Below are the insurance policies that are required under Maryland State Law. If the conditions as described below apply, make sure your restaurant obtains the appropriate coverage.

Workers Compensation
Workers compensation insurance is meant to protect you and your restaurant in the event one of your employees gets injured during work. If you have any employees, you will be required to obtain this type of insurance coverage under Maryland State Law.

Liquor Liability If your restaurant serves liquor in any capacity or has a liquor license, you are required under Maryland State Law to carry liquor liability insurance. This type of insurance is meant to protect you and your restaurant in the event a customer hurts themselves or others as a result of drinking too much liquor from your restaurant and / or drinking and driving.

Commercial Automobile Liability
If your restaurant (as a business entity) owns any vehicles (e.g. for delivery), you are required under Maryland State Law to obtain some form of automobile liability coverage. While it may already be covered under your general liability coverage, you should always confirm with your insurance provider.

Below are the insurance policies that are generally required by a restaurant's landlord or financial lenders. The exact coverage terms will vary depending on who you are dealing with and the amount of restaurant experience you have, but you should expect to obtain some form of these insurance types prior to opening your restaurant.

Property Insurance
Property insurance helps protect your restaurant’s real estate from events like fires, theft, and some weather damage. While coverage details will vary depending on the insurance provider, you are generally required to carry some form of property insurance, especially if you have any bank loans, mortgages, or lease agreements

Commercial General Liability (CGL)Commercial General liability insurance is meant to protect you and your restaurant from potential damages resulting from accidental events. These events can range from a customer falling and injuring themselves in your restaurant to a customer getting sick after eating at your restaurant (regardless of whose fault it was). You are generally required by your landlord or lenders to carry some form of general liability insurance.

Fire Insurance
While fire insurance may already be covered under your property insurance coverage, you should confirm with your provider as it is generally required by landlords.

Loss of Business InsuranceLoss of Business Insurance is meant to help recoup some income lost resulting from specific loss generating events. Especially in an industry with high failure rates like restaurants, some landlords or lenders may require you to carry such insurance.

Below are additional insurance types that are generally relevant for restaurants. Make sure to discuss these types with your insurance agent / broker as some may make more sense for your particular restaurant than others.

Food Contamination Insurance
Food Contamination Insurance is meant to mitigate the risks of spoilage as a result of certain events. For example, if you lose power, because of fallen power lines or a storm, and the entire contents of your walk-in and freezer spoil, this policy would pay to replace the food.

Life InsuranceIn the event something tragic happens to you, life insurance is meant to protect your relatives from being left with a restaurant they do not know how to run and hefty bills they cannot pay. You may need to carry some form of life insurance coverage to satisfy specific mortgage or financing terms.

Umbrella Liability Insurance
An umbrella liability policy provides extra protection over and above a standard CGL policy. While the terms of coverage are similar to the underlying liability policy, an umbrella policy provides additional coverage on top of the underlying liability policy and will pay, up to its stated limit, when the amount of the claim exceeds the underlying policy limit. Umbrella policy coverage limits are generally in the $1 million to $5 million range and are appropriate for businesses and business owners who have large assets or may be vulnerable to claims and lawsuits.

Specific Peril InsuranceSpecific Peril Insurance covers many natural disasters that are not covered by general liability insurance including events like earthquakes, floods or power outages due to either.