Duncan & Stoker
Commercial Insurance Solutions Inc.

What types of insurance do I need for my

bar or restaurant?

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Bar and restaurant owners typically need general liability insurance for customer injuries, commercial property insurance for the building and equipment, liquor liability for alcohol-related incidents (especially for bars), and workers’ compensation if you have employees. Additional policies like business interruption or food spoilage coverage may also be necessary.​

What does liquor liability insurance cover?

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Liquor liability insurance covers claims related to alcohol-related incidents, such as injuries, property damage, or accidents caused by intoxicated patrons (e.g., DUIs or fights). It includes legal defense costs and is critical for bars or restaurants serving alcohol.​

Is workers’ compensation insurance required

for my staff?

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Yes, most states require workers’ compensation insurance if you have employees, even part-time, to cover workplace injuries or illnesses. Penalties for non-compliance include fines or business closure, so check state-specific laws.

Do I need business interruption insurance?

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​Business interruption insurance covers lost income and ongoing expenses (e.g., rent, payroll) if your bar or restaurant closes temporarily due to a covered event like a fire. It’s highly recommended to maintain financial stability during closures.

 

What is a certificate of insurance, and why do I need to provide it?

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A certificate of insurance proves your business has active coverage, detailing policy types and limits. Landlords, lenders, or liquor licensing boards may require it to verify compliance with lease terms or regulations. Your insurer can provide this document.

How much does insurance for a

bar or restaurant cost?

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Premiums typically range from $1,000 to $3,000 annually for general liability, with total costs for comprehensive coverage (including property, liquor liability, and workers’ comp) ranging from $5,000 to $20,000, depending on location, size, revenue, and alcohol sales.​​

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Does general liability insurance cover

customer injuries?

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Yes, general liability covers customer injuries (e.g., slips, falls, or food poisoning) and property damage caused by your operations. It also covers legal defense costs for related lawsuits but excludes alcohol-related claims or employee injuries.​​​

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What does property insurance cover for my restaurant or bar​

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Commercial property insurance covers damage to your building, equipment, and inventory from perils like fire, theft, or vandalism. It excludes floods, earthquakes, or food spoilage, which require separate endorsements or policies.

Does my insurance cover food spoilage or

equipment failure?

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Standard property insurance typically excludes food spoilage or equipment breakdowns (e.g., refrigerator failure). You’ll need a spoilage endorsement or equipment breakdown coverage to protect perishable inventory and critical systems.

Do I need cyber insurance for my

restaurant or bar?

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If you use POS systems, online reservations, or store customer data, cyber insurance is recommended to cover losses from data breaches, hacking, or credit card fraud. These risks are increasing in the hospitality industry, making cyber coverage valuable.