Business Owner’s Policy (BOP) bundles general liability, commercial property, and business interruption insurance at discounted rates. Average cost: $180 to $251 monthly ($2,160 to $3,010 annually) for restaurants. BOPs save significant money compared to purchasing separate policies. 

General liability within BOPs averages $900 annually, protecting against slip-and-fall claims averaging $30,000 to $50,000 each, customer injuries, property damage, and third-party bodily injury lawsuits. Commercial property coverage protects kitchen equipment, dining furniture, inventory, and building improvements valued at $100,000 to $500,000+ for typical full-service establishments.

Slip-and-Fall Protection requires particular emphasis for full-service restaurants. Over 1 million guests are injured annually from restaurant slip-and-fall incidents, with average claims reaching $11,000. 

Court settlements typically range from $10,000 to $50,000 for standard injuries, escalating to $50,000-$200,000+ when surgery becomes necessary. Contributing factors include wet floors from spills, uneven surfaces, poor lighting in dining areas, and high customer traffic volumes. Establishments in high-traffic urban areas face higher premiums than suburban locations due to increased claim frequency.

Workers’ Compensation Insurance averages $600 to $2,000 annually depending on state regulations and employee count. Full-service restaurants typically employ 10 to 30 staff across front-of-house (servers, hosts, bartenders) and back-of-house (cooks, prep staff, dishwashers) positions. 

Workers’ comp rate: $1.06 per $100 of payroll. Kitchen injuries including burns, cuts, and slips consistently rank as top causes of restaurant claims. Strains also account for a considerable amount of claims.

Liquor Liability Insurance becomes essential for establishments serving alcohol. Full-service restaurants with moderate alcohol sales (20-30% of revenue) average $3,000-$4,000+ annually for liquor liability coverage.

Bars and establishments deriving 50%+ revenue from alcohol face reclassification requiring $4,000+ annual premiums. Coverage protects against dram shop liability, over-service claims, and alcohol-related incidents occurring both on-premises and after patrons leave. Establishments with documented responsible alcohol service training qualify for premium discounts.

Food Contamination & Spoilage Coverage protects against foodborne illness claims and inventory loss. The annual costs are typically $200 to $500.

Coverage addresses contamination from improper food handling, power outages causing spoilage, equipment failures destroying inventory, and foodborne illness outbreaks. Business interruption from contamination events can exceed $50,000 per incident when including medical expenses, legal fees, health department fines, and temporary closure costs.

Equipment Breakdown Coverage protects specialized kitchen equipment including commercial ovens, refrigeration systems, hood systems, and POS equipment. Equipment breakdowns represent the most frequent type of restaurant insurance claim. 

Walk-in cooler failures can destroy $5,000 to $25,000 in inventory within hours. This type of coverage typically costs $200 to $400 annually but prevents devastating financial losses from equipment replacement and inventory destruction.

Employment Practices Liability Insurance (EPLI) addresses wrongful termination, discrimination, harassment, and wage disputes. Full-service restaurants with 15+ employees face elevated EPLI exposure. 

Coverage typically costs $1,200 to $3,000 annually. High turnover within the restaurant industry creates increased hiring/termination activity and corresponding claim potential. Legal defense costs alone can reach $50,000 to $150,000 before settlements.