Restaurant Insurance in Texas: What You Need to Know

From fast casual restaurants in Austin to upscale dining in Houston, Texas’ food culture is an integral part of its identity. However, the Lone Star State’s vibrant restaurant scene isn’t just an opportunity to find great eats — it’s also a ripe market for insurance agents and brokers looking to grow their business. 

There are over 50,000 restaurants peppered across the state of Texas, with new establishments opening every day. In this guide, we’ll go over the basics of restaurant insurance in Texas, including what it covers, what it costs, and why partnering with Distinguished can help you grow. So whether it’s for a quaint café or a bustling steakhouse, you can make sure you have the answers and the policies that’ll win you their business. 

What Exposures do Texas Restaurants Need to Worry About? 

Restaurants in Texas can face any number of exposures. Here are just some of the most important ones your restaurant clients should be aware of and covered for. 


With an active kitchen, it’s no wonder that fire is one of the biggest exposures a restaurant can face. Fires are a huge property risk for restaurants, with even smaller fires capable of racking up large bills.  

Recently, in Dumas, Texas, a restaurant was forced to rebuild after an electrical fire damaged the building. Unfortunately, these types of larger fires are not uncommon, with roughly 6,000 occurring every year in restaurants in the U.S., racking up millions in damages. 

Food Poisoning 

No restaurant ever wants to be the source of a food poisoning event, but even the most stringent safety guidelines leave some room for error. In these cases, food contamination can leave a restaurant vulnerable to lawsuits that can cost millions. 

For example, in one case, a person was awarded $10 million in damages after a Shigella outbreak occurred at a restaurant here in the U.S. 

Power Loss 

Unfortunately, the great state of Texas is no stranger to blackouts, especially when the weather gets cold. Sudden power outages are not just inconvenient, but they can also cause thousands of dollars worth of food to go bad

Having a comprehensive restaurant insurance policy can help cover those losses so that the only thing your clients need to worry about after the storm is getting their doors open again. 


Alcoholic drinks are major money-makers for restaurants, but they’re also a big liability risk. Should a patron be overserved and then go on to cause property damage or injure another person, the restaurant could be held liable. 

For instance, in 2021, a Texas man was awarded over $5 million after he was injured due to being overserved by a restaurant. 


Cybercrime is a growing threat in America for any business that keeps valuable and confidential data online. For many restaurants, this could include customer contact information, credit card information, or employees’ personal information. 

By not taking preventive steps and ensuring they have proper cyber liability coverage, restaurants leave themselves vulnerable to an attack and any follow-up litigation that comes from it.  

What Does Distinguished’s Restaurant Insurance Cover? 

Distinguished’s Restaurant Package Insurance offers your restaurant clients in Texas all of the most important coverages and insurance policies they’ll need to cover their top exposures.  

Some highlights from this insurance package include: 

  • Liquor liability insurance: Offers protection against legal and financial risks associated with serving alcohol, covering potential liabilities from alcohol-related incidents. 
  • General liability insurance: Provides broad coverage for a range of common business risks, including customer injuries and property damage. 
  • Employment Practices Liability Insurance (EPLI): Protects against liability claims related to employment practices, like wrongful termination or harassment. 
  • Food spoilage coverage: Specifically designed to cover losses from spoiled food due to equipment breakdowns or power outages, minimizing financial setbacks from unforeseen spoilage events. 
  • Foodborne contamination business interruption coverage: Offers financial protection against losses incurred from a forced closure due to a foodborne illness outbreak, helping to sustain your business through unexpected shutdowns. 
  • Cyber liability insurance: Shields your restaurant from the modern risks of cybercrime, covering data breaches, cyber-attacks, and more. 

On top of all of this, Distinguished also offers a specialized restaurant umbrella insurance policy. With one of our restaurant umbrella policies, your clients can get coverage options up to $140 million. This way, they know they’ll be covered even in instances of high liability bills brought on by unforeseen accidents. 

How Much Does Restaurant Insurance Cost in Texas? 

There is no way to give a blanket answer to the question of how much restaurant insurance will cost in Texas. Policy premiums will come down to a variety of factors, including: 

  • Deductibles 
  • TIV of the restaurant 
  • Optional coverages 
  • Location of the restaurant 
  • Property safety measures 
  • Number of employees 

To get a detailed quote for your client’s specific situation, we recommend you submit their details to us. We will then provide you with a bindable quote as soon as we can.  

If you have more questions about what we specifically consider when determining these insurance costs, you can read our guide to restaurant insurance costs, which breaks down these pricing factors policy by policy.  

What Restaurants Qualify for Distinguished’s Restaurant Insurance? 

Our Restaurant Package has been specifically designed to cater to a wide variety of restaurant ventures. These include: 

Our experienced restaurant underwriters will also consider the following, which may be harder to place: 

If you’re still not sure whether your client’s restaurant venture will qualify, reach out to our local restaurant insurance expert, Alex Montclair, Business Development Manager at Distinguished Programs here at:

Why Partner With Distinguished for Restaurant Insurance in Texas? 

By partnering with Distinguished for all of your restaurant insurance needs, you get access to not only great coverage but also a whole smorgasbord of additional advantages. These include: 

  • Industry expertise: Our team has insured restaurants for decades. We can use this experience to ensure that your clients get the coverage they need as easily as possible. 
  • Extensive umbrella coverage: Our high-limit umbrella policies provide an extra layer of security for your clients, ensuring their restaurants are safeguarded against large and unexpected financial liabilities.  
  • Appetite for a wide variety of restaurants: Our program can accommodate a number of different kinds of restaurants, including entirely new ventures, as long as your client has prior experience. 
  • Admitted coverage with top-rated carriers: Our coverage is written on an admitted basis and backed by an A+ XV-rated carrier, offering your clients the highest standard of stability and trustworthiness. 
  • Exclusive access with Distinguished: Our restaurant insurance products are available only through Distinguished, which provides unique and specialized coverage options tailored to the restaurant industry. 

Learn about how Distinguished can help you win over more restaurant clients in our recent webinar, Restaurant Insurance 2.0: Addressing The Evolving Needs Of Today’s Modern Restaurants

How to Get Started With Distinguished Programs Today

At Distinguished, we offer a wide array of policy options designed to cater to the unique requirements of dining establishments, ensuring extensive protection for your clients’ businesses. This includes vital coverages, like General Liability, Commercial Property, EPLI, Liquor Liability, Cyber Liability, and High-limit Umbrellas, making us a go-to destination for all your restaurant insurance needs in Texas. 

Get started with Distinguished by registering your agency with us. This process is straightforward and can be completed in roughly five minutes. Once registered, you’ll have the opportunity to submit business for our specialized Restaurant program as well as any other programs we offer. 

If you have any more questions, feel free to contact one of our insurance experts or review the restaurant insurance resources below. 


Are coastal properties in Texas eligible for this program? 

We will consider primary liability and umbrella for coastal restaurants but not property. 

Are these programs offered outside of Texas? 

Our Restaurant Package Policy is offered in every state except for Alaska.

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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