Why Is Restaurant Business Insurance So Important?

Insurance helps protect the restaurant business you've worked hard to build, while helping keep it moving forward. No matter how hard you try to make sure everything is perfect, problems happen, and we're here to help if they do. With us, you know you have an insurance company that always has your back. Because every restaurant, bar, cafe, and catering business has unique needs, we've put together restaurant insurance coverage built specifically for Michigan food and beverage owners.

Restaurant-Specific Coverages Worth Understanding

• Liquor Liability — for restaurants and bars licensed by the Michigan Liquor Control Commission (MLCC) to serve alcohol; covers claims arising from alcohol service that general liability typically excludes.
• Equipment Breakdown — covers mechanical or electrical failure of kitchen equipment like walk-in coolers, ovens, and refrigeration.
• Food Contamination / Spoilage — covers losses from power outages, equipment failure, or contamination that spoils inventory.
• Cyber Liability — covers exposure from point-of-sale systems, online ordering, and reservation platforms that store customer payment data.
• Employment Practices Liability (EPLI) — covers claims related to hiring, scheduling, and workplace disputes, common in an industry with high staff turnover.

What's the Best Small Restaurant Insurance I Can Get?

If you're in the food and beverage business, we recommend starting with a Business Owner's Policy (BOP). A BOP combines three general insurance coverages that are important to almost every business: General Liability, Commercial Property, and Business Income. Most restaurant owners with employees are also required to carry workers' compensation insurance.
Contact Adam Sciberras regarding current offerings and special offers for new insurance quotes, or request a quote online.

Restaurant Insurance Questions, Answered

What insurance does a restaurant need in Michigan?

Most Michigan restaurants need a combination of general liability, commercial property, business income, and workers' compensation insurance, often packaged as a Business Owner's Policy. Restaurants that serve alcohol typically also need liquor liability coverage, and many add equipment breakdown, food contamination, and cyber liability coverage depending on how the business operates.

Do Michigan restaurants that serve alcohol need liquor liability insurance?

Restaurants and bars licensed by the Michigan Liquor Control Commission (MLCC) to sell alcohol generally carry liquor liability insurance, since general liability policies commonly exclude claims arising from alcohol service.

What is a Business Owner's Policy (BOP) for a restaurant?

A BOP bundles general liability, commercial property, and business income coverage into a single policy. It's typically the starting point for restaurants, cafes, and caterers before adding restaurant-specific coverages like liquor liability or equipment breakdown.

Is workers' compensation insurance required for Michigan restaurants?

Michigan generally requires employers with one or more employees working 35 or more hours per week for 13 or more weeks a year, or three or more employees regardless of hours, to carry workers' compensation insurance. Most restaurants with staff meet this threshold.