Updated 2026-10-25
Opening a restaurant takes months of work before the first guest sits down. Insurance needs grow in stages, and some coverage has to be in place well before opening.
At lease signing
Many leases require liability coverage from the day you take possession, even if the space is under construction. The landlord may also require property coverage on improvements you install. Read the lease and request quotes before signing so you know the cost.
During build-out
Contractors should carry their own liability and workers comp; ask for certificates before they start. If you are paying for significant improvements, ask whether builder's risk or property coverage on the improvements in progress makes sense. Equipment delivered before opening needs to be covered too.
Liquor license
Many license authorities require proof of liquor liability before a license is issued or as a condition of it. Line up a quote early, since license approval timelines can be long.
Hiring and training
Once you hire staff, even for training before opening, workers compensation requirements may apply. Start coverage before the first paid shift.
Opening day
By opening, a new restaurant typically has property and general liability, liquor liability if serving alcohol, workers comp, and any auto coverage for deliveries. Business income coverage is worth discussing too, though insurers may need to estimate income without a history.
Tips for new owners
- Keep a single file of every insurance requirement from the lease, lender and license authority
- Tell the agent your expected opening date and sales estimates
- Ask what changes once you have a full year of real numbers
- Review the policy again after the first few months, when operations have settled