TL;DRA typical full-service Southeast restaurant with $1.5M revenue and 20 employees pays $6K–$12K for a BOP, $2K–$5K for liquor liability, and $8K–$20K for workers comp (class code 9083). Total program: ~$18K–$35K/year. Bars pay 3–5x more on liquor due to dram shop exposure.
The restaurant coverage stack
- Business Owners Policy (BOP). Property + GL bundled. Includes business income (60–90 days typical).
- Liquor Liability. Separate from GL. Covers dram shop claims — serving an intoxicated person who then injures someone.
- Workers Comp. Class code 9083 (restaurants) or 9084 (bars/taverns). Rate varies by state.
- Spoilage. Food loss from refrigeration failure or utility interruption. Usually $10K–$50K sublimit.
- Equipment Breakdown. Walk-ins, hoods, ovens. Often bundled with property but verify.
- Employment Practices (EPLI). Harassment, wrongful termination, wage/hour claims.
- Cyber. POS systems + cardholder data. PCI fines can run $5K–$500K per incident.
Dram shop laws by state
| State | Statute | Typical Limit Required |
|---|
| Georgia | O.C.G.A. §51-1-40 (willful serving to noticeably intoxicated or underage) | $1M / $1M |
| Florida | §768.125 (habitual drunkard or minor) | $1M / $2M |
| South Carolina | Common law + §61-4-580 | $1M / $1M |
| North Carolina | §18B-305 (serving minors) | $1M / $1M |
| Tennessee | §57-10-102 | $1M / $1M |
Full breakdown: Liquor liability in the Southeast.
Workers comp for restaurants
Restaurant WC class codes are mostly 9083 (waiter/server/cook in full-service) or 9084 (bar focus). Kitchen-only operations may use 9079. GA base rate for 9083 runs about $1.65 per $100 payroll; with a clean mod that's roughly $6,000 WC premium on $400K payroll. Restaurant WC guide.
What carriers look for at underwriting
- >50% food revenue for standard markets (Acuity, Hartford) — under that, push to Jencap or Amwins
- No late-night bar (post-midnight) without additional premium
- Fire suppression (ANSUL) in hood; semi-annual cleaning documented
- No prior EPLI, liquor, or large GL claims
- Food handler certification program for all line staff
Food trucks and caterers
Food trucks need commercial auto + GL + product liability + workers comp — and often a separate "off-premises" endorsement for catering. Food truck insurance Southeast.
Carrier appetite
AcuityThe HartfordHanoverTravelersAmTrustJencap (bars)RT SpecialtyAmwins
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Get a Free Risk Review →Frequently Asked Questions
How much does restaurant insurance cost?
A full-service restaurant with $1.5M revenue pays about $18K–$35K/year total — BOP $6–12K, liquor $2–5K, WC $8–20K. Quick-service with no alcohol runs half that. Bars with late-night hours and heavy alcohol mix pay 3–5x more on liquor liability.
Do I need liquor liability if alcohol is less than 20% of sales?
You still need it if you serve any alcohol. Standard GL specifically excludes liquor-related claims. The limit can be lower ($500K instead of $1M) if alcohol is incidental, but carrying none is a financial suicide pact.
What's covered under food spoilage?
Contents (inventory) lost due to refrigeration failure, power outage, or contamination. Typical sublimits $10K–$50K. Requires proof of failure and usually 24–72 hours of outage minimum. Walk-in cooler failures are the #1 claim.
Is my pizza delivery driver covered?
Not under a standard BOP. You need hired/non-owned auto coverage added to the GL, and the driver needs their personal auto policy to have business-use acknowledgment. Otherwise a delivery accident is uninsured on both sides.
Do food trucks need the same coverage?
Close but with commercial auto as the anchor instead of BOP. Food trucks need: commercial auto ($1M), GL/product liability, workers comp if employees, spoilage/contamination, and often off-premises catering endorsement. Running two revenue streams (truck + catering) complicates premium.
What triggers an EPLI claim at a restaurant?
Wage/hour (tip pooling violations, overtime misclassification), sexual harassment between staff or manager-to-staff, wrongful termination of a server, discrimination claims from not promoting. Restaurants have the highest EPLI frequency of any small business class.