprehensive coverage, and a fair price. It sounds simple because it is. THREE is here to serve you and your business, with no middleman and as your business’s only insurer, we’ll protect you from loss, guide you through crisis, and be here when you need us. https://threeinsurance.com
Media Contact:
Dave Stanard | 1-800-507-4495
- Brightstar Capital Partners Completes Acquisition of PlayAGS for Approximately $1.1 Billion Dollars - June 30, 2025
- Yorkville Acquisition Corp. Announces Closing of $172,500,000 Initial Public Offering, Including Full Exercise of Underwriters’ Over-Allotment Option - June 30, 2025
- Progress Software Acquires Nuclia, an Innovator in Agentic RAG AI Technology - June 30, 2025
