Owning a restaurant in Michigan can be very challenging, one way to minimize your risk is to get the proper insurance coverage, but how much does that cost? In the restaurant business, your income depends on the number of tables you fill up and there’s no guarantee you’ll be full every day. It doesn’t matter if you own a fine dining restaurant or a casual dinner, every purchase you make has to be planned appropriately.

General Liability Insurance for Restaurants

General Liability Insurance helps with lawsuit protection. Say a customer or delivery person is hurt on your property, General Liability covers the cost of the lawsuit. You can also check and see if your policy includes coverage for medical costs such as an ambulance ride. If you face a lawsuit over copyright infringement, damaged reputation, third-party property damage, or foodborne illnesses, you’re still covered with General Liability.

What does it cost?  General Liability insurance for a small Michigan restaurant costs between $529 and $6,097 in annual premiums.

Property Insurance for Restaurants

Property Insurance covers things the restaurant owns. This includes kitchen equipment, furniture, buildings, and other property. In the event of a fire, theft, windstorms, your insurance helps cover the cost to repair damage to your property.

What does it cost? For a small restaurant, Property Insurance can cost restaurants between $1,011 to $2,233 in annual premiums.

Business Owner’s Policy for Restaurants

A Business Owner’s Policy is also called a BOP. A BOP bundles General Liability and Property Insurance allowing small restaurants discounts on both. BOP’s may also include Business Interruption Insurance. Say you close your restaurant for repairs, you can cover costs you may lose during that period. Make sure you also ask your Compass Agent about supply chain coverage.

What does it cost? A BOP for a small restaurant can cost anywhere between $1,142 to $10,574 in annual premiums.

Worker’s Compensation Insurance for Restaurants

As a business owner, it’s important you can protect your employees from accidents and illnesses. Worker’s Compensation Insurance can help with this. Most state laws require the business to have Worker’s Compensation coverage. It covers medical expenses and lost wages for those injured on the job. The type of restaurant you own vastly changes the price of Worker’s Compensation.

What does it cost? Worker’s Compensation Insurance can cost anywhere from $1,050 to $8,143 for a restaurant in Michigan.

Commercial Auto Insurance for Restaurants

Your restaurant may own vehicles for catering and such. Commercial Auto Insurance protects your restaurant from medical, legal, and repair costs that involve your commercial vehicle.


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What does it cost? Commercial Auto Insurance can cost anywhere between $1,215 to $2,434 in annual premiums to a local Michigan restaurant.

Inland Marine Insurance for Restaurants

Despite how it sounds, Inland Marine Insurance doesn’t involve water. Inland Marine Insurance helps cover your property while it’s in transit. If your restaurant moves catering equipment to and from events, you want to make sure it’s protected in the event it’s damaged or stolen. Inland Marine Insurance can help make sure you’re covered.

What does it cost? Inland Marine Insurance can cost a Michigan restaurant anywhere between $350 and $750 in annual premiums.

Liquor Liability Insurance for Restaurants

If you plan on selling alcohol at your restaurant you must have a liquor license. Before you can apply for your liquor license, you need a Liquor Liability Insurance policy. States have laws holding restaurants accountable when they serve alcohol to an intoxicated customer who leaves and commits a crime, injures another individual, damages property, or causes other issues. If a lawsuit arises, the Liquor Liability Insurance helps cover the cost.

What does it cost? For a restaurant in Michigan, Liquor Liability Insurance costs anywhere between $386 – $2,780 in annual premiums.

Umbrella Insurance for Restaurants

If you’ve reached the limit of your liability on your General Liability, Employer’s Liability, or Auto Liability, having Umbrella Insurance allows you to pull an additional $1 Million in lawsuit coverage. If an incident occurs costing you $1.5 Million but your General Liability only covers you up to $1 Million, your Umbrella Insurance covers the remaining $500,000.

What does it cost? Umbrella Insurance costs a small Michigan restaurant anywhere from $400 to $2,403 in annual premium.

Compass Insurance Agency Has Michigan’s Back When It Comes To Proper Restaurant Coverage

Compass Insurance agents help make sure local Michigan restaurant owners have the right coverage for their specific restaurant needs. We also have the benefit of shopping for you through multiple insurance carriers, allowing us to find you the best coverage at the most affordable rate. To see how we can help you, call one of our commercial agents today at 616-965-6271 or get a quote on your restaurant policy here.