What Insurance Does a Restaurant Actually Need? A Florida Owner’s Guide

Running a restaurant is more than serving great food and keeping customers happy. Behind the scenes, it’s about managing risks, protecting your employees, and making sure one unexpected incident doesn’t wipe out everything you’ve built.

As Florida restaurant insurance specialists at Fortified Insurance Group, we’ve worked with first-time operators and seasoned owners opening their tenth location. The same questions always come up:

• What insurance does a restaurant actually need?
• Which coverages are truly essential and which are “nice-to-have”?
• How much should I expect to pay?

Let’s break it all down in plain English so you know where to prioritize your budget and how to keep your restaurant protected.

The Core Insurance Policies Every Restaurant Should Carry

1. General Liability Insurance (Non-Negotiable)

This is the foundation of your protection. In fact, most landlords won’t lease you a space unless you can show proof of general liability coverage.

What it covers:

• Slip and fall accidents (the classic restaurant risk).
• Food poisoning or allergic reactions.
• Customer fights or altercations that result in lawsuits.
• Negligent security claims.

Without it, even one lawsuit could cripple your restaurant financially. Think of this as your restaurant’s seatbelt—you don’t drive without it.

2. Workers’ Compensation (Legally Required in Florida)

Florida law requires workers’ comp once you have five or more employees. Miss this requirement and you could be hit with a stop-work order, fines, and penalties that can sink your business.

What it covers:

• 66% of lost wages for injured employees.
• Medical expenses and rehab.
• Lawsuit protection if an employee gets hurt on the job.

Restaurant work is hands-on: hot kitchens, sharp knives, heavy lifting. Injuries happen. Without workers’ comp, you’ll be footing the bill—and trust us, those medical bills add up fast.

3. Liquor Liability (If You Serve Alcohol)

If your restaurant sells beer, wine, or spirits, this coverage is a must.

Why? Because if a customer leaves your restaurant intoxicated and causes harm—whether that’s a car accident or a fight—you could be held responsible. And don’t assume general liability covers it. Most insurers specifically exclude alcohol-related incidents without liquor liability.

Even if you sell just one beer or glass of wine, get this policy. It’s that important.

4. Commercial Property Insurance

Your restaurant is more than just four walls—it’s your equipment, furniture, fixtures, and everything that makes service possible. Property insurance protects you against losses from:

• Fire
• Theft
• Storm or hurricane damage (especially critical in Florida)

Most landlords require property coverage to ensure you can at least cover several months of rent if disaster strikes. While it may not be as urgent as liability or workers’ comp, it’s still essential.

5. Employment Practices Liability Insurance (EPLI)

This is one many owners overlook—until it’s too late. EPLI covers claims related to:

• Sexual harassment
• Wrongful termination
• Retaliation claims
• Hostile work environment

Here’s the reality: in restaurants, where managers and staff work in close quarters, these claims are common. And even if the claim has no merit, defending yourself can cost thousands. EPLI steps in to cover legal defense and settlements.

6. Commercial Auto Insurance (If You Do Deliveries)

Do you offer catering or use a company vehicle for deliveries? Your personal car insurance won’t cut it. You’ll need commercial auto coverage for:

• Liability in accidents
• Damage to your vehicles
• Property damage to others

7. Business Interruption Insurance

Imagine this: a hurricane damages your restaurant and you can’t open for three months. How do you pay your staff and rent when revenue stops?

Business interruption insurance helps cover:

• Lost income during downtime
• Payroll
• Ongoing expenses like rent and utilities

In Florida—where hurricanes and storms are a fact of life—this coverage can mean the difference between closing for good and surviving.

8. Umbrella Liability Insurance

Umbrella coverage is like an extra safety net. If a lawsuit exceeds your general liability or liquor liability limits, umbrella insurance kicks in to cover the rest. For restaurants with larger operations, multiple locations, or higher foot traffic, it’s a smart add-on.

9. Food Contamination / Product Liability Insurance

If your food causes illness, or if contamination forces you to shut down, this coverage protects you from lawsuits and related expenses. In an industry where food safety is critical, this one’s worth considering.

Which Insurance Types Should You Prioritize?

We get it—budget matters, especially if you’re just opening your first location. If you need to prioritize, here’s how most Florida restaurant owners should rank their coverage:

1. General Liability – You literally can’t operate without it.
2. Workers’ Compensation – Required by law if you have employees.
3. Liquor Liability – If you sell alcohol, this moves up the list.
4. Property Insurance – Protects your physical space and equipment.
5. EPLI – Covers employee-related claims, which are more common than many owners realize.
6. Business Interruption – Essential in Florida due to storm risk.
7. Commercial Auto – If you deliver or cater.
8. Umbrella & Food Contamination Coverage – Smart to add as you grow.

How Much Does Restaurant Insurance Cost in Florida?

Here’s the million-dollar question: What’s this all going to cost me? The short answer: it depends.

Premiums are influenced by:

• Size of your restaurant (square footage, seating capacity).
• Annual sales (food and alcohol revenue).
• Number of employees and payroll size.
• Whether you serve alcohol (always raises risk).
• Location (beachfront vs inland, hurricane zones).
• Claims history and safety record.
• Coverage limits and deductibles.

Ballpark Estimates:

• General Liability Only (no alcohol): $1,000–$4,000 per year.
• Small Restaurant with Liability + Workers’ Comp + Property: $4,000–$12,000 per year.
• Restaurants with alcohol sales, delivery vehicles, or higher revenues: Premiums increase significantly.

Remember: insurers rate restaurants largely based on sales volume. Your projected revenue drives your premium. If you estimate $500,000 in sales but actually bring in $1.5 million, expect your premium to adjust accordingly.

How to Keep Insurance Costs Down

The good news? You’re not powerless. There are proven ways to control your costs without cutting essential coverage:

1. Invest in Training – Food handler and alcohol awareness programs reduce claims.
2. Hold Regular Safety Meetings – Document them to show your insurer you’re proactive.
3. Install Safety Features – Fire suppression systems, proper ventilation, security cameras.
4. Work With a Specialized Broker – Don’t settle for a generalist agent who doesn’t understand restaurants. At Fortified Insurance Group, we know the industry inside and out.
5. Review Your Coverage Annually – As your restaurant grows, your insurance should evolve.

Why This Matters

Insurance isn’t just a box to check for compliance—it’s your restaurant’s lifeline when things go wrong. One lawsuit, one accident, or one storm could derail years of hard work.

That’s why working with a broker who specializes in Florida restaurant insurance is so important. At Fortified Insurance Group, our job isn’t just to sell you a policy—it’s to protect your:

• Business – So you can reopen after a storm or fire.
• People – With workers’ comp and EPLI.
• Reputation – By defending you against lawsuits and claims.

Next Steps for Florida Restaurant Owners

If you’re opening a restaurant—or already running one—don’t leave your insurance to chance.

Here’s what you should do next:

1. Schedule a Free Insurance Audit – Let us review what you have vs what you actually need.
2. Compare Quotes – Small tweaks in coverage or deductibles can save thousands.
3. Stay Compliant – Know Florida’s requirements for workers’ comp, liquor liability, and more.
4. Plan Ahead – Build in protections like business interruption and EPLI before you need them.

At Fortified Insurance Group, we’ve helped restaurants across Florida—from mom-and-pop diners to multi-location franchises—find the right coverage at the right cost.

Ready to protect your restaurant? Contact us today for a customized quote and let’s make sure you’re covered where it matters most.