Restaurant Insurance in Michigan

Operating a restaurant in Michigan can bring about both joy and financial success. However, it also includes numerous risks. From food security to customer fulfillment and from worker injuries to property destruction, restaurateurs have a lot of possibilities for liabilities that could put their business at risk. That's why obtaining the correct insurance coverage is essential for any proprietor who desires to guard their investment and good name.



Oakland Insurance Agency offers a broad range of restaurant insurance coverages to help Michigan restaurateurs protect their businesses. We are an independent agency, so we are able to provide many different policies from several leading insurers. Reach out to us today and get an insurance quote for your restaurant in Michigan.

No matter the kind of restaurant you own, Oakland Insurance Agency can help you choose the right coverage to meet your needs. Our knowledgeable agents will review your business operations and advise on the policies that are available for restaurateurs in Michigan. Some establishments that may need restaurant insurance include:

• Fast food restaurants
• Fine dining establishments
• Delivery and takeout restaurants
• Caterers
• Food trucks
• Cafeterias
• Coffee shops
• Bars/pubs/breweries
• Wineries
• Bakeries
• Ice cream parlors/yogurt shops
• Pizza places
• Seafood restaurants
• Diners/doughnut shops
• Family restaurants

Regardless of the type of restaurant you own, our independent agents are here to assist with finding the right insurance coverage.

At Oakland Insurance Agency, we offer a wide range of commercial policies that can provide the protection your restaurant needs. 

General Liability Insurance

General Liability Insurance is a must-have coverage for Michigan restaurants. This policy provides protection from both third-party bodily injury and property damage claims due to your restaurant’s operations, products, or services. It also covers related legal costs, including judgments and settlements.

Here are some of the common liabilities that may be covered under a general liability policy:

• Slips/trips and falls on your premises
• Damage to customer property caused by your business operations
• Bodily injury claims from customers or third parties
• Advertising injuries, such as copyright infringement or libel/slander
• Medical expenses resulting from a customer’s food poisoning claim
• Damage to rented premises caused by your operations.

A comprehensive general liability policy can also provide protection for additional liabilities that may arise in Michigan restaurants, such as liquor liability and product recall.

Commercial Property Insurance

Commercial Property insurance is a must-have policy for Michigan restaurants. This coverage helps protect your restaurant’s property from physical damage caused by fires, storms, theft, and other risks.

The right commercial property insurance policy will depend on your unique business needs, but here are some of the common coverages associated with this type of policy:

• Building and/or tenant improvements
• Business personal property, such as furniture and equipment
• Inventory or stock on hand
• Loss of income caused by an insured event
• Signage, computers and other electronic equipment
• Outdoor fixtures and landscaping.

Some policies may include Equipment Breakdown coverage, which protects your business from the cost of repairing or replacing equipment due to accidental mechanical or electrical breakdowns.

Business Interruption Insurance 

Business Interruption Insurance can provide a financial cushion for your Michigan restaurant if it’s forced to close or reduce operations due to a covered event. This policy can cover lost profits, rent, payroll obligations, and additional costs related to operating from a temporary location.

Sometimes, business interruption coverage also includes Extra Expense Coverage. This type of coverage helps cover the cost of some additional expenses you may incur while restoring your restaurant’s operations.

Liquor liability insurance

Liquor Liability insurance is a must-have policy for Michigan restaurants that serve alcohol. This coverage protects your business from claims related to third-party bodily injury or property damage caused by customers who have consumed alcohol on the premises.

Here are some of the common coverages included in most liquor liability policies:

• Property damage claims for third-party property damaged by an intoxicated customer
• Bodily injury claims from customers or third parties due to alcohol consumption on the premises
• Legal fees associated with defending against a claim related to alcohol consumption at your restaurant.

In Michigan, restaurants must also purchase a special liquor license in order to serve alcohol. This license may require additional liability coverage, such as Dram Shop Liability insurance.

In addition to the coverages mentioned above, a comprehensive liquor liability policy for Michigan restaurants should also include:

• Social host liability insurance for parties or special events held on your premises
• Intoxication defense costs and coverage for voluntary or involuntary intoxication
• Coverage for underage drinking violations

Note that not all insurance companies offer liquor liability insurance. However, a knowledgeable Michigan restaurant insurance agent can help you find the right coverage for your business.

Equipment Breakdown Insurance 

Equipment breakdown insurance helps protect Michigan restaurants from the cost of repairing or replacing equipment due to accidental mechanical or electrical breakdowns. This coverage can help cover the cost of repairs, replacements, and related expenses if a covered piece of equipment breaks down unexpectedly.

This type of policy is especially important for restaurants using expensive kitchen appliances and other specialized equipment, such as walk-in freezers. Without this coverage, the cost of fixing or replacing a malfunctioning piece of equipment could be financially devastating for your business.

Worker’s Compensation Insurance 

Workers’ Compensation insurance is required for all businesses in Michigan that employ three or more people. This coverage helps protect your business from the cost of medical expenses and lost wages due to a work-related injury or illness. It can also provide benefits to families of employees who die as a result of their injuries while on the job.

In addition to providing benefits for employees, Workers’ Compensation insurance can also protect employers from certain legal liabilities. By purchasing this coverage, you can help protect your Michigan restaurant in case of an employee-related lawsuit.

Cyber Liability Insurance

Cyber Liability insurance helps protect businesses from the cost of a data breach, hack, or other cyber attacks. Cyber insurance can help cover the cost of notifications and credit monitoring services for affected customers, as well as legal fees related to defending against a claim.

Since restaurant operations rely heavily on digital systems and networks, Cyber Liability insurance is essential for Michigan restaurants. In addition to protecting your business from the cost of a cyber attack, this type of policy can also help you recover more quickly in the event of an incident.

Commercial Auto Insurance 

If your Michigan restaurant uses any type of motor vehicle for business operations, you may need to purchase Commercial Auto insurance. This coverage helps protect your business from the cost of damages resulting from an auto accident involving a company-owned or leased vehicle.

Commercial Auto insurance can also help cover medical bills, lost wages, and other expenses related to an auto accident. Michigan law requires businesses to purchase certain minimum levels of auto liability insurance for any vehicles used for business purposes. These include $20,000 per person and $40,000 per accident for bodily injury liability and $10,000 for property damage liability.

Hired/Non-Owned Auto Liability Insurance 

Hired or Non-Owned Auto Liability insurance helps protect your Michigan restaurant from the cost of an auto accident involving a vehicle owned by someone else but used for business purposes. If any of your personnel utilize their own cars to run tasks or transport customers, it is essential that you invest in coverage as you may face liabilities for damages stemming from an accident.

By purchasing Hired/Non-Owned Auto Liability insurance, you can help protect your business from the cost of any legal action taken as a result of an auto accident involving a non-owned vehicle.

Employment Practices Liability Insurance 

Employment Practices Liability insurance helps protect your Michigan restaurant from the cost of claims related to wrongful termination, discrimination, sexual harassment, and other employment-related issues. This coverage can help cover legal fees if an employee or former employee sues your business for alleged wrongdoing.