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The 5 policies most food businesses actually need

"Restaurant insurance" sounds like one thing to buy. In practice a food business usually needs several coverages working together. Here are the five that come up most.

1. General liability

A customer slips, gets hurt, or their property is damaged. GL is the baseline most leases and permits require, and the foundation everything else sits on.

2. Property coverage

Your build-out, kitchen equipment, furniture, and inventory — against fire, theft, and other covered losses. A hood fire or a break-in gets expensive fast. Often bundled with GL in a business owner's policy (BOP).

3. Liquor liability

If you serve alcohol, GL almost certainly won't cover an alcohol-related claim. Liquor liability is a separate — and usually required — coverage. See our liquor liability article for how it works.

4. Workers' compensation

Covers your staff when they're hurt on the job — burns, cuts, slips. Arkansas generally requires it once you have three or more employees; Minnesota has no threshold at all — one employee triggers it. Kitchens get people hurt; this is the coverage for it.

5. Commercial auto (if you deliver or cater)

Using vehicles for the business — delivery, catering runs — needs commercial auto. Personal policies often exclude business use, and a delivery accident on a personal policy can be denied. See our restaurant insurance page.

Worth adding: equipment breakdown and food spoilage — the walk-in dies overnight and takes your inventory with it. See our spoilage article. One policy rarely covers all of this; a good setup layers them so there's no gap.

Opening or reviewing a food business?

Tell us the concept — sit-down, bar, truck, catering — and we'll build the coverage stack that fits.

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