Restaurant Insurance Washington State: What Coverage You Need

Running a restaurant in Washington State comes with unique risks that require specialized insurance coverage. From food contamination claims to customer slip-and-falls, restaurants face more liability exposure than most businesses. Understanding your coverage options helps protect your investment and keep your doors open.

Essential Restaurant Insurance Coverage

General Liability Insurance

Every restaurant needs general liability insurance. This covers the risks inherent in having customers visit your establishment daily. If a customer slips on a wet floor and breaks their arm, general liability pays their medical bills and your legal defense if they sue. It also covers property damage—like if a server accidentally spills hot coffee on a customer's laptop.

For Washington restaurants, general liability typically costs $100-200/month depending on your annual revenue and seating capacity. Standard coverage limits are $1 million per occurrence and $2 million aggregate.

Commercial Property Insurance

Your restaurant has significant assets that need protection. Commercial property insurance covers your building (if you own it), equipment like ovens and refrigerators, furniture and fixtures, inventory, and signage. A kitchen fire could destroy hundreds of thousands of dollars in equipment overnight.

Property insurance also includes business interruption coverage, which pays your ongoing expenses and lost profits if you're forced to close temporarily due to a covered loss.

Food Spoilage Coverage

Restaurants store thousands of dollars in perishable inventory. If your refrigeration fails, a power outage occurs, or a delivery truck breaks down, you could lose everything. Food spoilage coverage, often included in property policies or available as an endorsement, reimburses you for spoiled inventory.

Liquor Liability Insurance

If your restaurant serves alcohol, you need liquor liability insurance. Washington's dram shop laws hold establishments liable if they serve alcohol to visibly intoxicated patrons who then cause injuries or damage. Liquor liability covers claims arising from alcohol-related incidents.

This coverage is separate from general liability and typically costs $50-150/month depending on your alcohol sales volume and type of establishment. A bar-focused restaurant pays more than one where alcohol is incidental to dining.

Workers' Compensation

Washington State requires workers' compensation insurance for all employers. Restaurants have significant workers' comp exposure due to the physical nature of kitchen work—burns, cuts, and repetitive strain injuries are common. You must register with L&I and pay quarterly premiums based on your payroll.

Restaurant workers' comp rates vary by job classification. Kitchen workers pay higher rates than servers or hosts due to the increased risk of injury.

Additional Coverage Options

Employment Practices Liability

Restaurants have high employee turnover and often face claims of wrongful termination, discrimination, or harassment. Employment practices liability insurance (EPLI) covers these claims and your legal defense costs.

Cyber Liability

If you process credit card payments (and most restaurants do), you're at risk for data breaches. Cyber liability insurance covers the costs of notifying affected customers, credit monitoring services, legal defense, and regulatory fines.

Commercial Auto Insurance

Restaurants with delivery drivers need commercial auto insurance. Personal auto policies exclude business use, so any accident during a delivery could leave you personally liable.

Umbrella Insurance

For added protection, umbrella insurance provides additional liability limits above your other policies. If a severe claim exceeds your general liability limits, umbrella coverage kicks in.

Washington-Specific Requirements

Washington restaurants must comply with several requirements:

• Business license: Required for all restaurants
• Food worker permits: Required for all employees who handle food
• Liquor license: Required to serve alcohol (multiple license types available)
• L&I registration: Required if you have employees
• Health department permits: Required for food service

Your insurance requirements often tie to these licenses. Many Washington liquor licenses require proof of liquor liability coverage.

Restaurant Insurance Costs in Washington

Total insurance costs for Washington restaurants vary widely:

Small restaurant ($250K annual revenue, no liquor)

• General liability: $89.99 - $150/month
• Property: $100 - $200/month
• Workers' comp: Varies by payroll
• Total: $200 - $400/month plus workers' comp

Full-service restaurant with bar ($500K revenue)

• General liability: $150 - $250/month
• Property: $150 - $300/month
• Liquor liability: $75 - $150/month
• Workers' comp: Varies by payroll
• Total: $400 - $700/month plus workers' comp

A Business Owner's Policy (BOP) often provides better value by bundling general liability and property coverage together.

Getting Covered

SmartInsured specializes in restaurant insurance for Washington establishments. We understand the unique coverage needs of food service businesses and can provide quotes quickly. Most restaurants can get same-day coverage, essential when you're opening a new location or renewing expiring policies.

Our platform compares options from multiple carriers to find competitive rates while ensuring you have adequate protection. Coverage starts at $89.99/month for smaller operations.

Don't leave your restaurant unprotected. Get a quote today to see what comprehensive coverage costs for your specific situation.