Restaurant Insurance in Florida: Complete Coverage Checklist for 2024
Running a restaurant in Florida comes with unique risks. From kitchen fires to foodborne illness claims, having the right insurance coverage is essential. This guide covers everything restaurant owners need to know about insurance in 2024.
Essential Restaurant Insurance Coverage
1. General Liability Insurance
What it covers:
- Customer slip and fall injuries
- Food poisoning claims
- Property damage to customer belongings
- Advertising injury
Average cost: $1,500 - $3,500 per year
Recommended limits: $1M per occurrence / $2M aggregate
2. Workers' Compensation
Required in Florida: Yes, if you have 4+ employees (including owners)
What it covers:
- Kitchen injuries (burns, cuts)
- Slip and fall accidents
- Repetitive stress injuries
- Medical expenses and lost wages
Average cost: $2.50 - $4.00 per $100 of payroll
Annual cost example: 10 employees at $30,000 each = $7,500 - $12,000
3. Commercial Property Insurance
What it covers:
- Building damage (if you own)
- Kitchen equipment
- Furniture and fixtures
- Inventory (food, beverages)
- Business interruption
Average cost: $2,000 - $5,000 per year
Important: Standard policies may exclude flood and equipment breakdown—add these separately.
4. Liquor Liability Insurance
Required if: You serve, sell, or allow alcohol consumption
What it covers:
- Injuries caused by intoxicated patrons
- DUI accidents after leaving your establishment
- Over-serving claims
- Serving minors
Average cost: $1,000 - $3,000 per year
Florida law: Dram shop liability applies—you can be held responsible for patron actions.
5. Commercial Auto Insurance
Required if: You offer delivery or use vehicles for business
What it covers:
- Delivery vehicle accidents
- Hired/non-owned auto liability
- Employee vehicle use for business
Average cost: $1,200 - $2,500 per vehicle per year
6. Food Contamination Coverage
What it covers:
- Spoiled food due to equipment failure
- Power outages
- Contamination events
- Lost income during cleanup
Average cost: $500 - $1,500 per year
Critical for: Restaurants with large inventory or limited backup power.
7. Employment Practices Liability (EPLI)
What it covers:
- Wrongful termination claims
- Discrimination lawsuits
- Sexual harassment allegations
- Wage and hour disputes
Average cost: $1,000 - $3,000 per year
Why you need it: Restaurant industry has high turnover and frequent employment claims.
8. Cyber Liability Insurance
What it covers:
- Credit card data breaches
- POS system hacks
- Customer data theft
- Notification costs
Average cost: $1,000 - $2,500 per year
Increasingly important: With online ordering and digital payments.
Total Insurance Cost for Florida Restaurants
Small Restaurant (10 employees, $500K revenue)
- General Liability: $2,000
- Workers' Comp: $9,000
- Property: $3,000
- Liquor Liability: $1,500
- Commercial Auto: $1,500
- Food Contamination: $800
- EPLI: $1,500
- Cyber: $1,200
Total: $20,500 - $25,000 per year
Medium Restaurant (25 employees, $1.5M revenue)
Total: $35,000 - $50,000 per year
Large Restaurant (50+ employees, $3M+ revenue)
Total: $60,000 - $100,000+ per year
Common Restaurant Insurance Claims
1. Slip and Fall Accidents
Average cost: $20,000 - $50,000 Prevention: Non-slip mats, proper cleaning, warning signs
2. Foodborne Illness
Average cost: $50,000 - $500,000+ Prevention: Proper food handling, temperature monitoring, staff training
3. Kitchen Fires
Average cost: $100,000 - $500,000+ Prevention: Regular hood cleaning, fire suppression systems, staff training
4. Employee Injuries
Average cost: $15,000 - $75,000 Prevention: Safety training, proper equipment, non-slip shoes
5. Liquor Liability Claims
Average cost: $100,000 - $1M+ Prevention: Server training, ID checking, cutting off intoxicated patrons
How to Save on Restaurant Insurance
1. Bundle Policies
Combine multiple coverages with one carrier for 15-25% savings.
2. Implement Safety Programs
- Regular staff training
- Safety equipment
- Documented procedures
- Lower workers' comp rates
3. Install Safety Equipment
- Fire suppression systems: 5-10% discount
- Security cameras: 5-10% discount
- Burglar alarms: 5% discount
4. Maintain Clean Claims History
No claims for 3-5 years = 10-20% discount.
5. Increase Deductibles
Higher deductibles = lower premiums (choose what you can afford).
6. Pay Annually
Annual payment saves 5-10% vs monthly.
7. Join Industry Associations
Florida Restaurant & Lodging Association membership may qualify for group rates.
Florida-Specific Considerations
Hurricane Coverage
- Standard property policies may exclude wind damage
- Separate hurricane deductible (2-10% of property value)
- Consider business interruption for extended closures
Flood Insurance
- Required in flood zones with mortgages
- Covers building and contents
- Separate policy through NFIP or private insurers
Health Department Requirements
- Maintain proper insurance for licensing
- Proof of coverage required for permits
- Minimum liability limits vary by county
Restaurant Insurance Mistakes to Avoid
1. Underinsuring Property
Problem: Equipment costs more to replace than you think. Solution: Get replacement cost coverage, not actual cash value.
2. Skipping Liquor Liability
Problem: "We only serve beer and wine." Reality: Still need coverage—claims can be massive.
3. Not Updating Coverage
Problem: Business grew but insurance didn't. Solution: Review coverage annually as revenue increases.
4. Misclassifying Employees
Problem: Listing cooks as "clerical" for lower workers' comp rates. Result: Denied claims, policy cancellation, fraud charges.
5. No Business Interruption Coverage
Problem: Fire closes restaurant for 3 months. Result: No income but still paying rent, loans, and salaries.
Get Your Restaurant Insurance Quote
Protect your Florida restaurant with comprehensive coverage at competitive rates. Our licensed agents specialize in restaurant insurance and will:
- Review your specific risks
- Compare quotes from 50+ carriers
- Identify all available discounts
- Ensure you meet Florida requirements
Call (407) 557-3100 or get a free quote online.
Information current as of February 2024. Insurance requirements and rates subject to change. Consult with a licensed agent for personalized advice.