As I sat across from Maria at her newly opened Mexican restaurant, the aroma of fresh tortillas filling the air, I could see the concern in her eyes. Like many restaurant owners I’ve worked with, she was passionate about her craft but overwhelmed by the insurance requirements for her business. “Just tell me what I absolutely need,” she said, cradling her coffee mug. “I want to do this right, but there are so many options.” We take a personal approach to meet with clients so we can make sure you are insured properly. Learn more about us.

Larry and Jax (Owner of Watch Me Sports Bar, Long Beach) sit down for a chat.

This conversation perfectly illustrates the confusion many food service owners face when navigating restaurant insurance requirements. Today, I want to share not just what coverage you legally need, but also how to make smart choices that protect your business without breaking the bank.

The Legal Essentials for Restaurant Insurance

Let’s start with what’s non-negotiable. In most states, you’ll need:

1. Workers’ Compensation Insurance This isn’t just a good idea – it’s the law. I remember helping Thomas, a food truck owner who initially thought he could skip this because he only had two employees. Imagine his relief when, three months later, one of his workers suffered a minor burn injury. The coverage we’d put in place meant he didn’t have to pay out of pocket for medical expenses.
2. General Liability Insurance While not always legally required, it’s practically essential. Your property manager or lender will almost certainly require it.

Beyond the Basics: Smart Protection & Curated Policies

Here’s where my value-oriented approach comes in. Just last month, I worked with a family-owned pizzeria that was paying too much for coverage they didn’t need while missing protection in critical areas. We restructured their policy to include:

• Property Insurance: Protecting their expensive pizza ovens and kitchen equipment and systems
• Business Interruption Coverage: Essential after seeing how a nearby restaurant struggled after a temporary closure, especially after wildfire and floods
• Food Spoilage Coverage: Particularly important for their large inventory of perishables

https://www.barandrestaurantexpo.com/

Real Savings, Real Protection

One of my proudest moments was helping a local diner save nearly 20% on their premium during their annual review. We identified that their improved safety protocols which qualified them for better rates. This isn’t unusual – I regularly find savings for my clients during policy reviews.

The Annual Review: Your Money-Saving Opportunity

Here’s something many insurance agents won’t tell you: your renewal period is your best opportunity to save money. I always schedule reviews with my restaurant clients 60 days before renewal. This gives us time to:

• Review any business changes
• Evaluate new risks or opportunities
• Shop for better rates
• Adjust coverage as needed

A Personal Approach to Protection

Recently, I worked with a sushi restaurant owner who was frustrated with his previous insurance experience. “I felt like just another policy number,” he told me. Together, we created a custom package that not only saved him money but also gave him peace of mind knowing he had the right coverage.

Money-Saving Tips I Share With All My Clients

1. Bundle policies when it makes sense
2. Implement strong safety protocols
3. Document all safety training
4. Consider higher deductibles if you have good cash reserves
5. Review your policy limits regularly to avoid over-insurance

Looking Forward Together

Insurance shouldn’t be just another business expense – it’s an investment in your restaurant’s future. My approach has always been to build lasting relationships with restaurant owners, understanding that their success is my success.

If you’re feeling uncertain about your restaurant’s insurance needs or wonder if you’re paying too much, let’s talk. I pride myself on finding value-oriented solutions that protect your business while respecting your bottom line.

Remember, when your renewal date approaches, reach out early. That’s when we have the most leverage to find you better rates and ensure your coverage still matches your needs.

Whether you’re just opening your doors or have been serving your community for years, you deserve an insurance partner who understands both your protection needs and your budget concerns. Let’s work together to find the right balance for your business.

Come meet us at the Bar & Restaurant Expo in Las Vegas this March 24-26 2025, Booth # 1338.  Come by and meet the team!  We have regional agents who cover all of California and the Greater Las Vegas area in Nevada. 

See you soon! 

Larry