Illinois Restaurant Insurance

Find the Best Restaurant Insurance Rates & Companies in Illinois

Running a restaurant comes with numerous rewards, but it's also not without various risks to consider. From customer slips and falls to lawsuits, having restaurant insurance in Illinois is imperative. This coverage can help protect your business against various potentially hefty financial losses so you can continue serving customers for many years to come.

Luckily, an Illinois independent insurance agent can help you get set up with all the restaurant insurance your business needs. They'll help your restaurant get equipped with all the coverage required to guard against lawsuit expenses, losses due to commercial property damage, and much more. But up first, here's a breakdown of Illinois restaurant insurance requirements, coverage options, etc.

Best Restaurant Insurance Companies in Illinois

To properly protect your Illinois restaurant, you'll need to find a carrier that offers business insurance tailored to your niche. Depending on the size of your restaurant, you may also be completely covered by a special small business insurance policy. We've included just a few of our top picks for the best restaurant insurance companies in Illinois for your convenience. 

1. Nationwide: This insurance company sells many types of business and personal insurance. Nationwide is highly rated by AM Best and the Better Business Bureau (BBB), sells coverage in most states, and provides 24/7 claims reporting.
2. Travelers: This insurance company sells many types of business and personal insurance. Travelers has a long history in the industry, superior ratings from AM Best and the BBB, and numerous discount options.
3. Liberty Mutual: This insurance company sells many types of business and personal insurance. Liberty Mutual is highly rated by AM Best and the BBB, offers numerous discounts, and provides 24/7 claims reporting. 

An independent insurance agent in Illinois can help you compare restaurant insurance quotes and policy options from each of these outstanding carriers and others in your area.

What Does Restaurant Insurance Cover in Illinois?

To fully cover your Illinois restaurant, you'll need a policy that packages many different types of coverage together. Some of the most common restaurant insurance coverage options in Illinois include:

• General liability insurance: Reimburses you for lawsuit costs related to bodily injury, including food poisoning or personal property damage to third parties like customers.
• Business income insurance: Reimburses you for financial loss while your business is temporarily closed due to covered disasters like fire damage.
• Ordinance and law insurance: Reimburses you for any financial ramifications if your building is not up to state code, if you need to rebuild your restaurant, or if you're building one from the ground up. Coverage applies to aspects like handicap-compliant features, fire safety equipment, and emergency exits. 
• Workers' compensation insurance: This coverage is mandatory in Illinois for businesses with at least one employee. It can cover employee medical bills and provide partial wage replacement for time off work due to work-related injuries and illnesses.
• Boiler and machinery insurance: Covers equipment used in your restaurant (e.g., AC units and boilers) if it breaks down due to power surges or other covered disasters. 
• Commercial property insurance: Covers damage to your restaurant's building, equipment, and inventory in case of fire and other covered disasters. Restaurants with drive-thrus typically need additional property coverage.
• Small business insurance: This package of coverages can include liability insurance, commercial property insurance, workers' comp, and other types of protection your small restaurant needs together in one convenient policy.
• Communicable disease insurance: This covers costs related to any illnesses transmitted to customers due to improper hygiene of your employees.
• Spoilage insurance: This covers the replacement costs of food that spoils due to power outages caused by storms, surges, etc.

An Illinois independent insurance agent can help you assemble a restaurant insurance policy with every type of coverage necessary for the longevity of your unique business.

Additional Restaurant Insurance Coverage Options in Illinois

A few additional types of coverage may be necessary to fully protect your Illinois restaurant. Consider the following types of coverage to add to your restaurant insurance policy:

• Signage coverage: Protects against costs related to loss or damage to restaurant signage against perils such as weather and vandalism.
• Art floater insurance: Helps pay for repairs or replacements to artwork in your restaurant caused by listed perils such as fire or theft.
• Liquor liability insurance: Coverage can protect you against the cost of legal ramifications if your employees overserve a customer who ends up with a DUI or other alcohol-related charge. 
• Commercial auto insurance: If you run a restaurant that makes deliveries, you'll need coverage for your company vehicles against threats like lawsuits, theft, and vandalism. Food trucks also need commercial auto insurance.
• Commercial umbrella insurance: This can increase your business's liability protection to a limit of $1 million or greater. Umbrella insurance can help your restaurant recover from especially expensive lawsuits that exhaust typical coverage limits in general liability insurance, etc.

Work together with an Illinois independent insurance agent to ensure your restaurant insurance policy includes each type of coverage necessary.

What's Not Covered by Illinois Restaurant Insurance?

Illinois restaurant insurance comes with various exclusions that you should take time to review before a disaster occurs. In Illinois, restaurant insurance is unlikely to cover any of the following:

• General wear and tear damage
• Insect infestations
• Professional liability claims
• Damage related to pollution
• Malicious or intentional acts against third parties

Review your restaurant insurance policy's specific list of exclusions before claim time ever comes. This can help you anticipate any additional types of coverage that may be necessary to protect your restaurant and save you from filing claims that are bound to get denied.

How Illinois Dram Shop Laws Affect Coverage Needs

In Illinois, it's critical to be aware that your restaurant can be held accountable for overserving a customer or guest who then causes injury or property damage to a third party after leaving your establishment. For this reason, having liquor liability insurance is very useful for your Illinois restaurant. 

This coverage is also important to protect your restaurant against losses related to serving alcohol to a minor. Work together with a local Illinois independent insurance agent to get your restaurant equipped with the proper liquor liability insurance.

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How Much Does Restaurant Insurance Cost in Illinois?

Restaurant insurance premiums in Illinois can vary considerably depending on the type of restaurant you run and many other factors. These can include:

• The size and location of your restaurant
• The number of people employed by your restaurant
• Whether your restaurant serves alcohol, makes deliveries, or has a drive-thru
• Your restaurant's claims history

You can typically expect a restaurant insurance policy's costs to fall anywhere from a couple hundred dollars per year to a few thousand or even more. An independent insurance agent in Illinois can help your specific restaurant get matched to the most affordable restaurant insurance policy.

Popular Questions about Illinois Restaurant Insurance