Key takeaways
- A restaurant carries more overlapping exposure than almost any other small business, property, liability, liquor, food spoilage, employees, and delivery.
- General liability and commercial property are the floor; liquor liability and food-contamination coverage are what most owners underestimate.
- In Texas, workers' comp is optional but skipping it removes key legal protections when a kitchen injury happens.
- Business interruption is what keeps payroll and rent covered while you're closed after a fire, flood, or equipment failure.
Few small businesses stack up as many overlapping risks as a restaurant. You’ve got a physical space full of equipment, a kitchen full of hazards, alcohol, perishable inventory, a payroll of hourly staff, and often a delivery vehicle or two. A generic policy won’t fit any of it. Here’s the coverage checklist we walk DFW restaurant owners through, line by line.
| Coverage | Why a restaurant needs it | Priority |
|---|---|---|
| General liability | Slip-and-fall and customer injury claims | Essential |
| Commercial property | Building, kitchen equipment, furnishings | Essential |
| Business interruption | Lost income while closed after a loss | Essential |
| Liquor liability | Dram-shop exposure if you serve alcohol | Essential if serving |
| Food contamination / spoilage | Inventory lost to outage or contamination | High |
| Workers’ compensation | Kitchen burns, cuts, slips | High |
| Commercial auto | Delivery and catering vehicles | If you deliver |
The restaurant coverage checklist
Start with the three essentials
Then the restaurant-specific lines
This is where restaurants differ from every other retail business. If you serve alcohol, liquor liability is essential, Texas dram-shop law can hold you responsible for an over-served patron, and general liability excludes it. Food contamination coverage protects the inventory you’d lose to a power outage or a contamination scare. Both are routinely underestimated until the loss happens.
The claims that close restaurants aren't usually the dramatic ones. They're the walk-in that fails over a long weekend, or the liquor claim nobody planned for.
Don't skip workers' comp
Frequently asked questions
At minimum: general liability, commercial property, and business interruption. Most restaurants also need liquor liability (if they serve alcohol), food contamination/spoilage coverage, commercial auto if they deliver, and workers’ compensation for kitchen and floor staff.
If you serve alcohol, it’s essential and often required by your lease or license. Texas dram-shop law can hold an establishment liable for harm caused by an intoxicated patron, an exposure general liability typically excludes.
Only if you carry the right coverage. Food spoilage or contamination coverage pays for inventory lost to a power outage, equipment breakdown, or contamination event, a standard property policy usually won’t.
Texas doesn’t mandate it for most private employers, but restaurants are high-injury environments, burns, slips, cuts. Going without it exposes you to injury lawsuits with no damage caps, usually a far bigger risk than the premium.
Want a second set of eyes on your coverage?
A free consultation with Kristi takes 30 minutes and gives you a clear picture of where you stand, no obligation.
Written by Kristi Howton
Founder, Infinity Group Insurance