Insurance for Texas restaurants
A restaurant has a kitchen fire risk, a slip-and-fall risk, a food risk and, if you serve alcohol, a liquor risk, all under one roof. The way your restaurant is set up changes what it costs to insure.
What to watch for
Franchise or independent. A new franchise often gets easier treatment because the system, the ordering and the training are already in place. A first independent restaurant is harder to place, especially for an owner coming from outside the industry.
Where the food comes from
Delivery, catering and who buys your ingredients all affect which coverage you need.
Alcohol
If you sell beer, wine or alcohol, you need liquor liability. Your bartender can do everything right and never over-serve, and you can still be named in a lawsuit for what a customer does after leaving.
Time in business
Many national carriers prefer three years or more in business. How you tell your story to the underwriter matters.
Coverage for this business
Every business is placed a little differently. These are the policies we talk through most often, and a conversation with Kristi will tell you which ones your business actually needs.
General liability
Customer injuries, slip and falls, and damage you cause to others.
Property and equipment
The building contents, kitchen equipment and spoilage.
Liquor liability
Claims tied to serving alcohol.
Workers' compensation
Injuries to your staff, which are common in a kitchen.
Commercial auto
Needed if you deliver or cater with business vehicles.
Five bars named in one lawsuit
A restaurant owner told me about a regular who stopped in for happy hour, then went on to four other bars. He caused an accident, and all five bars were named in the suit. The insurance carrier held a $1 million reserve while the trial played out. When you buy a policy, the carrier has to defend you until your limits are used up, and that $1 million pays for the attorneys as well as the injuries and property damage. If the judgment is more than your coverage, you still owe the difference. Does that make you think differently about your risk?
Questions we hear
The short versions of conversations Kristi has with business owners every week.
Why can a franchise cost less to insure?
In my experience, carriers like that a franchise already has processes and systems that lower the chance of a claim. It is a general pattern, not a rule, and each carrier decides for itself.
Do I need liquor liability if I only serve beer and wine?
Yes. If you sell beer, wine or any alcohol, you need liquor liability. Many leases require it too.
What if the customer drank somewhere else too?
You can still be named. When a customer visits several bars before an accident, every one of them can end up in the lawsuit.
What if my restaurant is brand new?
Some carriers want three years of history. A specialty broker knows which markets will write a new restaurant and how to present it.
Ready to have someone in your corner?
Book a free consultation. We’ll walk through your business, identify the gaps, and build a strategy that actually fits.