General liability insurance is often the first policy restaurant owners hear about, and for good reason: it protects you when someone gets hurt on your property, when you accidentally damage something that belongs to a customer or vendor, and when certain legal claims arise from your operations. But general liability is also one of the most misunderstood policies in the restaurant world.
At Anchor Insurance, we help restaurant owners understand exactly what general liability does and doesn't cover, so you can make smart decisions about where else you might need protection.
What General Liability Actually Covers
General liability insurance (sometimes called GL, CGL, or commercial general liability) is designed to protect your restaurant from third-party bodily injury and property damage claims. Here's what that means in practice:
Bodily Injury to Third Parties
If a customer, vendor, or visitor gets hurt on your property or because of your operations, general liability can cover:
- Medical expenses for the injured party
- Legal defense costs if they sue you
- Settlement or judgment amounts (up to your policy limits)
Common restaurant examples:
- A customer slips on a wet floor near the entrance and breaks their wrist
- A delivery driver trips over a floor mat in your kitchen and injures their back
- A patron bumps into a wobbly table and the centerpiece falls on another guest, causing a minor head injury
Property Damage to Third Parties
If your business accidentally damages someone else's property, general liability can pay for repairs or replacement.
Restaurant examples:
- Your employee spills cleaning solution on a customer's designer handbag
- A catering delivery accidentally damages a client's flooring when moving equipment
- Your exhaust system malfunctions and causes smoke damage to the neighboring storefront
Personal and Advertising Injury
This is a less common but important coverage. It protects you from claims like:
- Libel or slander (defamation)
- Copyright infringement in your advertising materials
- Invasion of privacy
- False arrest or wrongful eviction
Restaurant examples:
- A customer claims your Instagram post defamed them or used their image without permission
- A competitor alleges you copied their marketing materials or slogans
- You're accused of wrongfully removing an unruly guest from your premises
Defense Costs
One of the most valuable parts of general liability is that it covers your legal defense, even if the claim is frivolous or groundless. Defense costs are typically paid in addition to your liability limits (though some policies include them within limits, so read your policy carefully).
This means that even if a customer's slip-and-fall lawsuit goes nowhere, your carrier will pay for attorneys, court costs, and expert witnesses.
What General Liability Does NOT Cover
General liability is essential, but it's not a catch-all policy. Here's where it stops:
Employee Injuries (That's Workers' Compensation)
If one of your employees is hurt on the job, general liability won't respond. You need workers' compensation insurance for that, and in most states, it's legally required if you have employees.
Foodborne Illness (Usually Requires Product Liability or Product Contamination Coverage)
Many restaurant owners assume general liability covers food poisoning claims. It doesn't, at least not in the way you'd expect.
Standard general liability policies typically exclude product liability for food you prepare and sell. To cover foodborne illness claims, you'll need:
- Product liability coverage (sometimes included in your policy as an add-on)
- Contamination or spoilage endorsements (available on some commercial property or BOP policies)
At Anchor, we always check whether your general liability policy includes product liability or whether you need a separate endorsement or rider.
Professional Errors or Advice (That's Professional Liability)
If you give advice, offer consulting services, or provide professional expertise beyond serving food, you might need professional liability (also called errors & omissions insurance).
This is rare in the restaurant world unless you also run a culinary school, offer nutrition consulting, or hold ticketed classes.
Liquor-Related Claims (That's Liquor Liability)
If you serve alcohol, general liability won't cover claims related to over-serving or serving minors. You need separate liquor liability insurance.
Example:
A patron gets intoxicated at your bar, drives home, and causes an accident. The injured party sues you for over-serving. This claim would not be covered under standard general liability.
Some carriers allow you to add liquor liability as an endorsement to your general liability or BOP, while others require it as a standalone policy.
Cyber Incidents (That's Cyber Liability)
If your restaurant's payment system is hacked and customer credit card data is stolen, general liability won't cover the resulting breach notification costs, legal defense, or fines. You need cyber liability insurance.
Your Own Property Damage (That's Commercial Property Insurance)
General liability covers damage you cause to other people's property. It doesn't cover your own building, equipment, inventory, or furniture. For that, you need commercial property insurance (often bundled into a Business Owners Policy or BOP).
Business Interruption (Also Commercial Property or BOP)
If a fire shuts down your kitchen for two months, general liability won't replace your lost income. You need business interruption coverage, which is usually added to your property policy.
Employment Practices (That's EPLI)
Claims from employees alleging discrimination, wrongful termination, harassment, or wage violations are not covered by general liability. You'd need employment practices liability insurance (EPLI).
Why Understanding the Gaps Matters
Many restaurant owners buy general liability and assume they're fully protected. But without understanding what general liability doesn't cover, you can end up with serious gaps in your insurance program.
At Anchor Insurance, we don't just sell you a policy. We help you build a complete insurance program by identifying which additional coverages you actually need, and which ones you don't.
For most restaurants, that means pairing general liability with:
- Workers' compensation (if you have employees)
- Commercial property insurance (to protect your building, equipment, and inventory)
- Liquor liability (if you serve beer, wine, or spirits)
- Product liability or contamination coverage (for foodborne illness claims)
- Cyber liability (if you handle customer payment data)
We shop multiple carriers to find the combination that fits your operation, your lease requirements, and your budget.
Frequently Asked Questions
Does general liability cover food poisoning claims?
Not automatically. Most general liability policies exclude product liability for food. To cover foodborne illness claims, you'll need product liability coverage added to your policy or a contamination/spoilage endorsement. At Anchor, we make sure your policy includes this if you need it.
If a customer slips and falls in my restaurant, will general liability cover it?
Yes. Slip-and-fall claims are one of the most common general liability claims in the restaurant industry. Your policy will typically cover the customer's medical expenses, your legal defense, and any settlement or judgment (up to your policy limits).
Do I need separate liquor liability, or is it included in general liability?
Liquor liability is not included in standard general liability policies. If you serve alcohol, you'll need to either add it as an endorsement or purchase it as a separate policy. We'll help you figure out which carriers can bundle it and which require it standalone.