Commercial Kitchen Insurance: Cost & Quotes From $40/mo

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Catering businesses hire commercial kitchens to meet customers’ demands. On the other hand, cottage food businesses use commercial kitchens because a home kitchen might not satisfy government health requirements.  It’s also possible for restaurants to hire a commercial kitchen as they renovate their cooking space. 

Commercial kitchen insurance protects against unique risks and liabilities associated with operating a commercial kitchen. From accidents, property damage, foodborne illnesses and employee-related claims, the right insurance coverage can provide financial protection and peace of mind. This article will explore the different types of insurance policies available for commercial kitchens and optional add-ons to enhance your protection. 

General Liability Insurance for Commercial Kitchens

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $500,000/$1,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000 $100,000 $100,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included No
Equipment breakdown floater included? No  Yes Yes Can be included Yes
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0


General liability insurance is a type of coverage that protects your business from third-party claims for bodily injury, property damage, or personal injury. It provides financial protection in case someone sues your commercial kitchen for accidents or injuries occurring on your premises.


Coverage Limits of General Liability Insurance for Commercial Kitchens

General liability insurance offers a $1 million-$2 million per occurrence and aggregate limit. 


Add-Ons to General Liability Insurance for Commercial Kitchens

  • Product liability insurance–This additional coverage extends protection to claims related to products you sell or serve, such as contaminated food or faulty packaging

  • Liquor liability insurance–If your commercial kitchen serves alcohol, this add-on covers incidents related to alcohol consumption, such as accidents caused by intoxicated customers

Product Liability Insurance for Commercial Kitchens

As a commercial kitchen owner, you understand the importance of delivering safe and quality food products to your customers. However, accidents can happen, and product liability insurance can help protect your business in case of unforeseen events. This commissary kitchen insurance covers claims arising from injuries or damages caused by products you sell or serve. 


Coverage Limits of Product Liability Insurance for Commercial Kitchens

Product liability insurance offers a $1 million-$2 million per occurrence and aggregate limit. You might find this policy included in general liability insurance. 

Do I Need Product Liability Insurance if I Only Use High-Quality Ingredients in My Commercial Kitchen?

Yes, even if you use high-quality ingredients, accidents can still happen. Product liability insurance is essential for any business that sells or serves food products. It provides financial protection in case of unexpected incidents, such as allergic reactions, contamination, or packaging defects.

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Commercial Property Insurance for Commercial Kitchens

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $25,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $25,000 $25,000/$500,000 $15,000 $60,000
Outdoor signs Excluded $2,500 Excluded Included Excluded
Accounts receivable  Excluded Excluded $5,000/$10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded
Lock and keys  Excluded $2,500 Excluded Included Excluded
Business interruption floater Excluded Included Included Included Excluded
Equipment breakdown floater Excluded Included Excluded Included Excluded
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded


Your commercial kitchen is a valuable asset that needs protection against unforeseen events such as fires, theft, or natural disasters. Commercial property insurance is designed to safeguard your physical property and ensure that you can quickly recover from potential damages. 


Coverage Limits of Commercial Property Insurance for Commercial Kitchens

Commercial property insurance offers $25,000-$60,000 worth of coverage for the building and $15,000-$25,000 for the contents. 


Add-Ons to Commercial Property Insurance for Commercial Kitchens 

  • Equipment breakdown coverage–This add-on protects against the costs of repairing or replacing damaged equipment due to mechanical or electrical breakdown.

  • Food spoilage coverage–This provides coverage for the cost of food that has been contaminated or spoiled

Is Commercial Property Insurance Mandatory for Commercial Kitchens?

Commercial property insurance is not legally required in all states. However, if you own the building or have invested in expensive equipment and inventory, protecting your assets with commercial property insurance is highly recommended. Without it, you could face significant financial losses in the event of property damage or theft.


Man and woman wearing black and white striped aprons cooking


Business Owner’s Policy for Commercial Kitchens

CoverWallet NEXT (Best) Hiscox Thimble  The Hartford
General liability aggregate limit  $2,000,000 $500,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $25,000 $25,000 $25,000/$500,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


To streamline your commercial kitchen insurance coverage and ensure comprehensive protection, a business owner’s olicy (BOP) can be an ideal solution. 

It combines multiple insurance coverages into a single package, providing comprehensive protection for your commercial kitchen. It typically includes general liability insurance and commercial property insurance, with the option to add additional coverages based on your specific needs.

Coverage Limits of Business Owner’s Policy for Commercial Kitchens

A business owner’s policy has a $1 million-$2 million general liability coverage and $25,000-$60,000 commercial property coverage. 

Add-Ons to Business Owner’s Policy for Commercial Kitchens

  • Employment practices liability insurance (EPLI)–This add-on provides coverage for claims related to employment practices, such as wrongful termination, discrimination, harassment, or other employment-related issues

  • Professional liability insurance–Covers claims arising from professional mistakes, negligence, or inadequate services provided by your commercial kitchen. If a customer alleges financial loss, property damage, or bodily injury due to your professional advice or services, this coverage can help cover legal costs and potential settlements

Is a Business Owner’s Policy Suitable for a Small-Scale Commercial Kitchen?

This commercial kitchen insurance policy is often an excellent option for small-scale commercial kitchens. It combines essential coverages into a comprehensive package, providing cost-effective protection tailored to the needs of your business. However, it’s important to assess your specific risks and consult with an insurance professional to determine if a BOP is the right choice for your particular circumstances.


Tools and Equipment Insurance for Commercial Kitchens

NEXT (Best) Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


In a bustling commercial kitchen, your tools and equipment are vital for smooth operations. Protecting these valuable assets ensures uninterrupted service and minimizes financial losses. Tools and equipment insurance tailored for commercial kitchens can provide the necessary coverage. 


Coverage Limits of Tools and Equipment Insurance for Commercial Kitchens

Tools and equipment insurance provides $2,500-$25,000 you can use to cover the repair or replacement of each item covered. 

 

Add-Ons to Tools and Equipment Insurance for Commercial Kitchens

  • Equipment rental reimbursement–If a covered event renders your equipment unusable, this add-on can help cover the cost of renting temporary replacements

How Can I Determine the Value of My Tools and Equipment for Insurance Purposes?

To determine the value of your tools and equipment, conducting a comprehensive inventory of all items is important. Take note of the purchase price, age, condition, and any relevant receipts or documentation. You may also consider consulting with a commercial kitchen insurance professional to help assess the value and ensure adequate coverage.


Workers’ Compensation Insurance for Commercial Kitchens

Ensuring the safety and well-being of your employees is a top priority in any commercial kitchen.  Workers’ compensation insurance is essential to protect your employees and your business from the financial burdens associated with workplace injuries.


Add-Ons to Workers’ Compensation Insurance for Commercial Kitchens

  • Employer’s liability coverage–This add-on provides additional protection in case an employee files a lawsuit against the employer for negligence or unsafe working conditions

  • Return-to-work program–Implementing a return-to-work program as an add-on to your workers’ compensation insurance can help facilitate the smooth transition of employees back to work after an injury, reducing downtime and productivity losses

Can I Be Held Liable for an Employee’s Injury if I Have Workers’ Compensation Insurance?

This insurance protects employers from employee lawsuits related to work-related injuries or illnesses. However, there may be exceptions in cases of intentional harm or gross negligence. Maintaining a safe working environment and following all safety protocols are important to minimize the risk of accidents and potential liability.


Commercial Auto Insurance for Commercial Kitchens

If your commercial kitchen involves delivery services or goods transportation, adequate commercial auto insurance is crucial. This commercial kitchen insurance covers vehicles used for business purposes, protecting against potential accidents, property damage, and liability.

 

Add-Ons to Commercial Auto Insurance for Commercial Kitchens

  • Hired and non-owned auto coverage–This add-on extends coverage to vehicles that are rented, borrowed, or used for business purposes but not owned by your commercial kitchen

  • Umbrella coverage–Umbrella insurance provides additional liability coverage that goes beyond the limits of your primary commercial auto insurance policy, offering extra protection in high-cost liability claims

Is Commercial Auto Insurance Necessary if My Employees Use Their Personal Vehicles for Business Purposes?

If your employees frequently use their personal vehicles for business purposes, relying solely on their personal auto insurance may not provide adequate coverage. Personal auto insurance policies often exclude coverage for business-related activities. Commercial auto insurance is designed to specifically cover vehicles used for commercial purposes, providing comprehensive protection for your business and employees.

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Commercial Kitchen Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $42 $504 $0-$500
Commercial property insurance $70 $840 $1,000-$2,000
Business owner’s policy $105 $1,260 $1,500
Tools and equipment insurance $49 $588 $500-$1,000
Commercial auto insurance $60 $720 $500-$1,000
Workers compensation insurance $92 $1,104 $2,500-$5,000


The average commercial kitchen insurance cost is $42 per month or $504 per year for a $1 million general liability policy. Here are some factors that affect premiums:

  • Coverage types–The specific types of insurance coverage you choose for your commercial kitchens, such as general liability, property, workers’ compensation, and auto insurance, will impact the overall cost

  • Coverage limits–Higher coverage limits result in higher premiums. Consider your business’s unique needs and assess the appropriate coverage amounts required for adequate protection

  • Kitchen size and operations–The size and scale of your commercial kitchen and the complexity of your operations can influence the insurance cost. Larger kitchens or those with specialized equipment may require higher coverage levels

  • Claims history–If your commercial kitchen has a history of frequent claims or incidents, it can affect the insurance premium. Insurance providers may consider your claims history as an indicator of risk

  • Location–The location of your commercial kitchen plays a role in insurance pricing. Factors such as crime rates, local regulations, and the prevalence of natural disasters in your area can impact insurance costs

In connection, here’s a table showing the cost of a $1 million general liability insurance from the best companies:

Cost per Month Cost per Year Best for
NEXT $25 $300 Best overall; Fastest general liability insurance for commercial kitchens
CoverWallet $27 $324 Comparing commercial kitchen insurance quotes online
The Hartford $29 $348 Workers compensation insurance for commercial kitchens
Tivly $32 $384 Comparing commercial kitchen insurance quotes over the phone
Thimble $35 $420 On-demand insurance policies
Hiscox $37 $444 Commercial kitchen insurance with automatic renewal

Compare Cheap Commercial Kitchen Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Commercial Kitchen Insurance Companies

Here are the best commercial kitchen insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy:


NEXT Commercial Kitchen Insurance 

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for commercial kitchens

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any 

NEXT is a technology-driven insurance provider that covers various industries, including commercial kitchens. They aim to provide customizable insurance solutions to small businesses with options. Policies you can purchase are general liability, commercial property, workers compensation, BOP, and more.

Best for: Best overall; Fastest general liability insurance for commercial kitchens

Average cost: $25 per month

Our rating: 10/10


CoverWallet Commercial Kitchen Insurance

Pros

  • Wide choice of insurance carriers

  • User-friendly online platform

  • Proficiency in comparing quotes from multiple providers

Cons

  • Not an insurance company but an insurance broker 

CoverWallet is a digital insurance platform that simplifies the insurance process for small businesses. They work with multiple insurance carriers to offer customized coverage options. While they can provide general liability, property insurance, and workers’ compensation for commercial kitchens, reviewing their policies, coverage limits, and exclusions is important to ensure they meet your specific needs.

Best for: Comparing commercial kitchen insurance quotes online 

Average cost: $27 per month 

Our rating: 10/10


The Hartford Commercial Kitchen Insurance

Pros

  • Established and respectable company

  • Comprehensive understanding of commercial insurance

  • Customizable commercial kitchen  insurance programs

Cons

  • Limited add-ons to general liability insurance

The Hartford is a well-known insurance company that has been in operation for a long time. They offer a range of insurance products for businesses, including commercial kitchen insurance. Their coverage may include general liability, property insurance, and business interruption insurance. It’s recommended to review their policies and consult with their representatives to determine the suitability for your commercial kitchen.

Best for: Workers compensation insurance for commercial kitchens

Average cost: $29 per month 

Our rating: 10/10


Tivly Commercial Kitchen Insurance

Pros

  • Custom coverage for commercial business

  • Devotion to customer satisfaction 

  • Provides personalized assistance to help you navigate your insurance requirements.

Cons

  • You need to talk to a representative to get quotes

Tivly is a digital insurance platform specifically  providing tailored coverage options, a seamless quote process, and a user-friendly online platform for policy management. Tivly’s focus on the food industry ensures they understand the unique risks commercial kitchens face. Call now to compare quotes over the phone. 

Best for: Comparing commercial kitchen insurance quotes over the phone

Average cost: $32 per month 

Our rating: 9/10

Thimble Commercial Kitchen Insurance

Pros

  • Coverage can be bought for specific durations, delivering flexibility.

  • Affordable pricing rates.

  • No long-term commitment

Cons 

  • You can’t reach customer service by calling

Thimble is an insurance provider specializing in flexible, on-demand coverage for small businesses. They offer short-term policies customized to specific time periods and coverage needs. While Thimble can provide general liability insurance that may be suitable for commercial kitchens, reviewing their terms, conditions, and coverage limits is essential to ensure they meet your specific requirements.

Best for: On-demand insurance policies

Average cost: $35 per month

Our rating: 9/10


Hiscox Commercial Kitchen Insurance

Pros

  • Expertise in risk management 

  • Has a reliable economic foundation.

  • Efficient and responsive claims handling process.

Cons

  • Limited availability in certain states

Hiscox is a global insurance provider that offers specialized coverage for various industries, including restaurants and commercial kitchens. They provide coverage for property damage, general liability, and other specific risks food service establishments face. It’s recommended to review their policies, coverage limits, and pricing to determine if they meet your commercial kitchen insurance needs.

Best for: Commercial kitchen insurance with automatic renewal

Average Cost: $37 per month

Our rating: 9/10

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