February 11

Small Restaurant Insurance Cost: Get All Details.

6 Mins Read

Last Updated: January 28, 2022

The cost of Small Restaurant Insurance varies depending on a number of factors, including the size and location of the restaurant. Small restaurants that are located in high-risk areas can face higher insurance premiums than those that are located in low-risk areas. Small restaurants with more expensive food items will also be charged more for their insurance coverage. To find out how much Small Restaurant Insurance would cost for your business, fill out our quick form to get a quote from one or more leading providers! 


Small Business Insurance Coverage for Restaurants: How Small Is Small? 

This Small Restaurant Insurance coverage may be purchased on Small Businesses that have up to 100 employees, are engaged in an approved industry, and have a minimum of $500,000 annual revenue. Small restaurant insurance is designed for small restaurants with the capacity of seating less than 50 patrons at one time. 

3 Factors that Affect the Cost of a Small Restaurant Insurance:

1. Your Insurance Limits 

The Small Restaurant Insurance limits that you choose for your business will have a direct impact on the cost of coverage. Higher limits mean higher premiums, while lower limits mean lower costs. More valuable items in your restaurant such as expensive kitchen equipment and furniture will require higher Small Restaurant Insurance Limits to cover them against losses or damages caused by fire, theft, vandalism. 

2. Size of Your Business 

The Small Restaurant Insurance cost varies depending on the size of your business. Smaller businesses naturally have a lower Small Restaurant Insurance premium than larger ones because they pose less risk to insurance companies. A small, locally-owned restaurant that faces limited competition is also likely to pay low premiums as compared with other restaurants in its area simply due to its location and target. 

3. Location of Small Restaurant 

The Small Restaurant Insurance costs for a business located in the suburbs are significantly lower than that for an urban restaurant. Businesses located in high-risk areas such as cities and downtowns may also face higher premiums because they are more likely to face losses or damages from theft, accidents, and natural disasters like fire. Small Restaurant Insurance providers generally favor these locations because they are seen as having fewer risks associated with them, which leads to lower premiums. 

Frequently Asked Questions

Q. What type of insurance is required for a restaurant?

Restaurant owners should look into commercial property insurance, which can cover both the physical structure and the contents inside.

Q. How much money do I need to open a small restaurant?

For a leased building, the average restaurant launch cost is $275,000, or $3,046 per seat. If you wish to own the building, up the price to $425,000, or $3,734 per seat.

Q. How does restaurant insurance work?

General liability insurance is required by a restaurant to cover bodily injury and property damage claims resulting from events such as slips and falls.


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