Best Restaurant Insurance of February 2023

Huckleberry wins with comprehensive coverage and good pricing

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Running a restaurant comes with inherent risks. For example, a server could accidentally spill coffee on a customer’s laptop or a kitchen fire could bring operations to a screeching halt. If you don’t want to cover the costs of mishaps out-of-pocket, restaurant insurance can help. Restaurant insurance generally refers to a business owner’s policy (BOP) which includes commercial property coverage, general liability, and often business income coverage (aka business interruption insurance). Additionally, owners may need workers’ compensation, commercial auto coverage, and other endorsements like liquor liability, equipment breakdown coverage, and food contamination insurance. 

Best Restaurant Insurance of February 2023

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Best Restaurant Insurance of February 2023
Best Restaurant Insurance of February 2023

Best Overall : Huckleberry

Investopedia's Rating
4.9

Huckleberry Insurance logo

Huckleberry

Why We Chose It

Huckleberry offers a convenient restaurant-specific endorsement that packages spoilage coverage insurance, food contamination coverage, and ordinance or law equipment coverage, among others. 

Pros & Cons
Pros
  • BOPs include business income coverage

  • Restaurant-specific endorsement

  • No BOP revenue limits

  • Liquor liability, workers compensation, and commercial auto available

Cons
  • Monthly payments not offered by all carriers

  • Not a direct insurance provider

Overview

Huckleberry is an online insurance broker that makes it easy for restaurant owners to get business insurance. You can visit the company’s website to request a quote, apply, and get coverage—all within a few minutes. However, if you sign up, Huckleberry won’t be your insurance carrier. Instead, you’ll be connected with a reputable carrier like Chubb Limited, Markel Corporation, or AmTrust Financial Services. (The carrier you get will depend on where you live and the type of coverage you choose.) 

When it comes to coverage, Huckleberry offers a comprehensive business insurance lineup. Huckleberry’s BOP includes property insurance and general liability, along with business income coverage. Plus, you can get workers’ compensation insurance, commercial auto, and a laundry list of essential restaurant coverages, which is where Huckleberry really shines. It offers a restaurant-specific endorsement that packages spoilage coverage and food contamination coverage, among others. You can also purchase equipment breakdown coverage and liquor liability insurance. 

Best for Quick Coverage : NEXT Insurance

Investopedia's Rating
4.6

Next Insurance

Next Insurance

Why We Chose It

NEXT offers comprehensive coverage for small restaurants and a quick online application process. 

Pros & Cons
Pros
  • Quick online quote and application process  

  • High BOP revenue limits 

  • Low-cost liability coverage (for some businesses)

  • Car insurance and workers’ comp discounts

Cons
  • Limited endorsement options

  • Lower financial strength rating than most competitors

Overview

Through Next, you can get a host of essential restaurant coverages, including commercial property, general liability, liquor liability, and workers compensation insurance. The online application process can be completed in less than 10 minutes, and you can get same-day coverage after submitting your credit card payment. Based on your application, Next presents you with three custom policy packages from which to choose. However, you can also talk to a Next agent in your area for more customized service if you prefer. 

While NEXT’s financial strength rating with AM Best rating is lower than many competitors, sitting at an A- (Excellent), it’s still considered to have an excellent ability to pay claims. The company offers competitive premiums, plus you can save up to 25% via various discounts, including a 10% discount when you bundle multiple policies. Overall, it’s a great option if you’re looking to get comprehensive restaurant insurance as soon as possible. A Next BOP for restaurant insurance starts at $459 per year.

Cheapest Coverage : FLIP (Food Liability Insurance Program)

Investopedia's Rating
4.6

Food Liability Insurance Program (FLIP)

Food Liability Insurance Program (FLIP)

Why We Chose It

FLIP specializes in affordable insurance for small food businesses and does it well. 

Pros & Cons
Pros
  • Policy packages start at $299 per year

  • Discounts available

  • Specializes in insurance for food business owners

  • Same-day coverage

Cons
  • No business income insurance or workers’ comp

Overview

Of the 19 insurers we reviewed, FLIP has the lowest annual premium for its food liability insurance policy, at $299. It was also one of the few companies to offer discounts. However, it doesn’t provide as many coverage options as most of the other insurers. 

For the $299, you get general liability insurance coverage and product liability up to $2 million, inland marine up to $10,000, and rented property insurance up to $300,000. Add-on options include professional liability, cyber liability, and a trailer endorsement. On the downside, there’s no business income coverage, no workers compensation insurance, and no standard commercial property coverage. That said, if the coverage suits your needs, FLIP can be a bargain.

Best for Financial Stability : BiBerk

Investopedia's Rating
4.6

biBERK

biBERK

Why We Chose It

AM Best gives BiBerk its highest financial stability rating (A++), the company is backed by the Berkshire Hathaway Insurance Group, and it offers comprehensive restaurant insurance coverage for small and large food businesses.

Pros & Cons
Pros
  • A+ (Superior) financial strength rating

  • No BOP revenue limit

  • Wide range of policy types and endorsements

Cons
  • BOP only available in 28 states

  • GL only offered in 27 states

Overview

When it comes to AM Best’s financial strength ratings, BiBerk earned the highest possible mark—an A++ (Superior). In other words, AM Best believes that BiBerk has a superior ability to meet its payment obligations. 

As for BiBerk’s coverage, it offers a generous business owner’s policy (BOP), which includes commercial property insurance, general liability insurance, and business income (aka business interruption) coverage. Additionally, you can customize your policy with one of several available endorsements, including liquor liability insurance, food spoilage insurance, and equipment breakdown insurance. Further, workers’ comp, commercial auto, professional liability, and umbrella insurance are available. On the downside, BiBerk isn’t available nationwide, so you’ll need to check the availability in your state. 

Most Flexible Coverage : Thimble

Investopedia's Rating
4.6

Thimble Insurance

Thimble Insurance

Why We Chose It

Thimble is a convenient and affordable option for event-based food businesses or those that have intermittent coverage needs. 

Pros & Cons
Pros
  • Occurrence-based coverage

  • Fewer customer complaints than expected 

  • Comprehensive lineup of restaurant business insurance offerings

  • On-demand policies starting at $5 per hour

Cons
  • No commercial auto coverage

  • Not a direct insurer

Overview

Thimble specializes in helping small food business owners get small business insurance policies (underwritten by Markel or Chubb). Like others on this list, the company streamlines the whole process. You can get a quick quote online, purchase the policy, and print out a certificate of insurance within a few minutes. But what makes the company stand out is its on-demand coverage options and occurrence-based coverage. 

If you only need coverage for a limited period of time—you have a popup restaurant, for example—you can elect Thimble’s on-demand general liability policy, which starts at $5 per hour. 

What’s more, coverage is occurrence-based, which means that you’re covered for events that happen while your policy is active—no matter when someone brings forward a claim. This is especially useful if you purchase on-demand coverage, since someone could file a suit against you long after your event ended. But even for ongoing coverage, Thimble’s occurrence-based policies are flexible and can grant you peace of mind, even if you cancel or switch providers in the future. 

Best for Customer Satisfaction : Chubb Ltd. (CW)

Investopedia's Rating
4.6

Chubb logo

Chubb

Why We Chose It

Chubb is appropriate for larger small restaurants and has a stellar reputation regarding customer satisfaction and financial stability.

Pros & Cons
Pros
  • Great customer satisfaction record

  • High BOP revenue limits 

  • Wide range of endorsements

  • A++ (Superior) financial strength rating

Cons
  • Purchase and issue online is not available

Overview

Chubb offers a comprehensive catalog of restaurant insurance coverages for food businesses with annual receipts up to $30 million. This makes it appropriate for restaurateurs who anticipate increasing the size of their restaurant business, and would like an insurer that can grow with them. 

The company offers common food insurance necessities such as a robust BOP, equipment breakdown coverage, and liquor liability, plus a host of other options. Chubb also ranked second in the J.D. Power Small Commercial Insurance Study, only one point behind the leader (State Farm).

You must work with an agent directly to purchase a policy. This is often prudent, especially if you have extensive coverage needs, but is less convenient than same-day coverage companies that let you purchase via their website.

Final Verdict

While Huckleberry tops the list as the best restaurant insurance company, it’s not the only option to consider. Next is another all-around great choice for restaurant insurance as it offers the types of coverage that most restaurants need. But if you have a small food business and need ultra-affordable coverage, check out FLIP and Thimble. If your restaurant business is larger or you anticipate it becoming so, consider BiBerk and Chubb. 

A good first step is to get quotes from a few insurers that look like a good fit. Then, compare quotes and coverage to see which is best for your specific situation. 

How Much Does Restaurant Insurance Cost?

The cost of restaurant insurance depends on various factors including your restaurant’s location, size, the assets you want to cover, your claims history, the insurer you choose, and more. According to our research, expect to spend at least $300 for food liability insurance and at least $450 for a restaurant business owner’s policy (BOP).

What Is Restaurant Insurance?

Restaurant insurance is a business owner's policy (BOP) plus restaurant-specific endorsements. Restaurant insurance includes commercial property coverage and general liability insurance: Some BOP policies include business income coverage, and many restaurant owners choose to add liquor liability, food spoilage coverage, and equipment breakdown coverage, among others.

What Insurance Does a Restaurant Need?

Restaurants need general liability insurance, at a minimum. Most also need commercial property insurance plus a host of other coverages, such as product liability coverage, liquor liability, workers compensation if they have employees, or commercial auto if they use a vehicle in business operations. A business owner’s policy (BOP) packages general liability and commercial property.

How Much Is Insurance for a Food Truck?

Food liability insurance for a food truck can cost as low as $299 per year. But that doesn’t include commercial property insurance, commercial auto coverage, or a trailer endorsement (if you operate out of a food trailer). Adding these often essential restaurant insurance coverages will increase costs to well over $1,000 per year.

Methodology

To find the best restaurant insurance providers, we compiled a list of 19 commercial insurance companies that offer small business insurance in the food service industry. We collected 53 unique data points on costs, coverages, availability, the user experience, the quote and application experience, customer satisfaction, and the financial stability of each insurer. 

Customer satisfaction levels were considered by looking at three years of consumer complaint data from the National Association of Insurance Commissioners (NAIC) for each company’s commercial lines. We also considered whether each company placed in the 2022 J.D. Power Small Commercial Insurance Study. We used AM Best’s financial strength ratings to determine each company’s financial stability. For more detail, look at our full methodology for best small business insurance.

manager of restaurant working at table looking at restaurant insurance

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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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  2. Next Insurance. "Business Insurance."

  3. AM Best. "AM Best Assigns Credit Ratings to Next Insurance."

  4. Next Insurance. "Financial Services Insurance For Small Business."

  5. Food Liability Insurance Program. "Coverage Details."

  6. AM Best. "AM Best Affirms Credit Ratings of Berkshire Hathaway."

  7. Thimble. "How to Print My Insurance Documents."

  8. Chubb. "Business Owner's Policy."

  9. J.D. Power. “2022 U.S. Small Commercial Insurance Study.”