How much liability coverage does a restaurant need?

3 Things to Know About Restaurant Liability Insurance

1. Start with a minimum of $1 million of liability coverage
2. Review your coverage annually
3. Adjust your coverage as your business grows and increases revenue.

Bumbling chef holds a pan on fire

Any business should have million dollars minimum of liability coverage. That’s the starting point. If you are a startup and you don’t have any other assets other than that restaurant, then a million dollars is usually sufficient. Sometimes landlords may require higher limits because their building is at risk.
It is important to review coverage each year. If you are growing and your revenue is increasing, you want to make sure your liability limits are staying in line with the growth of your business. As your Revenue increases, you will want to have your liability limits increased as well.
If you’re making $5 million a year in revenue, you should have much higher limits than $1 million. You have got to think about what you have to lose. If there was a lawsuit against you, what have you got at risk?

If you want to make sure your insurance rates march your experience, give us a call and we would be happy to evaluate your restaurant. Click Here to schedule a meeting directly.