Profit margins for restaurants can be razor thin, so when shopping for insurance, it is important to find quality, affordable coverage. Using our proprietary rubric, we evaluated over 16 different insurers and determined the five best restaurant insurance companies.
- ERGO – Next Insurance: Best restaurant insurance provider
- Simply Business: Best for comparing quotes online
- FLIP: Best for cheap restaurant insurance
- Thimble: Best for seasonal and special event coverage
- Travelers: Best for restaurants with catering services
- Best Restaurant Insurance Companies Compared
- ERGO – Next Insurance: Best Restaurant Insurance Provider
- Next Insurance
- Simply Business: Best for Comparing Quotes Online
- FLIP: Best for Cheap Restaurant Insurance
- Thimble: Best for Seasonal & Special Event Coverage
- Travelers: Best for Restaurants With Catering Services
- How We Evaluated the Best Insurance Companies for Restaurants
- Frequently Asked Questions (FAQs)
- Bottom Line
Best Restaurant Insurance Companies Compared
| Quote Process | Hours of Operation | Policy Purchase Process | Financial Rating | |
|---|---|---|---|---|
 | Online or over the phone | Monday–Friday, 6 a.m.–5 p.m. Pacific Time | Online or over the phone | A- (Excellent) |
| Get a Quote from ERGO - Next Insurance | ||||
 | Online or over the phone | Monday–Friday, 8 a.m.–8 p.m. Eastern Time | Online or over the phone | A- (Excellent) to A++ (Superior) |
| Get a Quote from Simply Business | ||||
 | Online or over the phone | Monday–Friday, 8 a.m.–8 p.m. Mountain Time | Online or over the phone | A+ (Superior) |
| Get a Quote from FLIP | ||||
 | Online or over the app | Monday–Friday, 9 a.m. to 6 p.m. ET | Online or through the app | A- to A (Excellent) |
| Get a Quote from Thimble | ||||
 | Through a local agent | 24/7 call center | Through a local agent | A++ (Superior) |
| Get a Quote from TravelersProvided by Simply Business | ||||
ERGO – Next Insurance: Best Restaurant Insurance Provider
Standout Features
- Custom insurance packages are specifically designed for the food and beverage industry.
- Its commercial app manages your policy and any claims 24/7.
- You can create and share a certificate of insurance (COI) instantly with any landlord or vendor.
- Restaurant insurance package takes the industry into account by automatically covering employment practices liability insurance (EPLI) or liquor liability with its general liability insurance.
Financial Stability: Founded in 2016, ERGO – Next Insurance is a fairly new insurance company. However, it has maintained a solid financial position while growing, and ERGO – Next Insurance’s AM Best rating is A- (Excellent).
ERGO – Next Insurance tops our list of the best insurance companies for restaurants. It is a direct-to-consumer carrier with a heavy emphasis on integrating the convenience of technology into its policyholder services. As a dedicated insurer for small businesses, one of the key industries it has chosen to focus on is food and beverage, and it currently insures over 10,000 restaurants.
For restaurants, ERGO – Next Insurance offers tailored packages that include all the essential coverages: business owner’s policy (BOP), general liability, professional liability, and workers’ compensation.
In addition, the company has a resource center for restaurants that are starting out. Free resources include tips, license permits, health and safety posters, and POS reviews and recommendations.
Cost & Coverage
Usually, ERGO – Next Insurance will offer a quote with three options or tiers of coverage. The tiers are broken down into basic, premier, and deluxe. While researching this article, we received the following quote:
- Basic: $62.34 monthly with $1 million in general liability, $25,000 for EPLI, and $25,000 for foodborne illnesses
- Premier: $255.55 monthly with the same coverages as basic but also $65,000 in property coverage and equipment breakdown
- Deluxe: $300.42 monthly with $2 million in general liability and $50,000 in EPLI. The property coverage is the same as the premier, but it also includes $10,000 in utilities coverage.
Customer Satisfaction & Convenience
ERGO – Next Insurance has strong customer reviews on its website.[1] Currently, there are over 3,500 reviews with an average of 4.5 out of 5 stars. The National Association of Insurance Commissioners (NAIC) tracks complaints filed against insurance companies at the state level, and ERGO – Next Insurance’s complaints are below the national average.
The provider has an app where you can manage your policy, file a claim, and create and instantly share a COI. The app functions like a 24/7 call center for its policyholders and is available on both iOS and Android. But if you have an emergency and want to speak with someone immediately, there is no way to do so.
Simply Business: Best for Comparing Quotes Online
Standout Features
- You can compare quotes online for general liability, workers comp, and property insurance.
- You can update the coverage limits and get real-time updated quotes for your coverage, allowing you to save on the right type of insurance.
- You can purchase restaurant insurance online or call and speak with a dedicated agent for advice.
Financial Stability: Simply Business is an online digital broker that works with multiple carriers with top ratings. The quote for this article came from Harborway Insurance, whose policies are underwritten by Spinnaker Insurance. Spinnaker has a rating of A- (Excellent).
Digital broker Simply Business works with several top-rated carriers to offer small business insurance. Its model is simple: enter some basic information about your business, and in just minutes, it will generate quotes for you to compare in real-time. Each quote has detailed information on both the coverage and the company that will be underwriting the policy. From there, you can make adjustments, call to speak with someone, or just purchase the policy online.
Cost & Coverage
While Simply Business usually generates multiple quotes, we received one quote for this article for a restaurant. The policy was for a BOP and through Harborway Insurance, priced at $96.66 monthly or $1,160 annually. It included general liability with an aggregate limit of $2 million and $50,000 in property coverage with a $500 deductible.
Customer Satisfaction and Convenience
In addition to the ease of purchasing insurance online and being available nationwide, Simply Business provides the insurance documents and a certificate of insurance immediately upon purchase of a policy.
Its customers are happy with their experience. It has 4.3 out of 5 stars on Trustpilot[2] from over 4,200 customer reviews.
FLIP: Best for Cheap Restaurant Insurance
Standout Features
- The insurance program is designed for the food industry with key, core policies including workers’ compensation, general liability, and liquor liability.
- A simple and easy quote system guides you through the process in 10 minutes or less.
- The policy dashboard lets you manage your policy and download policy documents.
Financial Stability: FLIP works with the Great American Insurance Company (GAIC) for its food program. AM Best rated GAIC an A+ (Superior).
FLIP, short for Food Liability Insurance Program, is a small business insurance program targeting the food industry, specifically food trucks, food carts, and food vendors. The way FLIP works is that it has curated coverage to target what those businesses need in the food sector.
When you purchase a policy, you are given several coverage options that you can choose to add to build out the overall policy for your business. The process is quick, simple, and affordable, with the most popular policy starting at $299 annually.
Cost & Coverage
FLIP’s insurance is at a great price. The starting policy is $299 a year, or you can purchase a FLIP Pro + Liquor policy for $425 annually.
The base policy comes with a general liability of $2 million aggregate and a product liability of $2 million aggregate. It also carries $300,000 in damage to rented premises and between $5,000 and $10,000 for inland marine and property coverage.
Customer Satisfaction & Convenience
FLIP is available in all 50 states. You can email or chat with a representative, and if you wish to call, its hours of operation are Monday through Friday, from 8 a.m. to 8 p.m. MST. Once you become a customer, you’ll have access to an online dashboard to manage your policy, including filing a claim or creating and sharing a COI.
Thimble: Best for Seasonal & Special Event Coverage
Standout Features
- The commercial app lets you manage your policy and claims and create a COI.
- You can get a quote and purchase a policy online or over the app, including a quote and purchase for short-term coverage.
- Core policies, including workers’ comp, are available for businesses.
Financial Stability: Thimble is a managing general agent (MGA) that works with over a dozen carriers with ratings from A- to A (Excellent).
Thimble Insurance is a dedicated insurer of small businesses, and one of its standout features is its short-term liability coverage. Its app makes creating and sharing a COI easy and fast, an added bonus for any type of food business that works in the special event space.
You can also get a quote and buy a policy through the app. This last feature really made it stand out as an ideal option for restaurants that run seasonally (excluded by a number of carriers) or for those who serve food at several special events off-site and need coverage.
Cost & Coverage
For this article, we received a quote for a three-day catering event at a hotel. The policy was a $1 million general liability policy that included liquor liability insurance. This policy costs $382 for three days of coverage.
A nice feature of this provider is its same-day coverage—even for a special event. So, if you need coverage at the last minute, odds are you can purchase it through Thimble.
For restaurants, Thimble offers a BOP, general liability, workers’ comp, and professional liability.
Customer Satisfaction & Convenience
Thimble is a newer company, but its offerings continue to expand. It is currently available nationwide.
However, it is nearly impossible to reach anyone over the phone, but that hasn’t impacted customer reviews. On Trustpilot,[3] there are over 1,700 reviews with 4.5 out of 5 stars.
Travelers: Best for Restaurants With Catering Services
Standout Features
- It offers coverage for restaurants with high annual revenue.
- It has an industry-specific policy package with over 40 enhancements.
- It is available nationwide and has strong customer service.
- It has over 100 years of experience in the property and casualty insurance space.
Financial Stability: Travelers is a 150-year-old global insurance company. It has a history of proven financial reliability and AM Best’s rating of Travelers A++ (Superior).
Travelers is an established carrier with over 100 years of experience in the insurance industry. It sells commercial insurance to small, middle-market, and enterprise-level companies. For restaurants, it has developed a policy package called IndustryEdge®. Travelers’ target industries are those in fine dining, family style, fast casual, or restaurants with catering services.
Many providers will not cover off-site functions or restaurants with catering being more than 30% of the business, but Travelers will, making it a great option for restaurants that cater a lot. Note that it prefers businesses that are not open after midnight.
Cost & Coverage
To get a quote, you will need to contact an agent in your area who works with Travelers. It does offer a way to find one through a locator using your ZIP code.
Its IndustryEdge® package offers coverage for businesses with a maximum yearly revenue of up to $10 million. Some features include an optional liquor liability endorsement and $5,000 for food spoilage coverage.
Customer Satisfaction & Convenience
Travelers is available in all 50 states and maintains a 24/7 call center for both claims and customer service. Online, you can manage your policy, but the services are much more limited than some other options on our list.
The complaints tracked by the NAIC are lower than expected. It also works with independent agents to sell insurance, providing more widespread availability for its services.
How We Evaluated the Best Insurance Companies for Restaurants
Drawing on over a decade of experience working in small business insurance, I determined the best restaurant insurance companies using our in-house proprietary evaluation system. We have developed separate and distinct systems for insurance providers and brokers.
In both cases, we evaluated them, focusing on the customer’s needs. We paid particular interest to convenience, financial ratings (AM Best), customer service, the types of policies offered, and the overall experience as a policyholder wth a specific provider or broker.
Frequently Asked Questions (FAQs)
Are COVID-19 pandemic-related shutdowns covered?
Unfortunately, most insurance carriers have an exclusion for communicable diseases written into their policies. This was never really an issue until COVID-19 when many businesses discovered there was no coverage for their COVID-19-related claims. However, as with terrorism exclusions post-9/11, the government is looking into some sort of government-backed program for pandemic-related coverage for insurance going forward.
What insurance is needed for my delivery drivers?
Restaurants should ensure their general liability carries the hired non-auto (HNOA) endorsement. This will help protect your delivery drivers’ liability if they are involved in an auto accident and it is the delivery driver’s fault. It will not, however, cover any damage to the vehicle itself, and your drivers should be aware that their policy may also deny coverage.
What is restaurant insurance?
Restaurant insurance is a policy, or combination of policies, that protects a business owner from the financial loss of a claim. This can include liability insurance like general liability or first-party coverage like commercial property. These are also the two most common policies for a restaurant. Nearly every state mandates workers’ compensation insurance, so if you have employees, then consult your state’s requirements for it.
How do I start a restaurant?
If you’re thinking about starting a restaurant, it is important to ensure you’ve got a well-thought-out plan that you can execute. The first step will be to research your market and consider the location options. The next step will be to choose a name and a concept. These are a few of the steps to start a restaurant.
What is a certificate of insurance?
A certificate of insurance (COI) is proof of insurance. However, often, a landlord or event space will want to see a COI or even be added as an additional insured. In those situations, it is helpful to have a carrier that makes it easy to change and request a COI.
Bottom Line
Owning a restaurant can be stressful: your hours are often nontraditional, and your profit margins may be slim. While insurance can be stressful, it doesn’t have to be that way. We’ve done the work for you and reviewed the best restaurant insurance companies to find the top options.
ERGO – Next Insurance is our leading recommendation because of the range of coverages, convenience, and tailored policy packages. You can see if it is right for you in ten minutes or less.
Visit ERGO – Next Insurance for a Quote
User review references:
[1]ERGO – Next Insurance
[2]Trustpilot | Simply Business
[3]Trustpilot | Thimble
