Insurance is necessary for the protection of any business. Restaurants need multiple types of insurance due to the number of potentially hazardous situations that can befall the business or even a customer.
Restaurants with a liquor license should have liquor liability to protect the business in case a customer has too much to drink and injures himself or others.
There are many scenarios where a customer can fall into harm's way. A customer may slip and fall or get sick from the food, and the restaurant could get sued. General liability covers a large majority of situations where a customer would want to sue.
Property insurance will protect the business in many instances of vandalism or damage to the physical property; however the coverage needs to be looked at, since many insurers only cover certain types of damage. Many insurers will have different plans for natural disasters such as floods.
Most states require that a restaurant carry some type of workers compensation plan. There are many potential risks for employees of a restaurant, a potentially hazardous job putting employees in close proximity to fire and chemicals. If a worker receives a work-related injury, workers compensation insurance should protect the business.
Food Contamination Insurance
When the power goes out, perhaps from a storm or a blackout, this will cover the cost of the spoiled food in the refrigerators and freezers.
Loss of Business Insurance
The restaurant industry is a notoriously volatile business, so loss of business insurance will cover much of the finances lost in case the restaurant should have to shut down. It can be costly, so you will likely just break even if this situation happens.