Restaurant Insurance FAQ

Texas requires $300k minimum, but we recommend $1M+ for vape/tobacco shops due to increased regulatory scrutiny and potential product liability claims. Austin's growing vape market also means higher risk exposure.

• Austin-specific: Higher coverage needed due to tech industry clientele and regulatory environment
• Product liability: Essential for vape products and accessories
• Premises liability: Covers customer injuries in your store
• Employment practices: Protects against discrimination claims

Related: New CBD regulations mean Dallas smoke shop insurance must include product liability above $1M. Dallas business owners should review their coverage annually.

Vape shops need specialized coverage beyond standard retail insurance:

• Product liability: $2M+ recommended for vape products
• Regulatory compliance: Covers FDA inspection costs
• Inventory coverage: Protects expensive vape equipment
• Cyber liability: For online sales and customer data

Food trucks need comprehensive coverage for both vehicle and business operations:

• Commercial auto insurance: $1M+ liability coverage
• General liability: $1M+ for customer injuries
• Equipment coverage: Protects cooking equipment and generators
• Workers compensation: Required for employees
• Spoilage coverage: Protects against food loss
• Business interruption: Covers lost income during repairs

Local Insight: Houston food truck insurance must cover generator theft - 37% increase in 2023 (HPD data). Houston food truck owners should consider additional equipment coverage.

Yes, coverage requirements vary by city:

• Austin: Higher liability limits due to food truck culture and festivals
• Houston: Additional coverage for hurricane-related business interruption
• Dallas: Higher property coverage for equipment theft
• San Antonio: Special event coverage for tourist areas

Yes, Texas requires liquor liability coverage for bars and restaurants serving alcohol. We recommend $1M+ in coverage, especially for venues in entertainment districts like Austin's 6th Street.

• Dram shop liability: Covers injuries caused by intoxicated patrons
• Assault and battery: Protects against fights and altercations
• Property damage: Covers damage to your establishment
• Employment practices: For staff-related claims

Live music venues need specialized coverage:

• Entertainment liability: $2M+ for performance-related incidents
• Equipment coverage: Protects sound systems and instruments
• Event cancellation: Covers lost revenue from cancelled shows
• Security liability: For crowd control and security incidents

Restaurant liability coverage depends on size and type:

• Small cafes: $500k - $1M minimum
• Full-service restaurants: $1M - $2M recommended
• Fine dining: $2M+ due to higher customer expectations
• Chain restaurants: $5M+ for multiple locations

These coverages protect against different types of losses:

• Food spoilage: Covers the cost of spoiled food due to equipment failure
• Business interruption: Covers lost income when you can't operate
• Equipment breakdown: Covers repair/replacement of cooking equipment
• Utility interruption: Covers losses from power/water outages

Craft breweries need specialized coverage for manufacturing and hospitality:

• Product liability: $2M+ for beer-related claims
• Manufacturing equipment: Covers brewing equipment and tanks
• Taproom liability: For on-site consumption
• Distribution coverage: For delivery and shipping
• Environmental liability: For waste disposal and spills

Yes, wineries have unique risks:

• Crop insurance: Protects against grape crop damage
• Weather coverage: For hail, frost, and drought damage
• Wine cellar coverage: Protects aging wine inventory
• Tourism liability: For wine tasting and tours