Pop-Up Restaurant Business Insurance
Getting insurance for your pop-up restaurant business is essential.
Pop-up restaurants need to be protected against things like claims of nuisance, foodborne illnesses, and permit violations.
For example, your business fails to attain the proper licensing and permits required for its location, or visitors to your pop-up restaurant become ill after eating tainted food.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Pop-Up Restaurant Business
General liability insurance is — generally speaking — one of the most important insurance policies for pop-up restaurant businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Some other policies that build on the protection offered to your pop-up restaurant business by general liability include:
- Product liability insurance: Shields your restaurant from financial losses related to claims of injury that have been caused by its food.
- Commercial property insurance: Makes sure your business does not bear the financial losses of any damage suffered by its physical assets due to specific, covered events (e.g., natural disasters and fires).
- Workers’ compensation insurance: Grants compensation to cover the medical bills and lost wages of your employees who were injured or fell ill at work.
The two main types of insurance providers to be conscious of when buying coverage for your pop-up restaurant are:
- Traditional brick-and-mortar insurers
- Online insurers
Despite being less renowned, online insurers such as Tivly and Next often represent the better choice for small businesses as their lower operational costs enable them to charge far less for their policies.
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Cost of General Liability Insurance
On average, pop-up restaurant businesses in America spend between $500 - $1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a pop-up restaurant business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Pop-Up Restaurant Business
Example 1: While setting up your pop-up restaurant, you fail to see a customer who arrives early and you accidentally run into her. She breaks a wrist when she falls to the ground and demands your business pay for her medical treatment. General liability insurance would cover her medical expenses.
Example 2: A competitor sues your business for slander and libel. While you disagree with both claims, you know you need a lawyer right away. General liability insurance would cover your legal defense costs and any required settlement.
Example 3: When an employee spills grease outside your pop-up restaurant and fails to clean it up, a customer slips on the grease, breaks an arm, and decides to sue your business for damages. General liability insurance would pay for your legal defense and any required settlement.
Other Types of Coverage Pop-Up Restaurant Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you’re passionate about the food you serve at your pop-up restaurant, there’s always a chance someone might decide your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in the kitchen equipment, supplies, ingredients, and other property needed to run your pop-up restaurant. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your pop-up restaurant business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Pop-Up Restaurant Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. Securing adequate business insurance prior to the commencement of your pop-up restaurant business can lead to serious financial issues further down the line.
What’s more, it can also result in your business being at odds with the law in cases where it is legally obligated to possess certain types of insurance (e.g., workers’ compensation).
Not necessarily. Certain exceptions may be written directly into your pop-up restaurant business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.