Maximize Restaurant Survival With Exclusive Insurance Cost Breakdown
Key Components of Restaurant Insurance
1. **Property Insurance**: This covers damage to your physical assets such as the building, kitchen equipment, and furniture. The cost is influenced by factors like location, building size, and the value of the contents. On average, restaurant property insurance can range from $1,000 to $2,500 annually1.
2. **General Liability Insurance**: Essential for protecting against claims of bodily injury or property damage caused by your business operations. Costs typically range between $500 and $2,000 per year, depending on the size and nature of your restaurant2.
3. **Workers' Compensation Insurance**: Required in most states, this insurance covers medical expenses and lost wages for employees injured on the job. Premiums are calculated based on payroll and industry risk, averaging about $2.70 per $100 of payroll3.
4. **Business Interruption Insurance**: This provides coverage for lost income during periods when your restaurant is closed due to a covered peril, like a fire. The cost is generally a percentage of your property insurance premium, but it can be invaluable in maintaining cash flow during unforeseen closures4.