Restaurant insurance in North Carolina

General liability

Slip-and-fall is the most common restaurant claim. A wet floor, a loose mat, a spilled drink, any of these can result in a customer injury claim. GL covers bodily injury and property damage claims from third parties.

Liquor liability

If your restaurant serves alcohol, liquor liability is essential. NC dram shop laws create liability for restaurants that serve alcohol to someone who then causes injury. A separate liquor liability policy, or GL policy with liquor liability included, is required.

Commercial property

Your building (if owned), kitchen equipment, refrigeration, furniture, fixtures, and inventory. Equipment breakdown coverage is critical, a walk-in cooler failure or commercial oven breakdown can cost thousands and spoil significant inventory.

Business income / business interruption

If your restaurant closes due to a covered loss (fire, major equipment failure), business income coverage pays your lost revenue while you're shut down.

Workers' compensation

Required by NC law if you have 3 or more employees. Restaurant workers have significant injury exposure, burns, cuts, slips, and lifting injuries are all common.

Commercial auto

If you have delivery vehicles, catering vans, or employees making deliveries in company vehicles, commercial auto is needed. Personal auto policies exclude commercial delivery use.

Spoilage

Food spoilage due to equipment breakdown or power failure. Important for any restaurant with significant refrigerated inventory.

Employment practices liability (EPLI)

Wage and hour disputes, harassment claims, and wrongful termination suits are common in the restaurant industry. EPLI protects against these claims.

Is liquor liability included in a standard restaurant GL policy?

Sometimes, but not always. Some GL policies include liquor liability; others exclude it. Read your policy carefully. If you serve alcohol, confirm liquor liability is explicitly included or purchase it separately.

Does NC law require workers' compensation for restaurant employees?

Yes. NC requires workers' compensation for businesses with 3 or more employees. Most restaurants hit this threshold quickly with kitchen and wait staff combined.

What is food spoilage coverage for restaurants?

It pays for the cost of spoiled food inventory caused by equipment breakdown (refrigerator failure, freezer malfunction) or a power outage. For a restaurant with $10,000+ in refrigerated inventory, it's an important endorsement.

Do food trucks need different insurance than brick-and-mortar restaurants?

Yes. Food trucks are rated as both a commercial vehicle and a business. You need commercial auto for the truck itself, GL and product liability for the food service, and equipment coverage for the cooking equipment on the truck.