Starting a food business and opening a restaurant is a tedious challenge. You’ve finally gone through the business planning, secure the necessary funding, and are about to operate. That is a feat in itself. Congratulations. But aside from getting all your equipment, staff, and menu together as well as finding the best location for your restaurant, there are many other important things to consider.

One such things is insurance.

Businesses can be unpredictable. Calamities and accidents are even more unpredictable. Insurance serves as your safety net in case unfortunate events happen to your restaurant. It covers costs associated with damages and/or liabilities. Without insurance, you may have to take out from your personal funds and run your bank account dry. You don’t want your hard work to go down the drain.

To prepare yourself and your business, here are the 4 types of insurance for your restaurant that you ought to know:

1. General Liability Insurance

You can’t control every single activity in your restaurant. Accidents happen. They may happen to your staff or even to your customers.

General liability insurance takes care of any common injuries that happen in your restaurant. It’s also the first type of insurance you’d want to get for your restaurant. This includes slips and falls, or even illnesses that may or may not have occurred due to the food you have served.

General liability insurance protects you by covering all costs related to the injury. With lawsuits as common as everyday complaints, it’s important that you secure your general liability insurance.

For a packaged or bundle general liability insurance, you can secure your restaurant insurance at Next Insurance. A bundle of general liability insurance includes coverage on physical injury, medical payments, advertising harm, and even property damage.

2. Property Insurance

Events that cannot be controlled are a business owner’s greatest fear. What’s even worse is the cost that comes after for recovery from a

calamity. In case of fire or vandalism, property insurance will come to your rescue. Some insurance companies cover natural disasters such as floods and earthquakes, and some do not unless it’s at an additional cost, but getting one is necessary if you don’t want to go out of business when calamity strikes.

Property insurance takes care of any cost related to the damage or loss of property due to natural calamities and even theft or robbery.

On a related note, in case your business gets interrupted by a natural disaster, you can also secure a business interruption insurance in addition to your property insurance. This provides your restaurant continued income in case your operations are forcibly suspended. Cost coverage includes rental payments, workers’ wages, and even taxes.

With a business interruption insurance, you don’t have to worry about closing down or going bankrupt if you miss a few days of business operations.

Food trucks need commercial auto insurance

3. Commercial Auto Insurance

As a restaurant owner, you may not be thinking about road accidents often, but according to statistics, about 1.25 million people die in road crashes every year. The numbers are even more alarming knowing that by 2030, car accidents may be the fifth leading cause of death.

If your restaurant has a vehicle, it’s best to get insurance for it as well. It’s a good way to protect yourself from liabilities should there be any accidents. This covers physical injury and property/vehicle damage. Some insurance companies even offer coverage for uninsured motorists.

Commercial auto insurance also covers minor accidents such as breakdowns. You may not think about it a lot, but business interruptions due to vehicle problems happen and they can cost you valuable clients and/or thousands of dollars. Lawsuits may also even happen due to the delays caused by the accident. By getting commercial auto insurance, you prevent this from happening, ultimately saving you a lot of money.

4. Employee Coverage/Workers’ Compensation

Workers’ compensation insurance is required in almost every state. This isn’t a construction business or a heavy-labor business, but accidents may still happen at work.

Especially in the kitchen where many types of equipment may be considered hazardous, it’s best to secure workers’ compensation for when an unfortunate event such as an accident or injury happens. Not only does an employee coverage insurance protect you from liabilities or medical expenses incurred, your employee would also be able to receive a portion of their wages for the time they have been away from work due to the injury.


Running a restaurant can be overwhelming, but accidents and a few hiccups shouldn’t slow you down. Getting restaurant insurance helps you make sure your business would thrive no matter what kind of problem it encounters.