What is Restaurants Package?
A Restaurants Package (also called a restaurant insurance package or business owners policy for restaurants) bundles several coverages designed for food-service operations. It typically combines commercial property protection with commercial liability and other specialty coverages so owners don’t have to buy each policy separately. Many packages can be tailored with add-ons for equipment coverage, commercial auto exposure, and liquor or host liability depending on the operation.
Who needs it
Small independent restaurants, franchises, bars with food service, caterers, food trucks, and café operators commonly buy this coverage. Clubs, event operators, or venues that host food vendors also evaluate similar packages to manage spectator injury exposures and facility risks. Operations with significant customer foot-traffic or on-site cooking present higher liability and property exposures and usually prioritize a package policy.
What it typically covers
Standard package elements include commercial property coverage for building and contents, general commercial liability for customer injuries or third‑party property damage, and business interruption coverage to help replace lost income after an insured loss. Many programs also offer equipment breakdown, spoilage coverage for refrigerated goods, and optional liquor liability for establishments that serve alcohol. Some insurers include or offer endorsements for commercial auto exposure for delivery vehicles.
For examples of program options and carrier-level features, see the Restaurant Insurance Program by Colonial General Insurance Agency, Inc. and tailored solutions like the Fine Dining Restaurant Insurance Package.
Common exclusions or limitations
Typical exclusions can include intentional acts, criminal liability, certain flood or earthquake perils (often excluded or limited), and losses from undocumented equipment. Employment-related claims or participant accident exposures may be excluded unless separate employment practices liability or participant accident coverage is added. Underwriting factors often determine which endorsements are available to fill gaps.
Factors that influence cost
Premiums reflect location (crime and weather risks), protection features (sprinklers, fire suppression, hood systems), annual sales, payroll, menu risks (e.g., deep frying), claims history, and limits chosen. A high‑traffic downtown bistro with delivery vehicles will usually pay more than a small café with no delivery exposure. Insurers also review contractor relationships, food safety practices, and security measures as part of underwriting.
For a deeper overview of program structures and what a packaged solution can include, review this Restaurant Program Insurance page.
Proof of insurance & compliance
Restaurants often need certificates of insurance (COIs) to satisfy landlords, event organizers, or franchise requirements. Certificates show general liability limits, additional insured endorsements, and any required waiver of subrogation. Keep current COIs on file and confirm state or local licensing requirements with your broker.
How to get a quote
To get an accurate quote, insurers typically request details on annual sales, payroll, menu items, square footage, building construction, safety systems, and claims history. It helps to prepare recent loss runs and a list of high-value equipment. Get a custom quote and compare options by visiting https://completemarkets.com/quote/.
Risk scenario: a spilled deep-fryer oil causing a customer burn is a common example of why both liability and equipment protection matter.
Frequently Asked Questions
What liability limits should a restaurant carry?
Liability limits depend on your size, lease requirements, and whether you serve alcohol. Many businesses start with $1M per occurrence and $2M aggregate, but requirements vary; review limits with your agent.
Does the package include liquor liability?
Not always. Liquor liability is often an optional endorsement for establishments that serve alcohol. Confirm availability and limits with your broker.
How quickly can I get a certificate of insurance?
Once a policy is bound, most insurers or brokers can issue a certificate within 24–72 hours, though timing can vary by carrier and documentation needs.
Still have questions? Talk to a local insurance expert.