Sushi Restaurant Business Insurance
Getting insurance for your sushi restaurant is essential.
This is because sushi restaurants need to be protected against things like food poisoning allegations, employee injuries, and vendor disputes.
For example, a customer could get ill after consuming sushi from your restaurant, or one of your sushi chefs could injure themselves while working and require time off.
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 Sushi Restaurant
General liability insurance is — generally speaking — one of the most important insurance policies for sushi restaurants.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
You will likely benefit from purchasing additional coverage; this is because a general liability policy will not protect you from all of the foreseeable risks that you will be privy to.
Additional coverage options worth considering include:
- Commercial property insurance — Protects you in the event that you need to replace or repair your restaurant’s equipment as a result of damage.
- Business interruption insurance — Protects you in the event that you are required to temporarily shut down as a result of an unforeseen disaster.
- Workers’ compensation insurance — Protects you against employment law related claims (e.g., payment disputes, wrongful terminations, etc.).
You will also need to find the right type of business insurer for your unique needs.
As of 2024, there are two options available:
- Online insurers — These use AI to offer personalized quotes without an insurance agent, and can thus benefit from having lower operating costs.
- Brick-and-mortar insurers — These have been operating for several decades, and have sustained a great track record when it comes to claims procedures and financial strength.
All in all, we recommend going with an online insurer as a small business owner due to the fact that it’s usually significantly more affordable.
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Cost of General Liability Insurance
On average, sushi restaurants 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 sushi restaurant 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 Sushi Restaurant
Example 1: After a fire destroys your entire kitchen and part of the dining room, your landlord sues you for $300,000 in damages. General liability insurance can help cover associated costs, including legal representation.
Example 2: You are unaware of spilled liquid in your restaurant and a client slips and falls, injuring herself. A general liability policy would cover her medical bills.
Example 3: During a delivery for an event your restaurant is catering, a member of your staff causes damage to the venue’s flooring and walls. General liability insurance would cover the repair and replacement of damaged property.
Other Types of Coverage Sushi Restaurants 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:
Commercial Property Insurance
Whether you rent or own the space your business operates out of, commercial property insurance should be part of your insurance portfolio. Should a covered loss occur, this policy would cover the cost to repair and/or replace damaged property, including owned real estate and other commercial materials. Because kitchen equipment and accessories can be quite costly, business owners are encouraged to carefully consider the cost to replace these items, as well as any building repair expenses, when choosing their policy’s coverage limits.
Product Liability Insurance
Product liability insurance is recommended for all businesses that manufacture, distribute, or sell products to the public. If a patron names your business in a lawsuit, claiming illness or injury from your products, this policy would provide legal representation and pay damages awarded by the court.
Workers’ Compensation Insurance
Your state mandates that all full-time and part-time employees must be covered under a workers compensation policy. In the event of on-the-job illness or injury, this policy would provide coverage for related medical bills, as well as a portion of their lost wages from time out of work. For larger claims that result in a lawsuit, workers’ compensation insurance will extend to the business owner, providing legal representation and court-awarded damages.
Business Interruption insurance
If your restaurant sustains a significant property loss, it could take months to recover. Unfortunately, this leaves many businesses financially vulnerable. Business interruption insurance, also known as business income and extra expense insurance, helps protect the business financially during this difficult time. It provides coverage for extra expenses, supplements lost income, and helps set up in a temporary location during the recovery time.
Liquor Liability Insurance
If your restaurant serves alcohol to the public, obtaining a liquor liability policy is critical. Unfortunately, no matter how responsible you and your staff are, incidents often occur in the presence of alcohol. Liquor liability can cover alcohol-related incidents, including injuries, accidents, and fights, and offer legal representation in the event of a lawsuit.
Commercial Umbrella Liability Insurance
Serving the public leaves business owners exposed to a variety of liability risks. A commercial umbrella liability policy provides an added layer of protection, above and beyond the limits of the underlying general liability 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 sushi restaurant:
- 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.
Sushi 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. Getting business insurance before you start your restaurant will ensure that you do not have to face a claim or other legal dispute without being insured.
This is important, as claims can end up costing you tens of thousands of dollars depending on the damages involved.
Not necessarily. Certain exceptions may be written directly into your sushi restaurant 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.