Restaurant Insurance in Indiana
The policies a Indiana restaurant, bar, food truck, or catering operation needs — what the state requires, what's strongly advised, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
In Indiana, a restaurant's core program is general liability, a property or business-owner's policy (BOP), and commercial auto for any delivery. Workers' compensation is mandatory once you hire staff, and dram-shop law exposes any alcohol-serving business, so liquor liability is strongly advised. This hub compares Indiana's workers' comp and liquor-liability rules and cost alongside the coverages every restaurant and bar should carry.
- Workers’ comp
- Required once you hire staff
- Liquor liability
- Dram-shop law applies — strongly advised
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M
Workers’ compensation in Indiana
Yes. Indiana requires workers' compensation for essentially every restaurant with one or more employees under IC 22-3, including part-time and seasonal staff. Sole proprietors, partners, and LLC members may exclude themselves. Operating uninsured is a Class A infraction with fines up to $10,000, and the Worker's Compensation Board can order the business closed until it shows proof of insurance.
Full Indiana workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Indiana
Indiana has a dram shop law (Ind. Code § 7.1-5-10-15.5). A furnisher of alcohol is civilly liable for harm caused by a drinker’s intoxication only if it had actual knowledge the person was visibly intoxicated when served, and that intoxication was a proximate cause of the injury. Insurance is not mandated by statute.
Full Indiana liquor-liability guide — the statute, limits, and cost →
Coverages every Indiana restaurant should weigh
- General liability
Third-party slip-and-fall and property-damage claims — the foundation policy.
- Business owner’s policy (BOP)
Bundles general liability with property coverage for your building, equipment, and contents.
- Commercial property
Kitchen equipment, tenant improvements, signage, and inventory.
- Commercial & hired/non-owned auto
Delivery, catering runs, and errands in owned or employee vehicles.
- Employment practices (EPLI)
Harassment, discrimination, and wrongful-termination claims from staff.
- Umbrella
Extra limits above your liquor, auto, and general liability policies.
Indiana regulators
Talk to an agent who insures food & beverage every day
A licensed commercial-lines agent who specializes in restaurants and bars will review your coverage, close the gaps that catch owners, and show you what a program actually costs — before anything is bound.